Huafon Chemical: Repurchases equity in Chongqing Spandex, a subsidiary held by CDB Development Fund

Huafon Chemical announced that the fifth meeting of the sixth board of directors was held in January 2016, and the "Proposal on Cooperation with CDB Development Fund Co., Ltd." was reviewed and approved, and the "Investment Contract" was signed. CDB Development Fund Co., Ltd. will invest RMB 100 million in its subsidiary Huafon Chongqing Spandex Co., Ltd. to invest in its 60,000-ton differentiated spandex project with an annualized rate of return of no more than 1.2%. The investment period is In 2012, after the capital increase, the CDB Development Fund accounted for 8.68% of the paid-in registered capital of Chongqing Spandex after the capital increase.

According to the "Investment Contract", the company repurchased the above-mentioned shares from the CDB Development Fund in two phases, and paid the first phase of equity transfer payment of 50 million yuan to transfer the 4.34% equity of Chongqing Spandex held by it, and the repurchase was completed After that, the company holds 95.66% equity of Chongqing Spandex. The share pledge release procedures involved in the repurchase in this period have been completed, and the company has recently completed the relevant industrial and commercial change registration procedures.