Zhejiang Zhongda Yuantong Industrial Co., Ltd. agreed to acquire 51% stake in Zhejiang Yuantong Electromechanical Industry and Trade Co., Ltd. from Zhejiang Material Industrial Zhongda Yuantong Group Co., Ltd. (SHSE:600704) for CNY 30.9 million on August 24, 2013. In a related transaction, Zhejiang Zhongda Yuantong Industrial Co., Ltd. agreed to acquire 70% stake in Zhejiang Yuantong Stainless Steel Co., Ltd. for CNY 25 million, 80% stake in Zhejiang Yuantong Qida Trading Co., Ltd. for CNY 12.46 million, and 35% stake in Zhejiang Yuantong Electromechanical Economy & Trade Co., Ltd. for CNY 3.27 million from Zhejiang Material Industrial Zhongda Yuantong Group Co., Ltd. After the completion of the adjustment in equity structure, Zhejiang Zhongda Yuantong Industrial Co., Ltd. and other existing shareholders intend to respectively carry out a capital increase toward the four companies corresponding to their shareholding.

As of December 31, 2012, Zhejiang Yuantong Electromechanical Industry and Trade Co., Ltd.'s audited total assets is CNY 357.94 million and net assets is CNY 92.47 million; its 2012 revenues is CNY 1.43 billion and net profit is CNY 15.08 million. As of June 30, 2013, Zhejiang Yuantong Electromechanical Industry and Trade Co., Ltd. has total assets of CNY 497.35 million and net assets is CNY 107.6 million; its 2013 half-year revenues is CNY 527.95 million and net profit is CNY 15.13 million. Board of Directors of Zhejiang Material Industrial Zhongda Yuantong Group Co., Ltd. unanimously approved the transaction on August 24, 2013. This transaction is subject to the approval of Zhejiang state-owned assets administrative department before implementation.