Hebei Qiangtao Real Estate Development agreed to acquire 25.5% stake in Hebei Jisheng Real Estate Development Co., Ltd. from ShangHai TIANCHEN Co.,Ltd. (SHSE:600620) for approximately CNY 230 million on January 8, 2014. Hebei Qiangtao Real Estate Development will also acquire shareholder's loan of Hebei Jisheng Real Estate Co. Qiangtao Company will pay CNY 12 million within five days of signing the agreement. A share purchase agreement will be signed after the board and shareholders of ShangHai TIANCHEN approve the transaction. Hebei Qiangtao Real Estate Development will pay to the supervisory agent a total amount of CNY 200.32 million which will be paid in two installments. As soon as the local bureau of industry and commerce accepts the application, Hebei Qiangtao Real Estate Development will pay CNY 104.10 million and CNY 96.15 million will be paid after the equity change has been filed and registered. Within one month after the signing of the share purchase agreement, Hebei Qiangtao Real Estate Development will pay the remaining balance of CNY 16 million.

The transaction was approved by Board of ShangHai TIANCHEN. The transaction still needs to be approved by ShangHai TIANCHEN's shareholders. As of November 30, 2013, Jisheng Company's total assets are CNY 612.31 million and net asset is CNY 172.02 million. As on January 25, 2014, transaction was approved by shareholders of Shanghai Tianchen Co. Shanghai Tianchen and Hebei Qiangtao Real Estate Development confirmed to proceed with the transfer and acquisition for a total price of approximately CNY 220 million, and agreed to pay for the price in 2 installments before the end of April 2014.