Shares Transfer of Sichuan Chemical and Lutianhua      

Sichuan Chemical Company Limited (Sichuan Chemical, SZ: 000155) and Sichuan Lutianhua Co., Ltd. (Lutianhua, SZ: 000912) jointly announced on July 25th that Sichuan Chemical Holding (Group) Co., Ltd. will acquire free of charge a 63.49% interest in Sichuan Chemical and a 59.33% interest in Lutianhua from its wholly-owned subsidiaries Chuanhua Group and Sichuan Lutianhua Group respectively.  
   Upon completion of the deal, Sichuan Chemical Holding will control directly these two companies listed in Shenzhen Stock Exchange and become their first largest shareholder either.
   According to experts, it is a sign for the merging of Sichuan Chemical and Lutianhua.
   Sichuan Chemical, headquartered in Qingbaijiang District of Chengdu, Sichuan province, is one of the biggest ammonia and nitrogenous fertilizer producers in China and also the biggest melamine and lysine producer.
   Lutianhua, located in Luzhou, also Sichuan province, is an ammonia and urea producer using natural gas as raw material.
   The two companies have not disclosed the purpose of the deal. News from the local daily says that the merging will be concluded this September.