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On November 6, Dongfang Shenghong issued a announcement stating that on November 5, the company signed \"Agreements on the Transfer of Property Shares of Lianyungang Shenghong Refining and Chemical Industry Fund Partnership (Limited Partnership)\") in Suzhou and Lianyungang respectively with Dongwu Venture Capital Investment Co., Ltd., Jiangsu Fangyang Group Co., Ltd., Lianyungang Financial Holding Group Co., Ltd., Lianyungang Industrial Investment Group Co., Ltd., Lianyungang Port Holding Group Co., Ltd., Lianyungang Alkali Industry Co., Ltd., and Jiangsu Lianyungang International Logistics Park Investment Co., Ltd. The subject of this transaction are the equity interests in Lianyungang Shenghong Refining and Chemical Industry Fund Partnership (Limited Partnership) held by Dongwu Venture Capital, Fangyang Group, JinKong Group, Industrial Investment, HongKongControl Group, Alkali Industry Company, and Logistics Park Investment, respectively amounting to 9.996%, 40.00%, 12.00%, 12.00%, 6.00%, 6.00%, and 4.00%. According to the announcement, the company will invest a total of RMB 2,651.5 million to acquire 89.996% of the property interests held by the aforementioned counterparties in Lianyungang Shenghong Refining and Chemical Industry Fund Partnership (Limited Partnership) (hereinafter referred to as the “Fund”). Upon completion of this transaction, the company will hold 99.996% of the fund’s assets as a limited partner, while Dongwu Venture Capital Investment Co., Ltd. will hold 0.004% of the assets as a general partner; the fund will be included in the company’s consolidated financial statements. It is understood that the fund was established in July 2019 and is primarily engaged in equity investment. In August 2019, it completed the registration as a private investment fund with the Asset Management Association of China (Registration No.: SGX418). The investment objectives of the fund are limited to making equity investments in Shenghong Refining & Chemicals (Lianyungang) Co., Ltd. (hereinafter referred to as “Shenghong Refining & Chemicals”), a subsidiary of the company that holds a secondary controlling interest, as well as in the 16 million-ton integrated refining and chemical project operated by Shenghong Refining & Chemicals. As of the date of the announcement, the fund has not yet generated any operating income; its only external investment is in Shenghong Refining & Chemicals, holding a 10.98% stake in that company.