Ningxia Jiaze New Energy Co., Ltd. Equity Incentive Restricted Stock Repurchase Cancellation Implementation Announcement

Stock code: 601619 Stock Abbreviation: Jiaze New Energy Announcement number: 2021-116

Bond code: 113039 Bond abbreviation: Kaze to bond

The Board of Directors and all Directors of the Company warrant that the contents of this announcement are free from any misrepresentation, misleading statement or material omission and accept sole and several liability for the truthfulness, accuracy and completeness of the contents.

Important content tips

●Reasons for repurchase cancellation

According to the relevant provisions of the 2020 Restricted Stock Incentive Plan of Ningxia Jiaze New Energy Co., Ltd., one of the incentive recipients who has been granted has resigned due to personal reasons and no longer has the qualifications of the incentive object, and the company will repurchase and cancel the 100,000 restricted shares held by the original incentive object that have been granted but have not yet been lifted.

●Circumstances related to the cancellation of shares

I. Decision-making and information disclosure of the cancellation of the restricted stock repurchase

Authorized by the Company's Fourth Extraordinary General Meeting of Shareholders in 2020, Ningxia Jiaze New Energy Co., Ltd. (hereinafter referred to as the "Company") held the second session of the 24th Board of Directors and the 24th Session of the Board of Supervisors on August 20, 2021, and deliberated and passed the "Proposal on Adjusting the Company's Restricted Stock Repurchase Price in 2020" and "Proposal on Repurchasing and Canceling the Restricted Shares Granted to Some of the Company's Incentive Recipients but Have Not Yet Lifted the Restriction", and the independent directors of the Company expressed independent opinions on the above matters. Beijing Tian Yuan Law Firm issued a legal opinion. For details, please refer to the Company's disclosure of the "Ningxia Jiaze New Energy Co., Ltd. on The Repurchase and Cancellation of Some Incentive Recipients Has Been Granted" disclosed by the Company on the designated information disclosure media on August 21, 2021

However, the announcement of the restricted shares that have not yet been released (Announcement No. 2021-085) and the Announcement of Ningxia Jiaze New Energy Co., Ltd. on Adjusting the Repurchase Price of The Restricted Shares in 2020 (Announcement No. 2021-084).

On August 21, 2021, the Company disclosed the Announcement of Ningxia Jiaze New Energy Co., Ltd. on the Notice of Repurchase and Cancellation of Certain Restricted Shares to Creditors (Announcement No. 2021-086), which lasted for 45 days, during which the Company did not receive a declaration from creditors requesting repayment of debts or providing guarantees.

2. Cancellation of the restricted stock repurchase

(1) The reasons and basis for the cancellation of restricted shares in this repurchase

(2) The relevant personnel and quantity of the repurchase cancellation

The repurchase cancellation of restricted shares involved 1 person, and a total of 100,000 shares of restricted shares were repurchased and cancelled; after the completion of the repurchase cancellation, the remaining 68,870,000 shares of 2020 equity incentive shares that have not yet been released from the restriction have been lifted.

(3) Repurchase cancellation arrangements

The Company has opened a special securities account for repurchase at the Shanghai Branch of China Securities Depository and Clearing Co., Ltd. (hereinafter referred to as "Zhongdeng Shanghai Branch") and submitted an application for the repurchase cancellation of restricted shares to the Shanghai Branch of Zhongdeng. It is expected that the repurchased restricted shares will be completed and cancelled on October 29, 2021.

3. Changes in the company's share capital structure after the repurchase and cancellation of restricted shares

After the company repurchased and cancelled the restricted shares, the changes in the company's share capital structure are as follows:

Unit: Shares

Note: The above changes in the share capital structure shall be subject to the share capital structure table issued by Zhongdeng Shanghai Branch after the completion of the repurchase cancellation.

4. Explanations and Commitments

Explanation of the Board of Directors of the Company: The decision-making procedures and information disclosure involved in the repurchase and cancellation of restricted shares comply with the provisions of relevant laws and regulations such as the Measures for the Administration of Equity Incentives and the arrangements of the company's equity incentive plan and restricted stock grant agreement, and there is no harm to the legitimate rights and interests of the incentive recipients and the interests of creditors.

The company promises: The company has verified and guaranteed that the information such as the object, number of shares, and cancellation date involved in the repurchase and cancellation of restricted shares is true, accurate and complete, and has fully informed the relevant incentive objects of the repurchase cancellation, and the relevant incentive objects have not expressed objections to the repurchase cancellation. If there is a dispute between the cancellation of the repurchase and the relevant incentive object, the company will bear the relevant legal liabilities arising therefrom.

5. Concluding observations of legal opinions

Beijing Tian Yuan Law Firm issued a legal opinion on the restricted shares that have been granted to some of the incentive recipients of this repurchase but have not yet been lifted, arguing that:

As of the date of this legal opinion:

(1) The company has obtained the necessary approvals and authorizations at this stage for the repurchase and cancellation of some restricted shares in this incentive plan, and has fulfilled the necessary information disclosure obligations at this stage, in line with the relevant provisions of the Administrative Measures and the Incentive Plan;

(2) The reasons for the company's repurchase cancellation, the number of repurchases, the repurchase price and the expected cancellation date are in accordance with the relevant provisions of laws, administrative regulations, the Administrative Measures and the Incentive Plan;

(3) Due to the reduction of some restricted shares due to the repurchase and cancellation of some restricted shares, as of the date of the issuance of this legal opinion, the company still needs to complete the cancellation registration procedures for restricted shares and the registration procedures for industrial and commercial changes to reduce the registered capital in accordance with the relevant provisions of the Company Law and the Incentive Plan.

This is hereby announced.

Ningxia Jiaze New Energy Co., Ltd

Board of Directors

2O21/00/27