In this acquisition, Huayi Brothers

In this acquisition, Huayi Brothers paid a total consideration of 6.7 million yuan, of which 66.7% was cash. The phenomenon of high cash ratio deserves special attention. The lack of capital chain and the reduction of cash will lead to the decrease of the solvency of enterprises and increase the risk of M & A. Huayi Brothers purchased 50.88% equity of Yinhan technology in the form of cash and share hybrid payment, which is conducive to adjusting the premium range and effectively avoiding the capital risk model brought by overvalued value and premium in cash payment. Of which, 223 million yuan was paid for shares and 448 million yuan was paid in cash. As of December 31, 2013, Huayi Brothers had a monetary capital of 1.137 billion yuan, and the cash payment of M & A transactions accounted for 39.40% of the total monetary capital.