On Jan. 5, 2015, Shandong Kangcheng Petrochemical Engineering Technology Co., Ltd. (hereinafter referred to as “Kangcheng Company”) Equity Investment Cooperation Agreement was signed in Runfar Group Headquarters, which marked Runfar Group took another substantial step in promoting Kangcheng Company’s equity structure optimization and restructuring. Runfar Group Board Chairman Teng Hexian (hereinafter referred to as “Mr. Teng”), Vice President Cui Jinfu, Chief Financial Officer Zhao Lizhu, Legal Affairs Department Manager Sun Yang, Investment Department Manager Feng Zhihua, Qingdao Rich Industry Co., ltd. Board Chairman Wang Liqiang, Marketing Director Meng Xianwu, Logistical Support Center General Manager Yu Xiaochuan, Beijing SKTD O., Ltd. General Manager Huang Zhijie attended the signing ceremony.
In Nov. 2014, after a series of investigations, Mr. Teng showed great foresight and decided to put forward the idea of promoting Kangcheng Company’s equity structure optimization and restructuring, taking advantage of the beneficial opportunity when the state encourages and supports environmental protection industry in the 12th 5-Year Plan Period, sticking to the principle of complementary advantage and win-win cooperation. With the Group’s relevant departments’ full cooperation and stable promotion, the conception was realized step by step.
Kangcheng Company was founded on March, 31, 2011. Its registered capital is 10 million Yuan. With complete qualifications and standard operations, it’s a supplier network member of CNPC and Sinopec. This optimization and restructuring involved a capital reduction and capital increase capital (including patented technology contribution), had two principal themes, i.e. equity structure adjustment, reorganization of the board of directors and the board of supervisors, and clearly prescribed the prohibition of business strife and connected transaction, aiming to create a standard modern enterprise and realize lean management.
The successful signing of the Cooperation Agreement is of milestone significance to Kangcheng Company’s healthy development. It also laid a firm foundation for the Group’s strategic expansion.
By Feng Zhihua, Investment Department
