Hunan Valin Iron & Steel Group Co. Ltd. agreed to acquire 5.01% stake in Hunan Valin Lianyuan Iron & Steel Co., Ltd. from Hunan Valin Steel Co. Ltd. (SZSE: 000932) for approximately CNY 280 million in cash on June 30, 2011. Upon completion of the equity transfer, Hunan Valin Steel Co. Ltd. will hold a 94.99% stake in Hunan Valin Lianyuan Iron & Steel Co., Ltd. In a related transaction, Hunan Valin Iron & Steel Group Co. Ltd. agreed to acquire 5.48% stake in Hunan Valin Xiangtan Iron & Steel Company Ltd. from Hunan Valin Steel Co. Ltd. (SZSE: 000932) for approximately CNY 730 million in cash on June 30, 2011. The transfer price of these equities will be used to carry out investment in Hunan Valin Xiangtan Iron and Steel Co., Ltd. and Hunan Valin Lianyuan Iron and Steel Co., Ltd. Following the transfer, Hunan Valin Steel Co. Ltd. will invest CNY 400 million in Hunan Valin Lianyuan Iron and Steel Co., Ltd. in cash and will hold 95.81% stake in Hunan Valin Lianyuan Iron and Steel Co., Ltd. Hunan Valin Iron & Steel Group Co., Ltd. will hold a 4.19% stake in Hunan Valin Lianyuan Iron and Steel Co., Ltd. The transaction has been resolved in Hunan Valin Steel Co., Ltd.'s annual general meeting on June 30, 2011. CAREA Assets Appraisal Co., Ltd. acted as appraiser for Hunan Valin Lianyuan Iron & Steel Co., Ltd. Hunan Valin Iron & Steel Group Co. Ltd. cancelled the acquisition of 5.01% stake in Hunan Valin Lianyuan Iron & Steel Co., Ltd. from Hunan Valin Steel Co. Ltd. (SZSE:000932) on June 30, 2012.