1. Name of the objective: Two pieces of land, no. 016-252-001200 and 016-252-001400, locating at Binjiang Village, Qingshan County, Yizheng City, Yangzhou
2. Date of the occurrence of the event: 2014/10/27~2014/10/27
3. Volume, unit price and total monetary amount of the transaction:
Square measure of land: 50,865.9 M2
Total monetary amount: RMB 59,560,300
4. Counterpart to the trade and its relationship to the Company:
Trading counterpart: Tong Da Gas Industries (Yangzhou) Ltd.
Relationships to the Company: Both are subsidiaries of OUCC
5. Where the counterpart to the trade is an actual related party, a public announcement shall also be made of the reason for choosing the related party as trading counterpart and the identity of the previous owner (including its relationship with the company and the trading counterpart), and date and price of previous transfer
The cause: Under requirement for land planning permit application, Tong Da needs to acquire the land usage right, construction and attachment of the ASU and C2 tank.
Owner of previous transfer: 016-252-001200, Yizheng National Land Bureau, Jiangsu 016-252-001400, Oriental Petrochemical (Yangzhou) Corporation Ltd.
Relationship between the company and counterpart: Subsidiaries of OUCC
Relationship to the Company: Subsidiaries of OUCC
Relationship with the trading counterpart: None
Price of previous transfer: NA
Dates of previous transfer: 016-252-001200 by 2014/9/12 016-252-001400 by 2014/12/12
6. When the person who owned the property within the past five years has been an actual related person of the company, a public announcement shall also include the dates and prices of acquisition and disposal by the related person and the person’s relationship to the company at those times: NA
7. Anticipated profit or loss from the disposal (not applicable in cases of acquisition of assets) (where originally deferred, the status or recognition shall be stated and explained): Anticipated profit of RMB 166,297.77 for the sold of equity
8. Terms of delivery or payment, restrictive covenants in the contract, and other important stipulations:
(1) Terms of delivery or payment: Completion of contract to be scheduled after approval of BOD
Down payment: 95% of total amount, i.e. RMB 56,582,285, for Tong Da to pay Far Eastern Union
2nd payment: 5% of total amount, i.e. RMB 2,978,015, payment due within 30 days after completion of land handover by Far Eastern Union
(2) Restrictive covenants in the contract, and other important stipulations: None. 9. The manner in which the current transaction was decided the reference basis for the decision on price, and the decision-making department:
The manner in which the current transaction was decided: Price provided by competent assets evaluation company
The reference basis for the decision on price: Verification report of assets evaluation by Jiangsu SDH Real Property Assessment Co., Ltd.
The decision-making department: Board of Directors
10. Name of certified company which conducts the evaluation and the amount evaluated:
Jiangsu SDH Real Property Assessment Co., Ltd. RMB59,560,300
11. Name of real property valuers:
Jiangsu SDH Real Property Assessment Co., Ltd.—T.S. Yen, registered assets valuer numbered 3220130059
Jiangsu SDH Real Property Assessment Co., Ltd.—C. Wu, registered assets valuer numbered 3220100087
12. Practice certificate numbers of the certified real property valuers: Same as above 13. Of which the verification report contains, the definitive, or specific, or exceptional price?: None
14. Was it due to the yet to be obtained verification report: No.
15. Accountable reason for the unavailability of the verification report:
16. Reason of critical discrepancy in comparison to the transaction amount and the opinion of the CPA: NA
17. Broker and brokerage fee: No
18. Concrete purpose or use of the acquisition or disposition: Under requirement of Tong Da for land planning permit application
19. Do the Directors have any objection to the present transaction?: No
20. Such transaction be identified as related party transaction?: Yes
21. Date of BOD’s resolution: 2014/10/27
22. Date of Supervisors’ approval: 2014/10/27
23. Does the transaction conclude with real estate acquisition from the related party?: No
24. The evaluated price according to article 15 regulation governing “Procedure for assets acquisition of disposal by the public company”: NA
25. The evaluated price according to article 16 regulation when aforementioned evaluation price is lowered than the transaction price: NA
26. Any other matters that need to be specified: No