Song Weipu, acting General Manager and Chief Financial Officer, Song Hutang, Executive Deputy General Manager, Ma Yongxin, Deputy General Manager, Liu Xiaoyan, the Chairman of the Board of Supervisors along with middle-level managers agreed to acquire 12% stake in Zhanjiang Shihua Chemical Co., Ltd. from Maoming Petro-Chemical Shihua Co., Ltd (SZSE:000637) for CNY 32.8 million on April 27, 2021. Under the terms of the transaction, CNY 32.76 million will be paid in cash for CNY 1.05 per share and within 30 days from the effective date of the equity transfer agreement. Song Weipu will acquire 3% stake for CNY 7.8 million, Song Hutang will acquire 1% stake for CNY 2.6 million, Ma Yongxin will acquire 1% stake for CNY 2.6 million, Liu Xiaoyan will acquire 0.5% stake for CNY 1.3 million and middle-level managers will acquire 6.5% stake for CNY 16.9 million. Post-closing, Maoming Petro-Chemical Shihua Co., Ltd will own 88% stake in Zhanjiang Shihua Chemical Co., Ltd. For the period ended March 31, 2021, Zhanjiang Shihua Chemical Co., Ltd. had total assets of CNY 803.4 million, net assets of CNY 222.3 million, operating revenues of CNY 51.2 million and net loss of CNY 4 million. The equity transfer agreement has not yet been signed, and it will be signed after being reviewed and approved by general meeting of shareholders of Maoming Petro-Chemical Shihua Co., Ltd. The transaction is also subject to industrial and commercial change registration. On April 27, 2021, the transaction was approved at the fourth meeting of the 11th Board of Directors of Maoming Petro-Chemical Shihua Co., Ltd.