China Chemical Group, the majority shareholder of the company, plans to implement a partial takeover of the company, and the acquisition report is currently being submitted for approval. China National Chemical Corporation is one of the world's top 500 companies and the largest manufacturer of basic chemicals in China. China Chemical Group Corporation currently has six business segments: new chemical materials and specialty chemicals, basic chemicals, petroleum processing and refining products, agrochemicals, rubber products, and chemical equipment. The relocation project of the company's old factory has already started and is expected to be completed in two years. The company currently has 11 sets of petrochemical production plants, including 1.4 million tons/year atmospheric distillation, 500,000 tons/year catalytic pyrolysis, 400,000 tons/year catalytic cracking, 130,000 tons/year acrylic acid and ester, and 100,000 tons/year polyethylene. The main production plants of chlor-alkali chemical are 130,000 tons/year of polyvinyl chloride paste resin, 190,000 tons/year of caustic soda, 160,000 tons/year of hydrochloric acid, 60,000 tons/year of liquid chlorine, and 1500 tons/year of gas-phase silicon dioxide. The profit level of the chlor-alkali business declined sharply. Coupled with losses in the petrochemical business, the company experienced its first performance loss in recent years in 2012. Based on the company's severe fundamental situation, the company's performance forecast for 2012, 2013 and 2014 was lowered to -0.24 yuan, -0.02 yuan, and 0.03 yuan, respectively. Currently, the company's stock price is running close to the net asset value per share, which basically reflects expectations of the company's fundamentals. As a result, the investment rating of the company's stock was downgraded to “neutral.” Risk warning: There is some uncertainty about the acquisition by the majority shareholder of the company, which will affect the valuation of the company.