Anhui Jiangnan Chemical Co., Ltd. Announcement on wholly-owned subsidiaries increasing capital to their subsidiaries and investing in the construction of wind farm projects

Stock code: 002226 Stock abbreviation: Jiangnan Chemical Announcement number: 2021-090

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 outbound investment

1. The basic situation of foreign investment

Anhui Jiangnan Chemical Co., Ltd. (hereinafter referred to as "the Company" or "the Company") in order to deeply implement the concept of high-quality development, in line with the development trend of low-carbon. The company actively explores the innovative business model of wind farms and photovoltaic power plants, and as of the disclosure date of this announcement, the company has a cumulative installed capacity of about 960,000 kilowatts. According to the company's new energy industry development strategy, Jiuquan Dunan New Energy Co., Ltd. (hereinafter referred to as "Jiuquan Dunan New Energy"), a subsidiary of Zhejiang Dunan New Energy Development Co., Ltd. (hereinafter referred to as "Zhejiang Dunan New Energy"), a wholly-owned subsidiary, intends to invest in the construction of the 100MW project north of Area C of the Eighth Wind Farm of Guazhou North Bridge in Gansu Province, with a total investment of 627.9 million yuan.

2. The board of directors deliberates and votes

At the seventh meeting of the sixth board of directors held on October 13, 2021, the Company unanimously passed the "Proposal on the Wholly-Owned Subsidiary's Capital Increase to Its Subsidiaries and Investment in the Construction of Wind Farm Projects" by 9 votes in favor, 0 votes against and 0 abstentions. It was agreed that Zhejiang Dunan New Energy Development Co., Ltd. would increase the capital of Jiuquan New Energy by 125.58 million yuan with its own funds, and Jiuquan New Energy would lend 502.32 million yuan to the bank for the 100MW project north of Area C of the Eighth Wind Farm of Guazhou North Bridge in Gansu Province.

According to the relevant provisions of the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange and the Articles of Association of the Company, the outbound investment matters need to be submitted to the company's shareholders' general meeting for consideration.

This matter does not constitute a related party transaction of the company and is not a major asset restructuring matter stipulated in the Measures for the Administration of Material Asset Restructuring of Listed Companies.

Second, the basic situation of the investment target

1. Overview of investment entities

(1) Company name: Jiuquan Dunan New Energy Co., Ltd

(2) Residence: No. 117, Yuanquan Street, Yuanquan Town, Guazhou County, Jiuquan City, Gansu Province

(3) Legal representative: Guo Weijia

(5) Registered capital: 3 million yuan

(6) Business scope: production and sales of clean energy such as wind power generation, photovoltaic power generation, and solar thermal power generation (projects that require approval according to law and business activities can only be carried out after approval by relevant departments)

(7) Jiuquan New Energy is not a judgment defaulter.

2. The main situation of investment projects

In December 2015, Zhejiang Dunan New Energy registered jiuquan dunan new energy to carry out the 100MW wind farm project of the North Bridge Wind Power Base in Guazhou County, and successfully won the 100MW project indicator. Jiuquan Dun'an New Energy has successively completed the examination and approval and verification of cultural relics, forestry, grassland, military, planning, cladding ore, environmental impact assessment, stability assessment, land use description, etc., and obtained approval opinions. In July 2016, the National Energy Administration issued a red warning document for wind power, issued a red warning notice to Gansu and other places, affected by the policy, all projects in Jiuquan Base suspended relevant procedures, jiuquan Dun'an New Energy Guazhou North Bridge Eighth Wind Farm Area North 100MW wind power project also suspended the project can not be built.

In January 2021, under the premise that the red warning for wind power was lifted, the Jiuquan Municipal Government requested the restart of the Second Phase II 2 million kilowatt project of the Jiuquan-Hunan UHVDC transmission project. On January 14, 2021, the Jiuquan Municipal People's Government issued the "Reply on the Approval of the Initiation Plan for the Second Phase of the Jiuquan-Hunan UHVDC Transmission Project supporting the Transmission of Wind Power to Hunan 2 million kilowatts" (Jiuzheng Letter [2021] No. 14), and the project has the conditions for restart.

For the investment and construction of the project, Jiuquan DunAn New Energy commissioned China Power Construction Group Northwest Survey, Design and Research Institute Co., Ltd. to compile the project feasibility study report, and issued the "Gansu Guazhou North Bridge Eighth Wind Farm Area C North 100MW Project Feasibility Study Report" The basic situation of the project is as follows:

(1) The site area is located on the Gobi Desert about 37 km northeast of Guazhou County in Jiuquan Region and about 103 km northwest of Yumen Town, the wind farm is high in the north and low in the south, and the altitude of the site area is between 1500m and 1550m, the field is open and the terrain is relatively flat.

(2) Jiuquan area is located at the western end of the Hexi Corridor in Gansu Province, which is the most abundant area of wind energy resources in Gansu Province, and Guazhou County in the territory is known as the "World Wind Bank". According to the wind measurement data currently available, the area of the North Bridge is dominated by east wind or partial east wind, and the prevailing wind direction is stable. Wind farm 100m height annual effective wind speed (3m/s ~ 25m/s) hours of 8140h, wind speed frequency is mainly concentrated in 3m/s ~ 12m/s, less than 3m/s and more than 25m/s invalid wind speed is less, no destructive wind speed, can generate electricity throughout the year, has good development potential.

(3) The project covers an area of about 18.7km2, and is designed to install 25 sets of wind turbines with a single capacity of 4000kW and corresponding box transformers, road engineering, collector lines, a monitoring center and a shared 330kV booster station, with a total installed capacity of 100MW.

(4) The total static investment (including the investment in the booster station and the apportionment of the public part) of the wind farm project is 616.0249 million yuan, the dynamic total investment (including the investment in the booster station and the apportionment of the public part) is 627.8906 million yuan, the static investment per kilowatt is 6,160.25 yuan/kW, and the dynamic investment per kilowatt is 6,278.91 yuan/kW。

(5) According to the feed-in tariff of 0.2850 yuan / kWh, the investment recovery period is 10.2 years, the total investment rate of return is 5.69%, and the project is financially feasible and has certain profitability.

Third, the purpose of foreign investment, the impact on the company and the existing risks

1. The Renewable Energy Law of the People's Republic of China has clearly stated that "the State encourages and supports non-fossil energy sources such as wind, solar, hydro, biomass and marine energy to generate electricity on the grid". Wind energy is a clean, renewable energy, the development of wind energy in line with the national environmental protection, energy conservation policy, the development and construction of wind farms can effectively reduce the consumption of conventional energy, especially coal resources, to protect the ecological environment. It is in response to the development requirements of the national "carbon peak carbon neutrality" strategy and the company's new energy industry planning.

2. The project construction is in line with the company's new energy development strategy and realizes the development of wind power scale。 After the project is completed and put into operation, it is expected to achieve certain economic benefits and have a certain role in improving the company's future operating performance.

3. The company's investment in the construction of the wind power project needs to be submitted to the company's shareholders' general meeting for deliberation and approval。 The company will fulfill the information disclosure obligation in a timely manner according to the progress of the project in accordance with the relevant regulations, and investors are kindly requested to pay attention to the investment risks.

4. Documents for reference

1. Feasibility Study Report of 100MW North 100MW Project of Area C of the Eighth Wind Farm of Guazhou North Bridge in Gansu Province;

2. "Reply on the Approval of the Start-up Plan for the Second Phase of the Phase II 2 Million Kilowatts Project of the Jiuquan to Hunan UHVDC Transmission Project" (Jiuzheng Letter [2021] No. 14).

This is hereby announced

Board of Directors of Anhui Jiangnan Chemical Co., Ltd

2October 14, 2020

Stock code: 002226 Stock abbreviation: Jiangnan Chemical Announcement number: 2021-089

Anhui Jiangnan Chemical Co., Ltd

About the company intends to sign with Bing Industrial Finance Co., Ltd

Announcements of financial services agreements and related party transactions

I. Overview of Related Party Transactions

1. Anhui Jiangnan Chemical Co., Ltd. (hereinafter referred to as "the Company") In order to reduce financing costs and financing risks, and provide financial support and smooth financing channels for the long-term development of the Company, the Company intends to sign the Financial Services Agreement with BingGong Finance Co., Ltd. (hereinafter referred to as the "Finance Company"), and the Finance Company will provide deposits, settlements, entrusted financial management, credit and other businesses approved by the China Banking Regulatory Commission for the Company and its subsidiaries.

2. The financial company is a holding subsidiary of the actual controller of the company, China North Industries Group Corporation (hereinafter referred to as "Ordnance Industry Group"), and in accordance with the provisions of the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange, the company and the financial company belong to the related party relationship controlled by the same legal person, Ordnance Industry Group, and this transaction constitutes a related party transaction.

3. The seventh meeting of the sixth board of directors of the company deliberated and passed the "Proposal on the Proposed Signing of the < Financial Service Agreement > and Related Party Transactions with Bing Gong Finance", "The Proposal on the Risk Assessment Report of Bing Gong Finance Co., Ltd." and the "Proposal on the Emergency Disposal Plan for The Risk of Related Deposits and Loans in Bing Gong Finance Co., Ltd.", and the affiliated directors Wu Zhenguo, Li Hongwei, Guo Xiaokang and Fang Xiao recused themselves from voting. The related party transaction has been approved in advance by all independent directors and an independent opinion has been expressed.

According to the Listing Rules of the Shenzhen Stock Exchange and the Articles of Association of the Company, the related party transaction is subject to the approval of the shareholders' general meeting, and the related party with an interest in the related party transaction will recuse themselves from the shareholders' meeting

decide.

4. The related party transaction does not constitute a major asset restructuring as stipulated in the Measures for the Administration of Material Asset Restructuring of Listed Companies.

2. Basic information of related parties

(1) The basic situation of the financial company

1. Enterprise name: Bing Industrial Finance Co., Ltd

2. Unified social credit code: 91110000100026734U

3. Type of enterprise: Other limited liability companies

4. Legal representative: Qiu Jiang

5. Date of establishment: June 4, 1997

6. Registered capital: RMB 6,340,000,000.00 million

7. Registered address: No. 19, Qingnian Hunan Street, Andingmen, Dongcheng District, Beijing

8. Business scope: financial and financing consulting, credit appraisal and related consulting and agency business for member units, assist member units to realize the receipt and payment of transaction funds, approved insurance agency business, provide guarantees to member units, handle entrusted loans and entrusted investments between member units, handle bill acceptance and discounting for member units, handle internal transfer settlement between member units and corresponding settlement and liquidation plan design, absorb deposits from member units, and handle loans and financial leases for member units Engaged in interbank lending, equity investment in financial institutions, investment in securities, underwriting corporate bonds of member units, issuing financial corporate bonds upon approval, consumer credit, buyer's credit and financial leasing of member unit products, and carrying out centralized management of foreign exchange funds and spot settlement and sale of foreign exchange business (including their own settlement and sale of foreign exchange and settlement and sale of foreign exchange to member units). (Market entities independently choose business projects and carry out business activities in accordance with law; projects that require approval in accordance with law shall carry out business activities in accordance with the approved content after approval by relevant departments; and must not engage in business activities of projects prohibited and restricted by national and municipal industrial policies.) ）

9. Financial institution code: L0012H211000001

10. Major shareholders: China North Industries Group Co., Ltd., China North Industries Corporation.

11. The latest audited financial data: At the end of 2020, the total assets of the financial company were 158,370,275,900 yuan, the total liabilities were 144,654,683,200 yuan, the net assets were 13,715,592,700 yuan, the net profit in 2020 was 598,091,900 yuan, and the total comprehensive income for the whole year was 575,420,400 yuan.

12. The financial company is not a judgment defaulter.

(2) The actual controller - the Ordnance Industry Group

1. Enterprise name: China North Industries Group Co., Ltd

2. Unified social credit code: 91110000710924910P

3. Type of enterprise: Limited liability company (wholly state-owned)

4. Legal representative: Jiao Kaihe

5. Date of establishment: June 29, 1999

6. Registered capital: RMB 38,300,000,000

7. Registered address: No. 46, Sanlihe Road, Xicheng District, Beijing

8. Business scope: development, design, manufacture and sales of tank armored vehicles, artillery, rockets, rockets, missiles, artillery shells, gunshots, bombs, aviation bombs, depth charges, fuses, pyrotechnics, explosives, propellants, warheads, fire control and accusation equipment, individual weapons, civilian firearms and ammunition, investment and operation management of state-owned assets, night vision equipment, optical products, electronic and optoelectronic products, engineering blasting and chemical defense equipment and simulation training equipment, vehicles, instrumentation, fire fighting equipment, environmental protection equipment, Development, design, manufacture and sales of engineering and construction machinery, information and communication equipment, chemical materials (except dangerous goods), metallic and non-metallic materials and their products, engineering building materials, equipment maintenance, investment management of civil blasting equipment enterprises, cargo warehousing, engineering survey and design, construction, contracting, supervision, equipment installation, domestic exhibition, breeding industry, aquaculture industry operations, deep processing of agricultural and sideline products, technology development, technology transfer, technical consulting, technical services, import and export business related to the above business Contracting overseas industrial projects and domestic international bidding projects. (Market entities independently choose business projects and carry out business activities in accordance with law; projects that require approval in accordance with law shall carry out business activities in accordance with the approved content after approval by relevant departments; and must not engage in business activities of projects prohibited and restricted by national and municipal industrial policies.) ）

(3) An explanation of what kind of specific relationship is constituted.

Both the Company and the Ordnance Finance Company are subsidiaries of the Ordnance Industries Group, the same controller.

3. The basic situation of the subject matter of the related party transaction

The finance company will provide deposits, settlements, entrusted wealth management, credit and other businesses approved by the China Banking Regulatory Commission for the company and its subsidiaries. Among them, during the validity period of the agreement, the company and its subsidiaries entrust the financial company with the amount of financial management not exceeding 500 million yuan / year; the maximum daily balance of the monetary funds deposited is 2.8 billion yuan; the total amount of loans, bills and other forms of credit does not exceed 2 billion yuan, and the financial company will examine and approve each business according to the company's application.

4. Pricing policy and pricing basis of the transaction

According to the financial policy of the People's Bank of China for the same period, see "Agreement Content".

5. The main content of the transaction agreement

Party A: Bing Industries Finance Co., Ltd

Party B: Anhui Jiangnan Chemical Co., Ltd

Article 1 Service Content and Fees

1. Deposit service:

Party A provides deposit services to Party B, and the deposit interest rate is provided with preferential interest rate deposit services under the condition that the interest rate policy of Chinese Bank is met.

Party A will strictly implement the relevant policies of the China Banking and Insurance Regulatory Commission for non-bank financial institutions, and implement special account management for Party B's deposit and loan business to ensure the safety of Party B's funds.

2. Loan business:

During the validity period of this Agreement, upon the application of Party B and its subsidiaries, Party A has the right to provide loan services to Party B and its subsidiaries at its own discretion and in accordance with the separately concluded loan agreement (which sets out the terms and conditions of the loan). The conclusion of a separate loan agreement shall comply with the requirements of the Stock Exchange Listing Rules. The interest rate of the loan charged by Party A shall not be higher than the basic interest rate (LPR) of the loan for the same period announced by the Chinese Minmin Bank; not higher than the same grade loan interest rate obtained by Party B in other domestic financial institutions; nor higher than the loan interest rate of the same grade listed in the financial company by other member units of the Ordnance Industry Group in the same period.

3. Settlement business:

Party A provides settlement business services for Party B and its affiliated companies, including the settlement of funds between Party B and its affiliated companies and Ordnance Industry Group Corporation and its member units, assisting Party B and its affiliated companies in receiving and paying transactions with other parties other than Ordnance Industry Group and its member units, and other settlement businesses within the business scope of Party A that comply with relevant laws and regulations, and the settlement business expenses are generally borne by Party A, such as when collected from Party B, it should not be higher than the settlement fee standard obtained by Party B in the general commercial bank. And it is not higher than the settlement fee standard provided by A to other member units of the Ordnance Industry Group.

4. Bill business:

During the validity period of this Agreement, according to the application of Party B and its subsidiaries, Party A may provide bill-type financial services to Party B and its subsidiaries, including but not limited to banker's acceptance drafts, commercial acceptance drafts, bill discounting, comprehensive bill management and other related businesses. The fee level shall be determined by the two parties through consultation, but shall not be higher than the price standard of the same grade obtained by Party B in the general commercial bank for the same period.

5. Entrusted wealth management business:

During the validity period of this Agreement, upon the application of Party B and its affiliated company, Party A provides Party B with short-term wealth management business with a period of 3-12 months, and at present, in accordance with the requirements of the Beijing Banking and Insurance Regulatory Bureau and the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (Yinfa [2018] No. 106), the special financial management model of "separate account management, independent accounting, and self-financing" is adopted, and the investment in standardized financial products such as stocks and bonds in accordance with the underlying asset penetration management principle is a floating income variety, which is implemented" Net worth" management, does not provide a commitment to guaranteed principal and guaranteed income, and determines investment income based on actual management performance. During the validity period of the agreement, Party A shall provide Party B with entrusted financial services of no more than RMB 500 million per year, and the yield of entrusted financial management shall be determined according to the change of market price level.

6. Other services

Upon Party B's application, in order to meet Party B's business needs, Party A provides Party B with other financial services including but not limited to comprehensive fund management business, entrusted loan business, guarantee business, financial and financing advisory business, foreign exchange settlement and sale business, etc., and the service fee is not higher than the price standard of the same type of business obtained by Party B in the general commercial bank.

Article 2 The daily deposit balance of Party B and its subsidiaries in Party A's account shall not exceed RMB 200 million, and the loan balance shall not exceed RMB 200 million.

Party B expects to provide Party A with a total amount of RMB200 million in loans, notes and other forms of credit to party A each year in the next three years. Party A will examine and approve each business according to Party B's application.

Article 3 Party B and its affiliated companies have the right to decide whether to accept the above services provided by Party A based on the principle of maximizing the interests of shareholders in combination with their own interests, and also have the right to choose the services provided by other financial institutions.

Article 4 Under the premise of complying with the provisions of laws, regulations and regulatory policies, Party A shall ensure the safety of Party B's deposit funds. Due to the requirements of laws, regulations or regulatory policies, as well as other force majeure events, Party A shall not be liable for the losses suffered by Party B as a result. In the event of an emergency in which payment difficulties arise, the Ordnance Industry Group shall increase the corresponding capital according to the actual needs of solving the payment difficulties.

Article 5 This Agreement shall enter into force after being signed and stamped by the legal representatives or authorized representatives of Party A and B, and is deliberated and approved by the board of directors and shareholders' general meeting of Party B.

Article 6 This Agreement shall be valid for three years, calculated from the date of entry into force of the Agreement.

6. Risk assessment

In order to minimize the risk of this related party transaction, Fong's certified public accountants (special general partnership) assessed the risk of the financial company. It also issued the "Risk Assessment Report of The Military Industry Finance Co., Ltd.", holding that the Military Industry Finance Company has a legal and valid "Financial License" and "Enterprise Legal Person Business License", has good operating performance, and has not found that the Military Industry Finance Company has violated the provisions of the "Measures for the Administration of Enterprise Group Financial Companies" promulgated by the China Banking Regulatory Commission.

7. Purpose of the transaction and impact on listed companies

As a non-bank financial institution approved by the China Banking and Insurance Regulatory Commission, the finance company has various qualifications to provide financial services to the member units of the enterprise group, and all the indicators meet the provisions of the Measures for the Administration of Enterprise Group Financial Companies. When the financial company handles deposits, credit, bills, settlement and other financial services for the company, the two sides follow the principles of equality and voluntariness, complementary advantages, mutual benefit and win-win cooperation, which is conducive to improving the efficiency of the company's use of funds, reducing financing costs and financing risks, providing financial support and smooth financing channels for the company's long-term development, and reducing the company's financial expenses and capital costs to a certain extent, which will not harm the interests of the company and minority shareholders.

8. The total amount of various related party transactions that have occurred with the related party from the beginning of the year to the disclosure date

In September 2021, the Company completed the asset purchase transaction by issuing shares and acquiring 100% of the equity of North Blasting Technology Co., Ltd. (hereinafter referred to as "North Blasting"), 49% of the equity of North Mining Service Co., Ltd., 49% of the equity of North Mining Investment Co., Ltd., 65% of the equity of Shaanxi Qinghua Automobile Safety System Co., Ltd. (hereinafter referred to as "Qinghua Automobile"), and 90% of the equity of Guangxi Jinjianhua Civil Blasting Equipment Co., Ltd. (hereinafter referred to as "Guangxi Jinjianhua"). The various types of related party transactions that have occurred between the above-mentioned enterprises and the related party from the beginning of 2021 to the end of September 2021 are as follows:

Unit: Meta

In addition to the newly acquired holding subsidiaries mentioned above, as of the disclosure date of this announcement, the Company has accumulated RMB0 billion in the deposit account of the financial company, and has borrowed a total of RMB200 million in short-term loans from the finance company during the year, accumulatively repaying short-term loans of RMB000 million; the Company has no long-term loans in the financial company.

9. Measures for listed companies to ensure the safety of funds and flexible scheduling

In order to ensure the safety and flexible scheduling of funds of the company and its subsidiaries in the financial company, the company formulated the "Anhui Jiangnan Chemical Co., Ltd. in the Arms Finance Co., Ltd. related deposits and loans risk disposal plan". Through the establishment of a risk prevention and disposal leading group, the establishment of a risk reporting system, timely acquisition and analysis of the financial company's regular financial reports, audit reports, risk assessment reports, etc. If there is a major risk, the company will immediately start the emergency disposal procedure and immediately hold a joint meeting with the financial company to jointly seek solutions to ensure the safety of the company's funds.

10. Prior approval and independent opinion of independent directors

(1) Prior approval opinions of independent directors

1. The company intends to sign a financial service agreement with BingGong Finance Co., Ltd. in accordance with the principles of openness, fairness and justice, and conducts transactions according to the principles of voluntariness, equality, mutual benefit, and the pricing is fair, and the implementation of the above-mentioned related party transactions is conducive to the sustainable and benign development of the company and does not affect the independence of the company.

2. Agree that the company and Bing Industry Finance Co., Ltd. signed the "Financial Service Agreement", and agree to submit the matter to the seventh meeting of the sixth board of directors of the company for consideration.

(2) Opinions of independent directors

1. As a normative non-bank financial institution approved by the China Banking and Insurance Regulatory Commission, Bing Industries Finance Co., Ltd. provides financial services for the company and its subsidiaries within its business scope in accordance with the relevant laws and regulations of the state.

2. The signing of a financial service agreement between the company and BingGong Finance Co., Ltd. constitutes a related party transaction, which follows the principles of openness, fairness and justice, and is traded according to the principles of voluntariness, equality and mutual benefit, the pricing is fair, and the implementation of the related party transaction is conducive to the sustainable and benign development of the company and does not affect the independence of the company.

3. When the board of directors of the company deliberates on this proposal, the affiliated directors have recused themselves from voting, and the deliberation procedure complies with the relevant laws and regulations and the provisions of the company's articles of association, and there is no harm to the interests of the company and its shareholders, especially the minority shareholders.

4. Agree that the company and Bing Gong Finance Co., Ltd. signed the "Financial Service Agreement" and agree to submit the proposal to the company's shareholders' general meeting for consideration.

11. Verification opinions of independent financial advisers

After verification, Haitong Securities, an independent financial adviser, believes that the related party transaction has been deliberated and approved by the board of directors of the company, the affiliated directors have recused themselves from voting, the independent directors have made prior approval and issued independent opinions, and the transaction still needs to be submitted to the shareholders' general meeting for deliberation and approval, which meets the requirements of relevant laws and regulations such as the Company Law, the Rules for the Listing of Stocks on the Shenzhen Stock Exchange, the Guidelines for the Standardized Operation of Listed Companies on the Shenzhen Stock Exchange, and the provisions of the Articles of Association of the Company. There is no harm to the interests of the company and its shareholders, especially the interests of small and medium-sized shareholders. The independent financial adviser has no objection to the listed company's proposed financial services agreement and related party transaction with BingGong Finance Co., Ltd.

12. Documents for reference

1. Resolution of the seventh meeting of the sixth board of directors of the company.

2. Prior approval opinions and independent opinions of independent directors.

3. Financial service agreements.

4. Business license of Bing Industrial Finance Co., Ltd.

5. Financial license of Bing Industrial Finance Co., Ltd.

6. Lixin Certified Public Accountants (Special General Partnership) issued the Risk Assessment Report of Bing Gong Finance Co., Ltd.

7. Anhui Jiangnan Chemical Co., Ltd. in the Military Finance Co., Ltd. related deposits and loans risk disposal plan.

8. "2020 Audit Report" of Bing Industries Finance Co., Ltd.

9. Verification opinion of Haitong Securities Co., Ltd. on the independent financial adviser verification opinion of Anhui Jiangnan Chemical Co., Ltd. and BingGong Finance Co., Ltd. on the financial service agreement and related party transactions.

Stock code: 002226 Stock abbreviation: Jiangnan Chemical Announcement number: 2021-092

Anhui Jiangnan Chemical Co., Ltd. about the convening

Notice of the Fourth Extraordinary General Meeting of Shareholders in 2021

The seventh meeting of the sixth board of directors of Anhui Jiangnan Chemical Co., Ltd. (hereinafter referred to as the "Company" or "the Company") was held on October 13, 2021, and the meeting decided to convene the fourth extraordinary general meeting of shareholders of the company in 2021 on October 29, 2021, and the relevant matters of the shareholders' meeting are hereby notified as follows:

1. The basic situation of convening a meeting

1. Session: 4th Extraordinary General Meeting of Shareholders in 2021

2. Convener of the meeting: the board of directors of the company

3. Legitimacy and compliance of the meeting: The seventh meeting of the sixth board of directors of the company deliberated and passed the "Proposal on Convening the Fourth Extraordinary General Meeting of Shareholders in 2021", and the convening of the shareholders' meeting complied with the relevant laws, administrative regulations, departmental rules, normative documents and the company's articles of association.

4. Time of the meeting:

(1) The on-site meeting will be held at 14:00 on October 29, 2021 (Friday).

(2) Online voting time: October 29, 2021; among them, the specific time for online voting through the Shenzhen Stock Exchange trading system is: 9:15-9:25, 9:30-11:30 and 13:00-15:00 on October 29, 2021; the specific time for online voting through the Internet voting system of the Shenzhen Stock Exchange is any time from 9:15 a.m. to 15:00 p.m. on October 29, 2021.

5. Method of convening the meeting: The company will provide the company's shareholders with a voting platform in the form of a network through the Shenzhen Stock Exchange trading system and the Internet voting system, and the company's shareholders can exercise voting rights through the above system during the above network voting time. Shareholders of the company can only choose one of the voting methods of on-site voting and online voting, and the voting result shall be subject to the first valid voting result.

6. Date of registration of shares: October 25, 2021 (Monday)

7. Participants:

(1) Shareholders of the Company registered with the Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. as of the close of business on the afternoon of October 25, 2021 shall have the right to attend the Shareholders' Meeting and participate in the voting in the manner published in this Notice; shareholders who are unable to attend the on-site meeting in person for any reason may appoint a written proxy to attend the meeting and participate in the voting, and the shareholder agent need not be a shareholder of the Company.

(2) Directors, supervisors and senior management of the company.

(3) Lawyers hired by the company.

8. Meeting place: Company conference room (Address: 17th floor, Block A, Building J2, Innovation Industrial Park, Phase II, Innovation Industrial Park, No. 2800 Innovation Avenue, High-tech Development Zone, Hefei, Anhui Province)

II. Matters to be considered at the Meeting:

Motion 1: Proposal on Change of Accounting Firm;

Proposal 2: Proposal on the Proposed Signing of a < Financial Services Agreement with Bing Engineering Finance Co., Ltd. > and Related Party Transactions;

Proposal 3: Proposal on Wholly-Owned Subsidiaries' Capital Increase to Their Subsidiaries and Investment in the Construction of Wind Farm Projects;

Proposal 4: Proposal on Changing the Registered Capital and Amending the articles of association of the < >.

The above proposals have been deliberated and approved by the sixth and seventh meetings of the sixth board of directors of the company respectively, and the specific content is detailed in the relevant announcements published by the company in Securities Times, China Securities News, Securities Daily, Shanghai Securities News and Juchao Information Network.

The above-mentioned proposals 1 and 2 are major matters involving the interests of small and medium-sized investors, and the company will count the votes of small and medium-sized investors separately. Minority investors refer to shareholders other than directors, supervisors, senior management personnel and shareholders who individually or collectively hold more than 5% of the company's shares.

Proposal 2 relates to related party transactions, and related shareholders are required to recuse themselves from voting.

Proposal 4 is a special proposal and shall be passed by more than 2/3 of the voting rights held by shareholders (including shareholders' proxies) present at the general meeting of shareholders.

III. Proposal Coding

Table 1: Code of proposals for this shareholders' meeting:

4. Registration matters for the meeting

2. Registration method:

(1) Natural person shareholders holding their own IDENTITY cards, shareholder account cards, shareholding certificates, etc. to go through registration procedures;

(2) The legal person shareholder shall go through the registration formalities with a copy of the business license (with the official seal), the unit shareholding certificate, the legal person power of attorney and the original ID card of the attendee;

(3) The entrusted agent shall go through the registration formalities with the original ID card, the power of attorney, the securities account card of the principal and the shareholding certificate;

(4) Non-local shareholders can register by letter or fax with the above relevant documents (must be delivered or faxed to the company before 17:00 pm on October 25, 2021), and telephone registration is not accepted.

3. Registration location: Securities Investment Department of Anhui Jiangnan Chemical Co., Ltd. Letter registration address: Anhui Jiangnan Chemical Co., Ltd. Securities Investment Department, please indicate the words "shareholders' meeting" on the letter. Address: 17th Floor, Block A, Building J2, Phase II, Innovation Industrial Park, No. 2 Innovation Avenue, High-tech Development Zone, Hefei, Anhui Province, Postal Code: 230088, Fax: [phone].

4. The meeting period is half a day, and the shareholders or agents participating in the meeting are responsible for their own food, accommodation and transportation expenses.

5. Contact:

Contact: Zhang Dongsheng

Contact number: 0551-65862589

Fax:[phone]

E-mail: [email protected]

Address: Anhui Province Hefei High-tech Development Zone Innovation Avenue No. 2800 Innovation Industrial Park Phase II J2 Building A 17 floors

V. The specific operational procedures for participating in online voting

At the shareholders' meeting, shareholders can participate in voting through the Shenzhen Stock Exchange trading system and the Internet voting system (address http://wltp.cninfo.com.cn), and the specific operation process of online voting is shown in Annex 1.

6. Documents for reference

1. Resolutions of the sixth and seventh meetings of the sixth board of directors;

2. Other documents required by the Shenzhen Stock Exchange.

Notice is hereby given

Annex I:

The specific process of participating in online voting

1. Procedures for online voting

1. Voting code: 362226

2. Voting abbreviation: Jiangnan Voting

3. The proposal of this shareholders' meeting is a non-cumulative voting proposal, and the voting opinions that shareholders can fill in on the proposal are:

Agree, oppose, abstain.

4. Shareholders voting on the general proposal shall be deemed to have expressed the same opinion on all other proposals except the cumulative voting proposal. In the event of repeated voting by shareholders on the general proposal and the specific proposal, the first valid vote shall prevail. If the shareholders first vote on the specific proposal and then vote on the general proposal, the voting opinions of the specific proposals that have been voted on shall prevail, and the voting opinions of the general proposals shall prevail for other uncontested proposals; if the general proposal is voted on first, and then the voting opinions of the specific proposal shall prevail.

2. Procedures for voting through the trading system of the Shenzhen Stock Exchange

1. Voting time: Trading hours on October 29, 2021, that is, 9:15-9:25, 9:30-11:30 and 13:00-15:00.

2. Shareholders can log in to the trading client of the securities company and vote through the trading system.

3. Voting procedures through the Internet voting system of the Shenzhen Stock Exchange

1. The Internet voting system will start voting at any time from 9:15 a.m. to 15:00 p.m. on October 29, 2021.

2. For shareholders to vote online through the Internet voting system, they need to apply for identity authentication in accordance with the provisions of the "Shenzhen Stock Exchange Investor Network Service Identity Authentication Business Guidelines (Revised in 2016)" and obtain the "Shenzhen Stock Exchange Digital Certificate" or "Shenzhen Stock Exchange Investor Service Password". The specific identity authentication process can be accessed in the Http://wltp.cninfo.com.cn Rules guidelines section of the Internet voting system.

3. The service password or digital certificate obtained by the shareholder can be registered http://wltp.cninfo.com.cn and voted through the Internet voting system of the Shenzhen Stock Exchange within the specified time.

Annex II: Power of Attorney

Letter of Delegation of Attorney

I hereby authorize Mr. (Ms.) to represent my unit (myself) to attend the 4th Extraordinary General Meeting of Shareholders of Anhui Jiangnan Chemical Co., Ltd. held on October 29, 2021, and to vote on the following proposals on behalf of my unit (I) in accordance with the following instructions. If the company/ I do not make specific instructions for the voting matters at this meeting, the trustee may exercise the voting rights on behalf of the trustee, and the consequences of the exercise of the voting rights shall be borne by our unit (myself).

Principal's name or title (signature):

Number of principal's shares:

Principal's Identity Card Number (Business License Number):

Principal Shareholder Account Number:

Trustee Signature:

Trustee's Identity Card Number:

Commission Date: Year Month Day

Limited duration of proxy: from signing to the end of this general meeting of shareholders

Remarks: The power of attorney is valid for clipping, copying or self-made in the above format; the unit entrustment must be stamped with the official seal of the unit.

Stock code: 002226 Stock abbreviation: Jiangnan Chemical Announcement number: 2021-091

Announcement on the temporary abandonment of business opportunities

China North Industries Group Co., Ltd. (hereinafter referred to as "Ordnance Industry Group"), the actual controller of Anhui Jiangnan Chemical Co., Ltd. (hereinafter referred to as "Jiangnan Chemical" or the "Company"), recently informed the Company that its subsidiary, Beijing Aoxin Chemical Science and Technology Development Co., Ltd. (hereinafter referred to as "Aoxin Chemical"), has an opportunity to obtain a civil explosion business project in the Darui Lead and Zinc Mine in Indonesia. In view of the existence of a certain competitive relationship between Aosin Chemical's production, sales and blasting services for civil explosives and the company's business, Ordnance Industry Group fulfilled the "Commitment Letter on Avoiding Competition in the Same Industry" issued by it and informed the company of the above matters in a timely manner.

After the study of the company's board of directors, the company intends to abandon the business opportunities obtained by the presence of civil explosion business in Indonesia, and the relevant matters are hereby explained as follows:

1. Overview of this business opportunity

Located in the northwest of Sumatra, Indonesia, Darry Lead and Zinc Mine is wholly owned by CNMC (Indonesia) Darry Mining Co., Ltd., a holding subsidiary of China Nonferrous Metals Construction Co., Ltd., and intends to build an on-site mixed latex matrix ground station, 3 explosives depots and 1 ammonium nitrate depot, and requires the provision of related equipment for charging hole services, with a project investment of about US$4 million. Although the model of Aosin Chemical's above-mentioned business in Indonesia is similar to the company's model of providing blasting integration services, the company does not have a business layout in Indonesia, and there is no competition between the two in the market scope.

2. Deliberations of the Board of Directors

The Company passed the "Proposal on Temporarily Abandoning Business Opportunities" by a vote of 5 votes in favor, 0 votes against and 0 abstentions at the seventh meeting of the sixth board of directors held on October 13, 2021, and the affiliated directors Wu Zhenguo, Li Hongwei, Guo Xiaokang and Fang Xiao recused themselves from voting, and the independent directors issued prior approval opinions and independent opinions on the proposal.

3. Explanation of the Board of Directors on the Company's temporary abandonment of this business opportunity

The company has no business layout in Indonesia, and has not been involved in the Indonesian civil blasting market in history, and is not familiar with the country's political, economic, cultural and other macro environments. If the company chooses to accept the business opportunities of this project, it will enable the company to carry out production and operation in an unfamiliar country and market environment, and enlarge the company's overall risk exposure. Considering the company's unfamiliarity with indonesia's macro environment and the difficulty of operating the new project, there is uncertainty in the risk and return matching of the listed company's project at this stage.

Although the business model of Aosin Chemical in Indonesia is similar to that of listed companies providing integrated blasting services, the listed companies do not have a business layout in Indonesia, and there is no competition between the two in the market. According to the commitment of Ordnance Industry Group: 1. Complete the relevant civil explosive asset injection procedure within 60 months after becoming the actual controller of the listed company, and realize the overall listing of the civil explosive assets of ordnance industry group; 2. At the expiration of the above 60-month commitment period, if both the committing party and the listed company still have civil explosive business, the undertaking party will actively promote the transfer of the relevant civil explosive assets to other unrelated third parties at a reasonable price and manner, take the initiative to stop operating such civil explosive business, and cancel the entity operating such civil explosive business to ensure that the undertaking party is no longer engaged in business that constitutes competition with the listed company.

At this stage, the company abandons the business opportunities of the Indonesian project, and the project is implemented and cultivated by Aoxin Chemical, and in accordance with the commitment of the North Industries Group, its subordinate civil explosive assets will be injected into Jiangnan Chemical in the future to eliminate the business that constitutes competition with the listed company.

In accordance with the Letter of Commitment on Avoiding Competition in the Same Industry, Ordnance Industry Group has issued a "Notification Letter from China North Industries Group Co., Ltd. on the Existence of Project Opportunities in Indonesia by Beijing Aoxin Chemical Science and Technology Development Co., Ltd." to the Company, and proposed that the business opportunities can be provided to the Company on a priority basis, and the obligations in the commitment letter have been actually fulfilled and the relevant commitments have not been violated.

Fourth, temporarily abandon the impact of this business opportunity on the company

Aoxin Chemical carries out this project as an investment project that needs to be carried out by the existing competitors in the same industry due to business development, and Aoxin Chemical has the basis for carrying out and implementing the project. Based on the consideration of project benefits and risks, the company abandons the business opportunities of the Indonesian project at this stage, and the project is implemented and cultivated by Aosin Chemical, which will not adversely affect the listed company.

5. Opinions of independent directors

The independent directors of the Company have given prior approval to the matter and issued an independent opinion as follows:

The act of the Ordnance Industry Group in notifying the project of the business opportunity is in line with its relevant commitments to solve the problem of competition in the same industry; the listed company's abandonment of the business opportunity at this stage is conducive to reducing operational risks, conducive to the sustained and steady development of the company's main business, and in line with the company's operation and management needs. According to the commitment of The North Industries Group, the civil explosive assets under the Ordnance Industry Group will also be injected into Jiangnan Chemical in the future or eliminated from the business that constitutes competition with the listed company by transferring it to other unrelated third parties, voluntarily stopping the operation, canceling the main body that operates such civil explosives business, etc. The listed company will give up the business opportunity at this stage, and the project will be implemented and cultivated by Aoxin Chemical, which will not adversely affect the listed company.

When the Board of Directors of the Company deliberated on the Proposal on the Temporary Abandonment of Business Opportunities, the Affiliated Directors recused themselves from voting, and the deliberation and decision-making procedures of the above proposals complied with the provisions of laws and regulations and the Articles of Association of the Company, and we agreed with the above proposals and agreed to submit the proposal to the seventh meeting of the Sixth Board of Directors of the Company for consideration.

6. Verification opinions by independent financial advisers

After verification, Haitong Securities, an independent financial adviser, believes that:

The listed company's temporary abandonment of business opportunities has been deliberated and approved by the board of directors of the company, the affiliated directors have recused themselves from voting, and the independent directors have made prior approvals and issued independent opinions, which comply with the requirements of relevant laws and regulations such as the Company Law, the Rules for the Listing of Stocks on the Shenzhen Stock Exchange, and the Guidelines for the Standardized Operation of Listed Companies on the Shenzhen Stock Exchange, and also comply with the provisions of the Articles of Association.

The actual controller, Ordnance Industries Group, has fulfilled the relevant commitment obligations and has not violated the relevant commitments.

The independent financial adviser has no objection to the listed company's temporary abandonment of business opportunities.

7. Documents for reference

1. Resolution of the seventh meeting of the sixth board of directors;

2. The independent directors' prior approval and independent opinion on the company's temporary abandonment of business opportunities.

3. Verification Opinion of Haitong Securities Co., Ltd. on Anhui Jiangnan Chemical Co., Ltd.'s Temporary Abandonment of Business Opportunities.

This is hereby announced.

Stock code: 002226 Stock abbreviation: Jiangnan Chemical Announcement number: 2021-088

Announcement on the resolution of the seventh meeting of the sixth board of directors

The seventh meeting of the sixth board of directors of Anhui Jiangnan Chemical Co., Ltd. (hereinafter referred to as "the Company" or "the Company") was notified to the directors by e-mail and other means on October 8, 2021, and was held on October 13, 2021 in the company's conference room using on-site combined communication. The meeting should be attended by 9 directors, 9 directors actually attended, and some supervisors and senior management of the company attended the meeting as observers. The procedure for convening the meeting complies with the relevant provisions of the Company Law and the Articles of Association of the Company. The meeting was presided over by Mr. Wu Zhenguo, chairman of the board, and the following proposals were deliberated and passed:

1. Deliberated and passed the "Proposal on the Proposed Signing of a < Financial Service Agreement > and Related Party Transactions with Bing Industries Finance Co., Ltd.";

Voting result: 5 votes in favour, 0 votes against, 0 abstentions.

Associate directors Wu Zhenguo, Li Hongwei, Guo Xiaokang and Fang Xiao recused themselves from voting. The independent directors issued prior approval opinions and independent opinions on the above matters, and haitong Securities, the independent financial adviser, issued a special verification opinion.

For details, please refer to the "Announcement on the Company's Proposed Signing of a Financial Service Agreement and Related Party Transactions" (Announcement No. 2021-089) with BingGong Finance Co., Ltd. published by the Company on October 14, 2021 in Securities Times, China Securities News, Securities Daily, Shanghai Securities News and Juchao Information Network.

The proposal is to be submitted to the Company's Fourth Extraordinary General Meeting of Shareholders in 2021 for consideration.

2. Deliberated and passed the "Proposal on the Risk Assessment Report of Bing Industries Finance Co., Ltd.";

Associate directors Wu Zhenguo, Li Hongwei, Guo Xiaokang and Fang Xiao recused themselves from voting. The independent directors have expressed prior approval opinions and independent opinions on the above matters.

For details, please refer to the "Risk Assessment Report on Bing Industries Finance Co., Ltd." published by the company on the Juchao Information Network on October 14, 2021.

3. Deliberated and passed the "Proposal on the Emergency Disposal Plan for the Risks of Related Deposits and Loans in The Arms Finance Co., Ltd.";

For details, please refer to the "Emergency Disposal Plan for The Risk of Related Deposits and Loans of Anhui Jiangnan Chemical Co., Ltd. in BingGong Finance Co., Ltd." published by the company on the Juchao Information Network on October 14, 2021.

4. Deliberated and passed the "Proposal on Wholly-Owned Subsidiaries' Capital Increase to Their Subsidiaries and Investment in the Construction of Wind Farm Projects";

Voting result: 9 votes in favour, 0 votes against, 0 abstentions.

For details, please refer to the "Announcement on Wholly-Owned Subsidiaries' Capital Increase to Their Subsidiaries and Investment in The Construction of Wind Farm Projects" (Announcement No. 2021-090) published by the Company on October 14, 2021 in Securities Times, China Securities News, Securities Daily, Shanghai Securities News and Juchao Information Network.

5. Deliberated and adopted the Bill on the Temporary Abandonment of Business Opportunities;

For details, please refer to the Announcement on Temporarily Abandoning Business Opportunities (Announcement No. 2021-091) published by the Company on October 14, 2021 in China Securities News, Securities Times, Securities Daily, Shanghai Securities News and Juchao Information Network.

6. Deliberated and passed the "Proposal on Changing the Registered Capital and Amending the > of the Articles of Association of the < Articles of Association";

Agreed to change the registered capital and amend some provisions of the Articles of Association, and requested the General Meeting of Shareholders to authorize the management to complete the industrial and commercial filing of the Articles of Association approved by the Company.

For details of the "Comparison Table of Amendments to the Articles of Association of the < >" and the "Articles of Association" (amended in October 2021), please refer to the Juchao Information Network (http://www.cninfo.com.cn).

Voting result: 9 votes in favour, 0 votes against, 0 abstentions.

7. Deliberated and passed the "Proposal on Convening the Fourth Extraordinary General Meeting of Shareholders in 2021".

The Board of Directors decided to convene the Fourth Extraordinary General Meeting of Shareholders of the Company in 2021 on October 29, 2021 to consider the sixth meeting of the Sixth Board of Directors and the relevant proposals submitted by the Board of Directors.

For details, please refer to the "Notice on Convening the Fourth Extraordinary General Meeting of Shareholders in 2021" (Announcement No. 2021-092) published in Securities Times, China Securities News, Securities Daily, Shanghai Securities News and Juchao Information Network on October 14, 2021.

board of directors