Strong Petrochemical (Asia) Company Limited (Strong Petrochemical (Asia)), a wholly owned subsidiary of Strong Petrochemical Holdings (HKG:0852) has agreed to acquire 57% of the enlarged share capital of Hainan Huizhi Fine Chemical Industry Co., Ltd. for RMB28.5 million. Fizi Tech Developing Co., Ltd. will hold 31% and Nanjing Kaifeng Petroleum & Chemical Co., Ltd. will hold 12% of the enlarged issued share capital of Hainan Huizhi.

As the majority shareholder, Strong Petrochemical (Asia) undertakes to provide financial support to the project. In particular, Strong Petrochemical (Asia) will provide Hainan Huizhi with the interests-bearing loan and Hainan Huizhi will pledge all of its assets to Strong Petrochemical (Asia) as guarantee in return.

The total investment of the project is estimated to be HK$180 million. The project is expected to be finished on or before 31 March 2013. The loan will be repaid on four batches within five years.

Hainan Huizhi has its advantage and priority in manufacture and development of the chemical products in the PRC market, Strong Petrochemical said.