Binzhou Kangxing Grain and Oil Trading Co., Ltd entered into a share transfer agreement to acquire 5.2% stake in Baotou Huazi Industry Co., Ltd (SHSE:600191) from Baotou Beipu Industrial Co Ltd. for CNY 120 million on November 15, 2021. Under terms of transaction, Binzhou Kangxing Grain will acquire 25,332,728 shares Binzhou Kangxing will pay the share transfer price to Baotou Beipu in two phases: (1) Binzhou Kangxing will pay the first phase of share transfer price to the above-mentioned joint account within 3 working days after meeting condition that is CNY 24 million and remaining CNY 96 million will be paid Within 25 working days after the share transfer price. In related transaction, Hainan Shengtai Chuangfa Industrial Co., Ltd and Shitong Investment (Shandong) Co., Ltd entered into a share transfer agreement to acquire 49.1% stake in Baotou Huazi Industry Co., Ltd from Baotou Shichuang Economic Technology Development Co.

Ltd., and Baotou Prairie Sugar (Group) Co., Ltd for approximately CNY 1 billion on November 15, 2021. After this equity change, Baotou Beipu Industrial Co Ltd. will hold no shares in Baotou Huazi Industry. The transfer of shares under this agreement requires compliance confirmation by the Shanghai Stock Exchange before proceeding with the transfer procedures of the share agreement transfer at the Shanghai Branch of China Securities Depository and Clearing Co., Ltd. After the transferee has paid and completed the second share transfer price, the transferor shall cooperate with the transferee to complete the transfer and registration procedures of the target shares in the Shanghai Branch of China Securities Depository and Clearing Co., Ltd. the transferor shall pay the transferee RMB 10,000,000 or an amount equivalent to 0.05%/day of the share transfer price paid by the transferee (whichever is higher) as the liquidated damages.