Later, China Haohua Chemical (Group) Corporation issued a document saying that China Haohua Chemical (Group) Corporation and the company had a preliminary discussion on private placement, but the conditions for private placement were not mature and there was uncertainty at that time, which needed further demonstration.
On July 30th, 2007, the company received the Notice of Equity Transfer from Southwest Chemical Research and Design Institute: the equity transfer agreement between China Haohua Chemical (Group) Corporation and Southwest Chemical Research and Design Institute was signed on July 20th, 2007. According to the agreement, Southwest Chemical Research and Design Institute transferred all 56,82/kloc-0,293 shares of the company to China Haohua Chemical (Group) Corporation.
According to relevant regulations, China Haohua Chemical (Group) Corporation disclosed its detailed statement of changes in equity on August 8, 2007.
The equity transfer agreement signed by both parties shall come into effect after being approved by China National Chemical Corporation and the State Council State-owned Assets Supervision and Administration Commission.