The shareholders of the company's non-tradable shares shall arrange consideration to the shareholders of the tradable shares in the proportion of 3.7 shares for every 10 tradable shares. In addition, according to the "Special statement on the occupation of funds by the controlling shareholders of Shandong Lubei Chemical Co., Ltd." issued by Shandong Zhengyuan Hexin Co., Ltd., before August 28, 2003, Lubei Group occupied 151168586.67 yuan of the company's non-operating funds, and after negotiation between the two sides, it was proposed to provide a total of 22675646.41 yuan for the use of funds. Combined with the company's non-tradable share structure reform, the company will repurchase 28313393 state-owned legal person shares from Lubei Group at a price of 6.14 yuan per share. The repurchase money is used to offset the capital occupation of the company and the corresponding interest expenses of Lubei Group, totaling 173844233.08 yuan. The shares repurchased by the company to Lubei Group will be cancelled in accordance with relevant laws and regulations and the company's registered capital will be reduced. After the completion of the company's share reform and targeted repurchase plan, Lubei Group is still the largest shareholder of the company, with a shareholding ratio of 28.45%, down from 47.78% before the reform.