Zhong Fang intends to sell its 0/00% stake in Xinjiang Zhong Fang/KLOC as an asset, and replace it with the equivalent share of Zhongwang Group held by Zhongwang Refinery. In this transaction, it is planned to put the equity of Zhongwang Group 100% at a price of 30.529 billion yuan, which will be purchased by Zhong Fang Co., Ltd. from Zhongwang Fine and National Defense and Civil Technology Integration Fund by means of asset replacement and share issuance.

Specifically, the value of the assets to be placed in this transaction is 200 million yuan, which will be replaced by the equivalent part of the equity of Zhongwang Group held by Zhongwang Refinery. The difference after replacement will be purchased by Zhong Fang in the form of issuing shares from Zhongwang Refinery and National integration of defense and civilian technologies Technology Fund.