Huapont-Nutrichem Co., Ltd. (SZSE:002004) signed an intent agreement to acquire Shandong Kaisheng New Materials Co., Ltd. from Shandong High-Tech Investment Corp, Wang Jiarong and other 18 shareholders for approximately CNY 480 million in cash and stock on August 8, 2013. Huapont-Nutrichem Co., Ltd. (SZSE:002004) signed sale transfer agreement to acquire Shandong Kaisheng New Materials Co., Ltd. from Shandong High-Tech Investment Corp and other 19 shareholders for approximately CNY 480 million in cash and stock on October 20, 2013. Huapont-Nutrichem will pay CNY 67.76 million in cash and will issue 25.54 million shares to shareholders of Shandong Kaisheng New Materials. Wang Jiarong will receive 10.87 million shares and CNY 30.93 million in cash for 43% stake, Shandong Hig-Tech Venture Capital will receive 6.32 million shares and CNY 17.98 million in cash for 25% stake, Weimei Venture Capital will receive 1.52 million shares and CNY 4.32 million in cash for 6% stake, Zhang Jie, Song Guomou and Wang Cheng each will receive 1.47 million shares and CNYY 4.2 million in cash for 5.84 % stake each, Li Bin will receive 0.59 million shares for 2% stake, Li Yongsheng will receive 0.51 million shares and CNY 1.44 million in cash for 2% stake, Liaoning Financial Market Development Consulting Service will receive 0.57 million shares for 1.92% stake, Yang Shanguo and Wang Ronghai each will receive 0.12 million shares for 0.40% stake each, Li Dianxun will receive 0.09 million shares for 0.3% stake, Wang Yejie will receive 0.08 million shares for 0.3% stake, Li Yunyong will receive 0.07 million shares for 0.24% stake, Guo Qiang will receive 0.06 million shares for 0.2% stake, Liu Na and Li Qiang each will receive 0.05 million shares and CNY 0.14 million in cash for 0.2% stake each, Zhang Shanmin will receive 0.04 million shares for 0.12% stake and Zhang Mianzhi and Sun Fengchun each will receive 0.03 million shares for 0.10% stake each in Shandong Kaisheng New Materials. Huapont-Nutrichem will finance the cash consideration from CNY 195.22 million to be raised through share placement.

Shandong Kaisheng reported revenue of CNY 208.67 million, net profit of CNY 26.55 million, total assets of CNY 210.53 million and net asset of CNY 158.89 million for 2012. As on October 8, 2013, transaction was approved by Weimei Venture Capital shareholders and other unknown seller shareholders. As on October 12, 2013, transaction was unanimously approved by Board of Directors of Luxin Venture Capital. As on October 20, 2013, transaction was approved by Board of Directors of Huapont-Nutrichem. The transaction is subject to approval by Huapont-Nutrichem shareholders. As on On November 6, 2013, State-owned Assets Supervision and Administration Commission of Shandong Provincial Government approved the transaction. As of November 8, 2013, the transaction is approved by Huapont-Nutrichem shareholders. As of April 4, 2014, the transaction has been approved by shareholders of Huapont-Nutrichem Co., Ltd. and by China Securities Regulatory Commission. Sichuan Hua Xin (Group) CPA Firm acted as accountant, Southwest Securities Company Limited (SHSE:600369) acted as financial advisor and EastBright Law Firm acted as legal advisor for Huapont-Nutrichem.