On March 31, at the approval of the State Council, Sinochem Group Co., Ltd. ( “Sinochem”) and China National Chemical Corporation Ltd. ( “ChemChina”) will undertake a joint restructuring. Under such a joint restructuring plan, the equity interests of both Sinochem and ChemChina will be owned by a newly-incorporated company (the “New Holding Company”), which will be established and wholly owned by the State-owned Assets Supervision and Administration Commission on behalf of the State Council. Sinochem and ChemChina will become the wholly-owned subsidiaries of the New Holding Company. This joint restructuring will create synergy, build up a world-class chemical company, and promote a high-quality development of the chemical industry in China.