Shandong Head Group (002810.SZ) announced on June 12 that the company ('the transferor') intends to sell 100% equity of its wholly-owned subsidiary Yantai Fuchuan Chemical Co., Ltd. (hereinafter referred to as 'Fuchuan Chemical' or 'the target company'), which corresponds to a registered capital of RMB 40 million and a paid-in capital of RMB 40 million, to Weifang Kemei Chemical Co., Ltd. (hereinafter referred to as 'Kemei Chemical'). The net asset price of the target company in the latest period of this sale was RMB 44.5151 million.

After friendly consultations, the two parties will sign a 'Equity Transfer Agreement' on the matter of the company transferring its 100% equity of Fuchuan Chemical it holds to Kemei Chemical on the principle of equality and mutual benefit and through consultation. The equity transfer price shall not be lower than the target asset appraisal value as of May 31, 2024 (the appraisal reference date). The specific content of the transaction price and agreement for this sale of equity shall be subject to the final actual signed agreement, and the company will timely fulfill its information disclosure obligations in accordance with the actual progress of the transaction. The target of this transaction is the equity of a wholly-owned subsidiary, and the sale of this equity will result in changes to the consolidated financial statements of the listed company.