Beijing Oil HBP Group (SZSE:002554) signed an equity transfer agreement to acquire 51% stake in Weifang Kaite Industrial Control System Engineering Co., Ltd. from Feng Mingzhong, Ren Wenhao, Zhang Baohua, Jin Gang, Wang Benlong, Liu Xutao, Li Nanling and Lin Bo for CNY 38.3 million on February 21, 2013. Within 10 working days from the day of meeting all conditions precedent stipulated in the equity transfer agreement or on the day that Beijing Oil withdraws in writing, Beijing Oil shall deposit 51% of the equity transfer price into each seller's designated bank account; within 10 working days after the sellers completes industry and commerce modification and Beijing Oil has been registered as shareholder of the 51% equity in Weifang Kaite, Beijing Oil shall deposit into each seller's designated bank account the respective remaining 49% of the equity transfer price. Beijing Oil intends to use partial excess proceeds of CNY 38.25 for the acquisition of 51% equity in Weifang Kaite.

Weifang Kaite will become a holding subsidiary of Beijing Oil. Weifang Kaite had total assets of CNY 53.49 million, total liabilities of CNY 28.11 million, net assets of CNY 25.38 million, revenues of CNY 74.3 million, profit of CNY 5.82 million and net profit of CNY 5.33 million as of December 31, 2012. Weifang Kaite's shareholders approved the transaction on February 22, 2013. On February 25, 2013, Beijing Oil's Directorate approved the transaction. Reanda Certified Public Accountants Co., Ltd. acted as accountant for Beijing Oil HBP.