Yangquan Coal Industry Chemical Group Co., Ltd. agreed to acquire Yangmei Fengxi Fertilizer (Group) Co., Ltd., Hebei Yangmei Zhengyuan Chemical Group Co., Ltd., Yangmei Group Shouyang Chemical Co., Ltd. and 54.6% stake in Yangmei Group Shenzhou Fertilizer Co., Ltd. from Yangmei Chemical Co.,Ltd (SHSE:600691) for CNY 2.6 billion on April 7, 2020. As on October 29, 2020, a supplement agreement has been signed and CNY 1.4 billion has been received by Yangmei Chemical. The remaining payment will be based on on the period profit and loss audit report, and will be paid within 10 working days after the audit report is issued. The parties unanimously agreed that Yangmei Coal Chemical Group Company shall pay all transaction considerations to the company by bank transfer within ten working days after the entry into force of the respective agreement. As of December 31, 2019, Yangmei Fengxi Fertilizer (Group) Co., Ltd., Hebei Yangmei Zhengyuan Chemical Group Co., Ltd., Yangmei Group Shenzhou Fertilizer Co., Ltd. and Yangmei Group Shouyang Chemical Co., Ltd. has reported the total assets of CNY 20.68 billion, the net assets of CNY 2.05 billion, and the operating income of CNY 7.68 billion and net loss of CNY 630.23 million. The Board of Directors of Yangmei Chemical Co.,Ltd has passed the reorganization. The independent Directors has reviewed and agreed to submit the transaction to the Board of Directors of Yangmei Chemical Co.,Ltd. The transaction is subject to approval from subject to the approval procedures for the transfer of state-owned assets. The evaluation results of the sale and purchase of assets still need to be filed with the Shanxi SASAC. As on June 10, 2020 the board of directors of Yangmei Chemical Co.,Ltd approved the transaction. As of June 29, 2020, the transaction was approved by 2nd special shareholders’ meeting for 2020 of Yangmei Chemical Co.,Ltd. As of October 29, 2020, the supplement agreement has been approved by the Board of Yangmei Chemical. Yangquan Coal Industry Chemical Group Co., Ltd. completed the acquisition of Yangmei Fengxi Fertilizer (Group) Co., Ltd., Hebei Yangmei Zhengyuan Chemical Group Co., Ltd., Yangmei Group Shouyang Chemical Co., Ltd. and 54.6% stake in Yangmei Group Shenzhou Fertilizer Co., Ltd. from Yangmei Chemical Co.,Ltd (SHSE:600691) on April 8, 2021. Yangmei Chemical Co., Ltd received the second payment of CNY 812.9 million. So far, all transaction payments involved in the asset sale have been paid.