On May 28, 2021, Maohua Shihua (000637.SZ) announced that the company won the non-performing debt rights of Maoming Kaiyuan Nitrogen Fertilizer Co., Ltd., Maoming Weilong Chemical Industry Co., Ltd., and Maoming Weilong Trading Co., Ltd. from China Huarong Asset Management Co., Ltd. Guangdong Branch (hereinafter referred to as 'Huarong Company') for a total of CNY 178.01 million. The company plans to control Kaiyuan Nitrogen Fertilizer, Weilong Chemical Industry, and Weilong Trading through debt-for-equity swaps and cooperate in the construction of the Maoming Kaiyuan Hydrogen Production and Co-production Project. However, due to the implementation of policies restricting high energy consumption and disagreement on equity ratio and payment price with Kaiyuan Nitrogen Fertilizer, the cooperative project has been slow to progress.

In order to optimize resource allocation, revitalize existing assets, improve asset structure, and bridge the funding gap, as well as enhance sustainable development and profitability, the company plans to transfer the target debt rights through public listing.