Yunnan Yuntianhua Co Ltd Announces Merger of Subsidiaries; to Transfer Equity Shares to Subsidiary

Yunnan Yuntianhua Co Ltd announced that its wholly owned subsidiary, a Yunnan-based chemical industry company (Subsidiary A), which is engaged in the production and transportation of ammonia and its by products, will merge with the Company's another subsidiary, another Yunnan chemical industry company (Subsidiary B), a phosphorus chemical product manufacturer, with Subsidiary A to survive and Subsidiary B to be dissolved, effective April 30, 2013. Subsidiary A will also acquire assets and debts of Furui Branch of a Yunnan-based international chemical industry company (Subsidiary C). The Company also announced that it will transfer its 100% stake in another Yunnan-based chemical industry company to Subsidiary C, for RMB 1.