DFD disclosed that the company reviewed and approved the “Proposal on Establishing a Joint Venture Company for Foreign Investment”. DFD and Henan Shengchi Huayuan Industry Company (hereinafter referred to as “Huayuan Industry”) will jointly invest and set up Henan Fuxing Industry Company (hereinafter referred to as “Fuxing Industry”, subject to the final approval of market regulatory authority), which is engaged in technology research and development of fluorine chemical products and solid waste technology, production and operation and industrial investment.
   Fuxing Industry will have a registered capital of RMB100 million, of which, DFD will invest RMB51 million, taking a share of 51% and Huayuan Industry will invest RMB49 million and take up the remaining 49%. The two parties agreed that in the future, if one shareholder is willing to withdraw from the joint venture, the price will be negotiated based on the reference asset value, company income and future earnings, and the value of the shareholder's input and that the other shareholder will have priority to the acquisition.