Xingfa Chem announced that its wholly-owned subsidiary Baokang Chufeng intends to acquire 50% equity of Qiaogou Mining held by Yaohua Co., Ltd. in cash, with a transaction price of 855 million yuan. The funding will come from its own funds and bank loans. Upon completion of this transaction, Qiaogou Mining will become a wholly-owned subsidiary of the company. This transaction does not constitute a related party transaction, nor does it constitute a major asset reorganization as defined by the "Administrative Measures for Major Asset Restructuring of Listed Companies."