Formerly Loften Environmental Technology Co.,Ltd., Hongchuang Holding was established on August 11, 2000. On August 17, 2007, a resolution proposed by all the shareholders of Loften was passed at the shareholders’ general meeting, that RMB 48,000,000 would be allocated from their holdings of Loften’s equity corresponding to audited net assets of RMB76,834,409.79 as at March 31, 20017, to convert into the company’s share capital at the ratio of 1:1.