Jiangsu Sailboat Petrochemical Co., Ltd. signed an agreement to acquire Danhua Chemical Technology Co.,Ltd (SHSE:600844) in a reverse merger transaction on June 13, 2019. Under the terms of the transaction, Danhua Chemical Technology Co.,Ltd will acquire Jiangsu Sailboat Petrochemical Co., Ltd. and will issue 3.01 billion shares as consideration. The transaction is subject to approval from the Board of Directors and shareholders' meeting of Danhua Chemical Technology Co.,Ltd, approval from the shareholders’ meeting of the counterparties or their respective corresponding authorities, the Board of Directors and shareholders' meeting of Danhua Chemical Technology Co.,Ltd to approve the exception of tender offer obligations in respect to Shenhong Petrochemical Group Co., Ltd. and Lianyungang Bohong Industrial Co., Ltd., the filing of the assessment report of the underlying assets by the competent department of state capital needs to be published, approval from the authority of the state-owned assets, approval from the China Securities Regulatory Commission, and the State Administration of Markets and Administration shall not make further examination decisions or prohibit the decision on the operators involved in the transaction. On June 13, 2019, the transaction was approved by 27th meeting of the 8th Board of Directors of Danhua Chemical Technology Co.,Ltd. On June 28, 2019, Danhua Chemical Technology Co., Ltd. received a comment letter from Shanghai Stock Exchange in respect of the transaction. The transaction has been approved by 8th directorate of Danhua Chemical on September 29, 2019. On December 7, 2019, the transaction is re-approved by the Board of Directors of Danhua Chemical Technology Co.,Ltd. On December 20, 2019, the State-owned Assets Supervision and Administration Commission of Jiangsu approved the transaction. Ma Ji, Shi Changhao, Zhang Chenchao, Wang Dejian of Citi Orient Securities Company Ltd. acted as financial advisors, Wang Ling, Song Yanyan, Ye Guojun of King & Wood Mallesons, China acted as legal advisors, Mao Anning, Zhao Guohao, Cui Yunwei of Ernst & Young Hua Ming LLP acted as accountants and Li Zunnong, Jin Jun, Xia Renjun of Zhong Xing Hua CPA Co., Ltd. acted as accountants to Danhua Chemical. Lu Jiegang and Hao Wei of China United Assets Appraisal Group Co., Ltd. acted as the asset evaluation agency. Jiangsu Sailboat Petrochemical Co., Ltd. canceled the acquisition of Danhua Chemical Technology Co.,Ltd (SHSE:600844) in a reverse merger transaction on September 21, 2020. Transaction has been marked cancelled due to external environment has undergone major changes.