Yu Diamond: Announcement on the collection and storage of some state-owned land use rights of the company

Stock code: 300064 Securities abbreviation: Yu Diamond Announcement No.: 2016-066
Announcement of Zhengzhou Huajing Diamond Co., Ltd. on the collection and storage of some state-owned land use rights of the company

The company and all members of the board of directors guarantee the truthfulness, accuracy and completeness of the information disclosure, and there are no false records, misleading statements or major omissions.
I. Overview of the transaction 1. According to the Law of the People's Republic of China on the Property Law, the Land Administration Law of the People's Republic of China and the Law of the People's Republic of China on Urban Real Estate Management, the relevant administrative regulations and the land reserve policy, the Zhengzhou Municipal People's Government Approved, Zhengzhou City Land Reserve Center commissioned the Land Reserve Center of Zhengzhou High-tech Industrial Development Zone on behalf of the Municipal People's Government to implement the storage and storage of some state-owned land use rights of Zhengzhou Huajing Diamond Co., Ltd. (hereinafter referred to as “the company”).
2. On August 14, 2016, the 21st meeting of the third board of directors of the company reviewed and approved the “Proposal on the Collection and Storage of Some State-owned Land Use Rights of the Company”, and the Independent Directors expressed their independent opinions on the above matters. According to the relevant provisions of Article 9.3 of the “Stock Listing Rules of the GEM of Shenzhen Stock Exchange”, it is still subject to the shareholders' meeting for deliberation.
3. The transaction does not constitute a connected transaction, nor does it constitute a major asset restructuring as stipulated in the Measures for the Administration of Major Asset Restructuring of Listed Companies.
Second, the basic situation of the counterparty The counterparty is the Zhengzhou Land Reserve Center and the Zhengzhou High-tech Industrial Development Zone Land Reserve Center.
The Zhengzhou Land Reserve Center is the office of the Zhengzhou Municipal Government's land consolidation reserve, and undertakes the work of land consolidation, collection, acquisition, recovery, replacement, reserve and supply. The Land Reserve Center of Zhengzhou High-tech Industrial Development Zone is the office of the land consolidation reserve of Zhengzhou High-tech Industrial Development Zone Management Committee, and undertakes the work of land consolidation, collection, acquisition, recovery, replacement, reserve and supply in its jurisdiction.
According to the company's self-examination, the company has no relationship with Zhengzhou Land Reserve Center and Zhengzhou High-tech Industrial Development Zone Land Reserve Center. This transaction does not constitute a connected transaction.
III. Basic information of the transaction target The transaction target is located in the north of Dongqing Street and the south of Shinan Road in Zhengzhou High-tech Zone. It is the production and operation land of the company: 1. Zongdiyi Land Certificate No.: Zheng Guoyong (2008) No. 0639 Land Location: Holly Street North, Shinan Road West;
Use right area: 19,177.80 square meters;
Land use: industry;
2. Zongdi II Land Certificate No.: Zheng Guoyong (2012) No. 0006 Land location: Chunteng Road East, Dongqing Street North;
Area of ​​use rights: 48,410.17 square meters;
Land use: industry.
The two land-based company controlling shareholders Henan Huajing Superhard Materials Co., Ltd. invested in the company through capital increase and transfer in March and November 2008 respectively. The above two land areas totaled 67,587.97 square meters, and the right to use was owned by the company. As of June 30, 2016, the book value of the above land assets was approximately RMB 22,339,851.32 and the net book value was approximately RMB 22,339,851.32.
There is no mortgage, pledge or other third party rights in the above two land, there are no major disputes involving the relevant assets, litigation or arbitration matters, and there are no judicial measures such as sealing up and freezing.
Fourth, the main content of this transaction
1. Land Acquisition Scope The land acquisition and acquisition is located in the north of Shiqing Street and the west of Shinan Road in Zhengzhou High-tech Zone. The acquired area is 19,177.80 square meters (28.767 mu) of parcels and 48,410.17 square meters (72.615 mu) of parcels. The type of land use right is for sale and the land use is industry.
2. The compensation standard is in accordance with the “Measures for Compensation for the Acquisition of State-owned Land in Zhengzhou City” (Zheng Zheng [2011] No. 32) and the Supplementary Provisions on the Compensation Measures for the Acquisition of State-owned Land in Zhengzhou City (Zheng Zhengwen [2015] No. 151). The purchase and storage will be compensated according to a certain proportion of the net price of the land transfer transaction. The net transaction price refers to the balance after deducting 30% of the total price of the land transfer transaction.
The part of the land transfer transaction price is within 5 million yuan/mu (inclusive), which is compensated according to 60% of the net price of the transaction; the unit price of the land transfer transaction is between 5 million and 6 million yuan/mu (inclusive), and the transaction is sold. 50% of the net price compensation; the unit price of land transfer transaction between 600-700 million yuan/mu (inclusive) is compensated according to 40% of the net price of the transaction; the unit price of land transfer is 7-8 million yuan/mu ( The part between the parts is compensated by 30% of the net price of the transaction; the unit price of the land transfer is more than 8 million yuan/mu, and the part is no longer compensated.
3. Conditions for land delivery (1) The boundary of the land boundary is clear, the ownership is not disputed, there is no third-party assets on the ground or underground, and the land and the above-ground buildings are unsecured and sealed, and there is no legal dispute. ;
(2) The above-ground buildings, structures and their ancillary facilities shall be demolished within the scope of land transfer, and the garbage shall be cleared and transported. Personnel evacuated, equipment and materials were evacuated, and the conditions of “net land” were met. The parcels to the wall were built in accordance with the boundary points; (3) except for the various pipelines and pipelines laid by the government to build public utilities, the rest of the land was delivered. Facilities such as water, electricity, gas, heating, communication, etc., handle the procedures for closing the report and settle the relevant expenses, and continue to use it to complete the resettlement work; the land delivered will be accepted by the Land Reserve Center of Zhengzhou High-tech Industrial Development Zone. After the land conditions, the land reserve center of Zhengzhou High-tech Industrial Development Zone and the company signed a written transfer of opinions, and the time of land transfer will be subject to the time of confirmation of the transfer of opinions.
V. Production arrangements after land use rights are collected and stored After the land is collected and stored, the company will carry out production transfer and business integration.
VI. Review procedures and authorization matters 1. After the transaction is reviewed and approved by the board of directors, the transaction needs to be submitted to the company's shareholders meeting for deliberation;
2. After the shareholders' meeting reviewed and approved the land acquisition and storage, the board of directors authorized the management of the company to sign the “State-owned Land Acquisition Contract” and go through relevant formalities in accordance with relevant laws and regulations.
VII. The purpose of the land acquisition and storage and the impact on the company According to the urban construction plan of Zhengzhou City, and considering the needs of the company's business development, the company intends to take this opportunity to transfer production to the company's plant located in the north of Dongqing Street and the south of Shinan Road in the High-tech Zone. Integration with the business to achieve cost reduction and efficiency.
The completion of land acquisition and storage will have a positive impact on the company. The impact on the company's 2016 annual results will be confirmed based on the progress of the transaction. The specific data is subject to the audited 2016 annual report. The company will actively cooperate with the government to do a good job of collecting and storing, and timely fulfill its information disclosure obligations in accordance with relevant regulations.
VIII. Documents for reference 1. Resolution of the 21st Meeting of the Third Board of Directors of Zhengzhou Huajing Diamond Co., Ltd.; 2. Independent Director of Zhengzhou Huajing Diamond Co., Ltd. on the 21st Meeting of the Third Board of Directors Independent Opinions on Related Matters.
Special announcement.

Zhengzhou Huajing Diamond Co., Ltd. Board of Directors
August 16, 2016