Hainan Shengtai Chuangfa Industrial Co., Ltd and Binzhou Kangxing Grain and Oil Trading Co., Ltd entered into an agreement to acquire 31.49% stake in Baotou Huazi Industry Co., Ltd (SHSE:600191) from Baotou Prairie Sugar (Group) Co., Ltd for CNY 720 million on November 15, 2021. The transferor agrees to transfer a total of 152,717,960 shares for CNY 4.74 per share. The transferee shall pay the share transfer price to the transferor in two installments.

First installment of 20% of consideration equivalent to CNY 145 million will be paid within 3 working days after the conditions are fulfilled. Remaining 80% of CNY 580 million will be paid Within 25 working days after the transferee has paid the first share transfer price. 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. Prairie Sugar will transfer 144,994,030 shares to Hainan Shengtai and 77,23,930 shares to Binzhou Kangxing.

As of the signing date of the agreement, Prairie Sugar, holds 152,717,960 shares of the company, accounting for 31.49%, as the company's controlling shareholder; Shichuang Economic holds 85,504,925 shares of the company, accounting for the company's total share capital OF 17.61%; Beipu Industry holds 25,332,728 shares of the company, accounting for 5.22% of the company's total share capital. If this share transfer is successful, the actual control of the company will be changed. Hainan Shengtai Chuangfa Industrial Co., Ltd. will become the company's controlling shareholder, and Zhang Wenguo will become the company's actual controller.

As of April 20, 2022, The transfer of shares in this agreement has completed the second phase of the share transfer price, that is, the transferee paid a total of RMB 1 billion to the co-managed account. 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. Jing Qian and Mou Jiaqi of Beijing Bestar Securities Investment Consulting Co., Ltd acted as financial advisors to Baotou Huazi Industry Co., Ltd.