Matters: The company issued a notice terminating the company's 2011 non-public stock offering plan and adopting a new acquisition method. That is, 51% of the shares of Heze Biotechnology Co., Ltd. (“Heze Biotech” for short) were acquired with 46.92 million yuan of its own capital; the company privately issued 2020 million shares at an issue price of 2,094 yuan and raised 423 million yuan of capital, of which 45.08 million yuan was used to acquire 49% of Heze Biotech's shares. As of September 30, 2011, the assessed net asset value of 100% of Heze Biotech's shares was 115 million yuan. Main opinion: The change in biotechnology of the acquisition Heze is more conducive to the success of the acquisition. The company's original acquisition method was to issue no more than 48.67 million A shares to Tianjin Sine Investment Group, with an issue price of 940 yuan, and raised 457 million yuan in capital to acquire 100% of Heze Biotech's shares. Due to the system restrictions on ST shares and changes in the company's development, it was quite difficult for the original issuance plan to succeed. This new acquisition method, in which a listed company buys 51% of Heze Biotech's shares in cash, can ensure Heze Biotech's future combined earnings, thus bringing about a huge change in the company's performance. The successful acquisition of Heze Biotech will lead to a significant increase in performance. As of September 30, 2011, Heze Biotech's revenue was 37.45 million yuan, and net profit was negative 1.05 million yuan. But consider that the company has established two core technologies: a mesenchymal stem cell bank and an adipose stem cell bank. Meanwhile, on the basis of successfully operating several mesenchymal stem cell banks in China, Heze Biotech has signed cooperation agreements or reached cooperation intentions to build local stem cell banks with 15 provinces and cities including Heilongjiang, Shanghai, Jiangsu, Anhui, Jiangxi, Henan, Shanxi, Jilin, Liaoning, Hebei, Shaanxi, Hainan, Yunnan, Gansu, and Inner Mongolia. Heze Biotech's stem cell bank nationwide chain management network has begun to be structured. If it is fully operated in the future, the stem cell storage scale is expected to reach 200,000 new copies per year, ten times the company's current addition of 20,000 copies per year, leading to a huge increase in performance. The holding structure changed, and Li Defu became the actual controller of Zhongyuan Xiehe. By increasing the capital of Hung Hom Investment by 50 million yuan, Lee Telford directly held 37.5% of the shares of Hung Hom Investment. Through Wing Tai Hung Hom, holding 18.125% of the shares of Hung Hom Investment, and owned or controlled a total of 55.625% of the shares in Hung Hom Investment, he became the actual controller of Hung Hom Investment. The person obligated to disclose the information held 44.375% of the shares in Hung Hom Investment and lost the controlling interest in Hung Hom Investment.