Huaxin Cement Co., Ltd. (SHSE:900933) signed an equity transfer agreement to acquire 70% stake in Hubei Huaxiang Cement Co., Ltd. from Wuhan Huayu Building Materials Group Co., Ltd. and Liao Binkui for approximately CNY 420 million on November 23, 2012. Huaxin Cement Co., Ltd. (SHSE:900933) signed two supplemental agreements to acquire 70% stake in Hubei Huaxiang Cement Co., Ltd. from Wuhan Huayu Building Materials Group Co., Ltd.and Liao Binkui on November 30, 2012 and January 21, 2013. In a related transaction, Huaxin Cement Co., Ltd. (SHSE:900933) agreed to acquire 70% stake in Hubei Huaxiang Cement Ezhou Co., Ltd. from Wuhan Huachang Silicate Product Co., Ltd. and Liao Guoshu for CNY 99.4 million. Of the purchase price, Huaxin Cement must pay a deposit of CNY 40 million, will pay CNY 40 million on the signing date of agreement and the remaining balance will be paid in three installments. The 85% of the total price must be paid by the first payment and 88% on the 2nd payment. After the responsibilities and obligations in the agreement have been completed, the remaining amount must be paid within a maximum of 2 years after the equity delivery base date.

Hubei Huaxiang Cement Co., Ltd. reported total assets of CNY 851.59 million, total liabilities of CNY 627.66 million and owners' equity of CNY 223.93 million as of November 30, 2012. Hubei Huaxiang Cement Co., Ltd. reported revenues of CNY 440.94 million and net loss of CNY 149.25 million for the period from January to November 2012. The transaction is not subject to shareholders' approval and is approved by the Board of Huaxin Cement Co., Ltd. The deal is expected to be completed prior to end of February 2013. Zhong Lun Law Firm acted as legal advisor for Huaxin Cement Co., Ltd.