Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd. (SZSE:002167) entered into letter of intent to acquire Zhejiang Zr-Valley Science & Technology Co Ltd. from Zhejiang Shenghua Biok Biology Co., Ltd. (SHSE:600226), Jiang Dongmin, Shen Jianzhang, and Yao Tianrong in stock on January 2, 2014. Zhejiang Shenghua Biok Biology Co., Ltd. will sell 85% stake, Jiang Dongmin will sell 10% stake, Shen Jianzhang will sell 3% stake, and Yao Tianrong will sell 2% stake. In a related transaction, Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd. will acquire Hainan Wensheng New Material Technology Co., Ltd. As of December 31, 2013, Zhejiang Zr-Valley Science & Technology Co., Ltd. had total assets of CNY 178.77 million, owner's equity of CNY 96.07 million, revenue of CNY 282.04 million and net loss of CNY 16.94 million.

The transaction is subject to approval of China Securities Regulatory Commission and Merger, Acquisition and Reorganization Examination Committee.