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HLA and Kainuo Technology A shares restructured and listed Kainuo Technology changed its name to Haicang House from April 11
2014/04/09

Canal Scientific and Technology Company (“Canal Tech”) announced on April 3rd, 2014 that approved by Shanghai Security Exchange, the stock short name of Canal Tech would be changed to Heilan Home since April 11th with the same stock code 600398.

Canal Tech held the first extraordinary shareholders meeting in 2014 on March 31th and approved the Company Name Amendment Proposal, which changed the Canal Scientific and Technology Company into Heilan Home Corporation Limited. Pursuant to the resolution, the company completed business amendment registration on April 3rd.

Heilan Home is a large clothing company with diversified business covering the manufacturing and sales of upscale worsted fabrics, fancy suits and business wears as well as the operation of branded garments, in which, brand management, supply chain management and marketing network management are included. The company owns four major brands: HLA, EICHITOO, BETTSALE and SANCANAL. Heilan Home, since its launch, has sparked a new round of revolution in Chinese fashion market by virtue of the brand new marketing model featuring national franchise, hands-on sales and mega scale. With its market positioning of high quality with affordable price, complete product lines, and hands-on sale model, it has grained great credit from the mass consumers, and shaped the brand image of “Heilan Home - Men's Wardrobe”, and earned the top leading position in China’s men clothing market.

Restructuring timeline:
On July 20th, 2013, Canal Tech announced stock suspension from July 22nd due to major asset restructuring

On August 31st, Canal Tech publicized its restructuring plan, under which 23.29% shares of Canal Tech would be transferred from Jiangyin Third Worsted Factory, the controlling shareholder of Canal Tech, to Heilan Group at the price of RMB 509 million (150 million shares at RMB 3.38 per share). Meanwhile, Canal Tech would acquire Heilan Home, a subsidiary of Heilan Group, in the form of capital increase. A total of 3.846 billion shares at RMB 3.38 per share would be issued to shareholders of Heilan Home, valuated at RMB 13 billion. After the asset restructuring, Heilan Group will become the controlling shareholder of Canal Tech, and Heilan Home will become the wholly-owned subsidiary of Canal Tech, with Zhou Jianping as the actual controller.

On September 16th, 2013, the third extraordinary shareholder meeting of Canal Tech approved the restructuring plan with 90% affirmative votes.

On November 29th, 2013, Canal Tech received notice from China Securities Regulatory Commission that, its asset acquisition via share issuance and related party transaction of major asset restructuring were approved with conditions, by the Audit Committee for Merger, Acquisition and Restructuring at its 41st meeting in 2013.

Heilan Home Corporation Limited is based at Xinqiao Town, Jiangyin City, Jiangsu Province. Its predecessor Canal Tech was founded in 1997 and listed on Shanghai Stock Exchange in 2000 under the stock code 600398.