On November 23, 2023, the Company Maoming Petro-Chemical received a letter from its shareholder, Sinopec Maoming, holding a 14.75% stake, submitting an ad-hoc proposal for the 2023 Fifth Extraordinary Shareholders' Meeting. The proposal sought the deliberation of the agenda item "Resolution to Terminate the Asset Sale Agreement."The proposal detailed that on June 6, 2023, Maoming Petro-Chemical and Beijing Hongda signed an "Asset Sale Agreement," wherein Maoming Petro-Chemical agreed to transfer 45% equity in Beijing Xinwoda to Hongda Wanji. As per the agreement, Hongda was to make two payments of CNY 15,200,000 and CNY 19,000,000 within 60 days (by August 26, 2023) and 120 days (by October 26, 2023) after the agreement's effectiveness on June 28, 2023.

However, Hongda only paid a performance deposit of CNY 10,000,000 by the specified date. To safeguard the interests of minority shareholders, the proposal recommended terminating the signed "Asset Sale Agreement" and opting for a public listing on a property rights exchange for resale.