3. The main counterparty The counterparties of this major asset reorganization are Guangxi Beibu Gulf International Port Group Co., Ltd., Foshan Chengde Special Steel Co., Ltd., and Lao Yuyan. This transaction will constitute a connected transaction. IV. Transaction methods The major asset restructuring transaction methods include, but are not limited to, one or more ways of issuing shares to purchase assets or cash to purchase assets. The specific plan is still under discussion and has not yet been finalized. In late December, *ST Nanhua disclosed on the Shanghai Stock Exchange that the company's major asset sales plan and continued suspension of planning for major asset reorganization matters were not approved by the shareholders' meeting. At this point, the situation of shelling is very serious. Last year, Liugang Steel planned to acquire 100% of the equity of Chengde Nickel, 67% of Chengde's deferred equity and 68% of Chengde's stainless steel by issuing shares and paying cash and raising matching funds. However, Liugang said that the company and the counterparty of the transaction have significant divisions in the valuation of the underlying assets, in terms of the performance commitment and compensation terms of the underlying company, in the confirmation of the future profitability of the restructuring of the target, and in terms of transaction consideration terms. , Still unable to reach an agreement, resulting in the project being forced to terminate. This year, ST Nanhua and Beihai Chengde were restructured, but due to asset deprivation, it was extremely difficult for *N Nanhua to turn losses into account only by its main business. * ST Nanhua’s desire to sell assets for protection has not been realized, and the indirect controlling shareholder Beibu Gulf International Port Group’s plan to inject assets into it was unfortunately "born in the womb."