Chiaki: Two announcements on foreign investment and equity change

Chiaki today issued a change of ownership structure and foreign investment announcements, the main content of which is: Recently, the company and major shareholders signed the agreement on transfer of shares, the agreement stipulates new Daxin shares proposed to be held by the vilmorinhongkonglimited to hold all the new dah-mai equity. The agreement is subject to approval by the relevant State authorities and will be completed upon completion of payment of funds.　　After the transfer of the stock right, new daxin will become the only shareholder of new Dah-mai, new dah-Mai's enterprise nature will be changed from Sino-Foreign joint ventures to internal limited liability company, Chiaki Hi-tech will be transferred from foreign equity companies into pure domestic companies. The company and Vilmorinhongkonglimited signed the framework agreement of the joint venture contract, the agreement agreed that both sides will jointly invest in the establishment of joint ventures, main hybrid corn seeds, wheat seeds, oil and vegetable seeds of the research, production and marketing　　, in which companies and vilmorinhongkonglimited accounted for 60% and 40% per cent of their registered capital respectively. Our view is: After the transfer of equity, Chiaki will be transferred from the foreign equity companies into a pure domestic companies. As a seed enterprise with advantages of scale and equity structure, "pure inner", the company will become the main target in the wave of seed industry reform, leading in the domestic enterprises; joint venture to establish a subsidiary for the company's corn seed business development plan is a very important and significant step, on the one hand, will protect the company's corn varieties source,　　On the other hand, the market demand and research and development closely together, conducive to more effective variety development. Corn seed Business for the company's performance growth in the next two years, due to the pioneer of China's former president Shahe and the joint venture with the Vilmorinhongkonglimited subsidiary, we think the company imagine a larger space, The company is expected to 2010-2011 EPS is 0.23 yuan, 0.33 yuan, 0.61 yuan, taking into account the company's current stock price of 27.89 yuan to maintain a "prudent recommended" rating, we will closely track the company's operations and stock price dynamics.