Nantong Jiangshan Agrochemical & Chemical Co., Ltd. received a notice from Nantong Industry & Trade State-Owned Assets Operation Co., Ltd on May 18, 2007. The Notice said that, Nantong Industry & Trade State-Owned Assets Operation Co., Ltd. has signed Agreement on Transferring 55,440,000 Shares of Nantong Jiangshan Agrochemical & Chemical Co., Ltd. between Nantong Industry & Trade State-Owned Assets Operation Co., Ltd. and Sinochem International Corporation (hereinafter referred to the Stock Transferring Agreement) as well as the attachments. According to the agreement, the 55,440,000 shares among the 111,744,000 shares held by Nantong Industry & Trade State-Owned Assets Operation Co., Ltd. will be transferred to Sinochem International Corporation. After the transaction, Nantong Industry & Trade State-Owned Assets Operation Co., Ltd. will hold 5,6304,000 shares of Nantong Jiangshan Agrochemical & Chemical Co., Ltd., accounting for 28.44% of the total capital stock, still the largest shareholder of Nantong Jiangshan Agrochemical & Chemical Co., Ltd..

According to the Stock Transferring Agreement, Sinochem International Corporation will acquire the 55,440,000 shares among the 111,744,000 shares of Nantong Jiangshan Agrochemical & Chemical Co., Ltd., accounting for 28% of the total capital stock of Nantong Jiangshan Agrochemical & Chemical Co., Ltd..

Also, according to the Stock Transferring Agreement, the transferring price is RMB 9.018 per share, 90% of the weighted average price of Nantong Jiangshan Agrochemical & Chemical Co., Ltd. during the 20 transaction days before the signature of the agreement, and the total transferring price is RMB 499,957,920.