Announcement of BAHEAL Industrial Investment Group Co., Ltd. on the provision of guarantees by wholly-owned subsidiaries to listed companies

Stock code: 002696 Stock abbreviation: BAHEAL Shares Announcement number: 2021-047

The Company and all members of the Board of Directors warrant that the contents of the announcement are true, accurate and complete and that there are no misrepresentations, misleading statements or material omissions.

1. Overview of the guarantee situation

At the 10th meeting of the Fifth Board of Directors held on April 27, 2021, BAHEAL Industrial Investment Group Co., Ltd. (hereinafter referred to as the "Company") deliberated and passed the "Proposal on Applying for a Comprehensive Credit Line from the Bank in 2021", and agreed that the Company and some of its subsidiaries should apply to the Bank for a comprehensive credit line with a total amount not exceeding RMB1.411 billion. For details, please refer to the "Announcement on Applying for a Comprehensive Credit Line to Banks in 2021" (Announcement No. 2021-018) disclosed by the Company on April 28, 2021 in the information disclosure media "Securities Times", "Securities Daily" and Juchao Information Network (http://www.cninfo.com.cn).

According to the company's business development needs, the company recently applied to China Everbright Bank Co., Ltd. Nanning Branch (hereinafter referred to as "Everbright Bank Nanning Branch") for a comprehensive credit line of RMB 20 million, and Guangxi Baiyue Agriculture and Animal Husbandry Development Co., Ltd. (hereinafter referred to as "Baiyue Agriculture and Animal Husbandry"), a wholly-owned subsidiary of the Company, provided the company's above-mentioned financing matters with a maximum joint and several liability guarantee guarantee.

According to the relevant provisions of the Guidelines for the Standardized Operation of Listed Companies on the Shenzhen Stock Exchange (Revised in 2020) and the Articles of Association of the Company, the guarantee has fulfilled the internal approval procedures of Baiyue Agriculture and Animal Husbandry and does not need to be submitted to the board of directors and shareholders' general meeting of the company for consideration.

2. The basic situation of the guarantor

Company Name: BAHEAL Industrial Investment Group Co., Ltd

Date of establishment: April 19, 2000

Address: No. 9, Gaoxin 4th Road, Nanning High-tech Development Zone

Legal representative: Wang Jianhui

Registered capital: 34,938.691 million yuan

Business scope: investment in agriculture, fishery, food processing industry, environmental protection industry, education and cultural industry, medicine, medical equipment, medical service industry; production, processing and sales: compound feed, feed raw materials (including fishmeal, fish oil, soybean meal, rape meal, etc.); research and development of biotechnology, feed and feed additives; livestock and poultry breeding and sales (specific projects subject to the approval of the approval department); research and development of aquatic products breeding and processing technology; Internet information services (specific projects subject to the approval of the approval department) Enterprise planning, consulting services, asset investment and operation management (except for special provisions of the state); computer software development; site leasing; general freight (subject to the approval of the examination and approval department for specific projects); import and export of goods or technologies (except for imports and exports of goods and technologies prohibited by the state or involving administrative approval). (Projects that require approval in accordance with the law can only carry out business activities after approval by the relevant departments.) ）

Shareholding structure and related relationship: Baiyue Agriculture and Animal Husbandry is a wholly-owned subsidiary of the company, and the company holds 100% of the equity of Baiyue Agriculture and Animal Husbandry.

The financial data of the company (the individual) for the most recent year and period are as follows:

Unit: RMB

Contingency: None.

The company is not a judgment defaulter.

3. The main content of the security agreement

Grantor: China Everbright Bank Co., Ltd. Nanning Branch

Accredited by: BAHEAL Industrial Investment Group Co., Ltd

Guarantor: Guangxi Baiyue Agriculture and Animal Husbandry Development Co., Ltd

Guarantee method: Joint and several liability guarantee guarantee

Guarantee Period: The guarantee period for each specific credit granting business under the Comprehensive Credit Granting Agreement is calculated separately and is three years from the date of expiration of the period for the trustee to perform the debt stipulated in the specific credit business contract or agreement.

Guarantee amount: The maximum principal balance is RMB20 million.

Scope of Security: The principal amount of the debt that the Trustee should repay or pay to the grantor under the main contract, interest (including statutory interest, agreed interest and penalty interest), compound interest, liquidated damages, damages, costs of realizing the claim (including but not limited to litigation/arbitration costs, attorney fees, notary fees, enforcement costs, etc.) and all other expenses payable.

Fourth, the impact of the wholly-owned subsidiary on the company to provide guarantees for the company

The guarantee has fulfilled the corresponding internal approval procedures, and the wholly-owned subsidiary provides the company with a controllable guarantee risk, which is conducive to improving the company's financing capabilities, ensuring the company's normal operating capital needs, meeting the company's business development needs, and conforming to the overall interests of the company. The guarantee matters comply with the relevant regulations, the decision-making procedure is legal and effective, and there is no harm to the interests of the company and all shareholders, especially small and medium-sized shareholders.

5. The cumulative number of external guarantees and the number of overdue guarantees

As at the date of this announcement, the total amount of guarantees for the Company and its wholly-owned or controlled subsidiaries is $772 million. The total balance of the Company's external guarantees and its wholly-owned or controlled subsidiaries after the provision of this guarantee is RMB174.1879 million, accounting for 13.02% of the Company's latest audited net assets (as of December 31, 2020), of which the balance of guarantees provided to units outside the consolidated statements is RMB27.483 million, accounting for 2.05% of the Company's latest audited net assets (December 31, 2020).

In addition to the above guarantees, the Company has no other external guarantee matters, and the Company and its holding subsidiaries have no overdue external guarantees, no external guarantees involving litigation, etc.

6. Documents for reference

1. Comprehensive Credit Agreement signed between the Company and Nanning Branch of Everbright Bank;

2. The "Maximum Guarantee Contract" signed between Baiyue Agriculture and Animal Husbandry and Nanning Branch of Everbright Bank;

3. Decision of shareholders of Baiyue Agriculture and Animal Husbandry.

This is hereby announced.

BAHEAL Industrial Investment Group Co., Ltd

board of directors

2October 27, 2020