Sichuan Pingyuan Industrial Development Co., Ltd, the second largest shareholder of Sichuan Hongda Chemical Industry Co., Ltd, held 66,918,400 shares of the company before the stock merger reform and holds 66,918,400 restricted tradable shares, 16.09% of the total capital stock of Hongda, after the reform. The 20,800,000 shares held by Pingyuan Industrial Development have been listed on Dec 27 2007 and become unrestricted tradable ones.

By Jan 31 2007, Pingyuan Industrial Development has reduced 15,354,428 shares that it holds through SSE. After that, Pingyuan Industrial Development still holds 51,563,972 shares of the company, accounting for 12.395% of the company.

Recently, Hongda received a notice from Pingyuan that it would continue to reduce the shares it held. By Apr 17 2007, Pingyuan reduced another 5,445,572 shares (1.30903% of the total shares of the company) through SSE. After the reduction, Pingyuan still holds 46,118,400 shares of the company, accounting for 11.08615% of the total capital stock of the company.