Announcement of Zhejiang Yongqiang Group Co., Ltd. on the progress of the actual controller's increase in the company's shares and the controlling shareholder and the actual controller's increase in the company's shares to 1%.

Announcement of Zhejiang Yongqiang Group Co., Ltd. on the progress of the actual controller's increase in the company's shares and the controlling shareholder and the actual controller's increase in the company's shares to 1%.

Stock code: 002489 Securities abbreviation: Zhejiang Yongqiang Announcement number: 2018-054

All directors, supervisors and senior management of the Company warrant that the contents of the announcement are true, accurate and complete, and are jointly and severally liable for false records, misleading statements or material omissions in the announcement.

Zhejiang Yongqiang Group Co., Ltd. (hereinafter referred to as the "Company") published the Announcement on the Shareholding Increase Plan of the Actual Controller (Announcement No. 2018-041) on May 2, 2018 in Securities Times, China Securities News, Shanghai Securities News, Securities Daily and Juchao Information Network (http://www.cninfo.com.cn), based on confidence in the company's sustainable and stable development and recognition of the company's value, to promote the company's continuity, stability, To develop healthily and protect the interests of the shareholders of the Company, the actual controller of the Company shall, in accordance with the relevant provisions of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, increase its shareholding in the Company through the methods permitted by the Shenzhen Stock Exchange (including but not limited to centralized bidding and block trading) within 12 months from May 2, 2018, and the total amount of the proposed increase shall not be less than RMB100 million and not higher than RMB150 million.

On May 10, 2018, the Company published the Progress Announcement on the Increase of the Actual Controller's Shareholding in the Company (Announcement No. 2018-043).

On June 19, 2018, the Company again received the "Notice on Increasing the Shareholding of the Company" from Xie Xianxing, one of the actual controllers of the Company, and at the same time received the "Notice on Increasing the Shareholding of the Company to 1%" from the controlling shareholder Linhai Yongqiang Investment Co., Ltd. and the actual controllers Xie Xianxing, Xie Jianyong, Xie Jianping and Xie Jianqiang, and hereby announces the relevant matters as follows:

First, Xie Xianxing's increase in shareholding

From June 7, 2018 to June 19, 2018, Xie Xianxing increased his holdings in the Company by a total of 8,293,185 shares, accounting for 0.38% of the total number of shares in the Company, with an average price of RMB4.06, for a total increase of about RMB33.63 million.

Before the increase, Xie Xianxing held 9,691,307 shares of the company, accounting for 0.45% of the total shares of the company; after the increase, Xie Xianxing held 17,984,492 shares of the company, accounting for 0.83% of the total share capital of the company.

Second, the increase in shares reaches 1%.

1. The entity to increase the shareholding: Mr. Xie Xianxing, one of the controlling shareholders of Linhai Yongqiang Investment Co., Ltd., one of the actual controllers

2. Purpose of shareholding increase: Based on the confidence in the company's sustainable and stable development and recognition of the company's value, promote the company's sustained, stable and healthy development and protect the interests of the company's shareholders.

3. Source of funds for increasing holdings: Self-financing of the increaser

4. Shareholding method: Centralized bidding method of Shenzhen Stock Exchange system

5. Period of increase in shareholding: September 1, 2015 to June 19, 2018

6. Details of holdings:

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Note: The Company implemented the 2015 Semi-Annual Profit Distribution Plan on September 24, 2015 as the ex-dividend date, involving the conversion of the provident fund into share capital, and the total share capital of the Company increased from 621,639,001 shares to 2,175,736,503 shares. Therefore, the calculation of the proportion of shares increased by Linhai Yongqiang Investment Co., Ltd. on September 1, 2015 in the above table is still based on the original share capital of 621,639,001.

7. Changes in the shareholding of controlling shareholders and actual controllers before and after the increase in shareholding

Note: The number of shares held before the increase in the above table has been calculated according to the latest share capital of 2,175,736,503 shares.

3. Explanation of subsequent overweight matters

Xie Xianxing said that he strictly abided by the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange and carried out the work of increasing holdings according to the shareholding plan.

4. Other explanations

1. The above-mentioned increase in shareholding is in accordance with the relevant provisions of relevant laws, regulations, departmental rules and normative documents.

2. Xie Xianxing promised not to reduce his holdings of the Company's shares during the increase period and within six months after the completion of the increase.

3. The implementation of the shareholding increase plan will not lead to the company's equity distribution not meeting the listing conditions, and will not lead to changes in the company's controlling shareholders and actual controllers.

4. The company will continue to pay attention to the shareholding of the controlling shareholder and the actual controller, and timely fulfill the information disclosure obligation in accordance with relevant regulations.

This is hereby announced

Zhejiang Yongqiang Group Co., Ltd

June 19, 2??