Anhui Jiangnan Chemical Industry Co., Ltd. (SZSE:002226) signed a cooperation agreement to acquire 7.86% stake in Dalian Kaifeng Superhard Materials Co., Ltd. from Zhang Kai, Zhang Luqing, Zhu Li for CNY 1.5 million on January 24, 2014. Anhui Jiangnan Chemical Industry will use own funds for acquisition. Dalian Kaifeng Superhard Materials reported total assets of CNY 2.09 million, net liabilities of CNY 1.78 million and net loss of CNY 0.29 million for the period January to November 30, 2013.

The transaction has been approved by Board of directors of Anhui Jiangnan Chemical Industry. The transaction does not need to be submitted for review in Anhui Jiangnan Chemical Industry shareholders.