A.Summary of Daily Connected Transactions

(1)Voting and review of daily connected transactions On March 20, 2017, the 8th meeting of the 2nd Board of Directors of the Company examined and approved the Proposal on the Report on the Daily Reliable Transactions of the Company for the Year 2017. Voting results: Consent vote 6 votes; 0 votes against; 0 votes abstained; vote 1 vote, the director Mr. Liu Quan as an associated director to avoid the vote. Proposal to be submitted to the Shareholders 'General Meeting: This motion is still subject to consideration by the Shareholders' General Meeting.

(2)The basic situation of daily transaction is expected

1, Associated sales

2, Associated procurement

3, Associated leasing

Lease Description:

Party A: Guizhou Kailin diuretic synthetic ammonia limited liability company B: Guizhou Kailin Ruiyang New Materials Co., Ltd.

The subject matter: Party 's pentaerythritol plant

Lease Term: The installation leased from January 1, 2016 to Party B to terminate the lease contract only, the latest no more than December 31, 2017.

Rental payments: The rent is calculated on the basis of the actual production of pentaerythritol (the sum of bis-pentaerythritol and monopentaerythritol) at 1,000 yuan per ton. Rent = 1000 yuan × actual output.

The rental pricing is based on the company's net profit margin, the reference to the company's related taxes and fees, based on strategic layout, as soon as possible to open up the Southwest market and other factors to consider.

4, Associated guarantee

The existence of the related party transactions need to be approved by the relevant departments: No

B.Related party introduction 

Related party basic situation

Connection relation

Guizhou Kailin holding (Group) Co., Ltd. is the controlling shareholder of the Company; Xifeng Kailin chemical equipment engineering limited liability company, interest rate Kailin forest services limited liability company, Guizhou Kailin diuretic synthetic ammonia limited liability company, Guiyang Kailin Fertilizer Co., Ltd., Xifeng Kailin plastic packaging limited liability company, Guizhou Kailin Zunyi Soda Plant, Guizhou Kailin International Trade Co., Ltd., Guizhou Kailin quality testing center limited liability company, Guizhou Kailin Agricultural Development Co., Ltd., Guizhou Kailin Group Mineral Fertilizer Co., Ltd. is owned or owned subsidiary of Guizhou Kailang Holding (Group) Co., Ltd. Guizhou Guiyang New Material Co., Ltd. is a subsidiary of the Company; Chifeng Ruiyang Chemical Co., Ltd., Ltd. is a subsidiary of Chifeng Ruiyang Chemical Co., Ltd., Mr. Liu Quan is a director of the Company, and Liu Xingju is a member of the Company. The company is a subsidiary of Chifeng Ruiyang Chemical Co., Ltd., Mr. wife's wife.

C.The main content of the related transaction

In the expected amount of 2017 within the scope of the company management, according to business needs to implement.

D.Pricing basis and fairness

Related sales, procurement and leasing in accordance with the principle of market-oriented, fair pricing; related guarantee is to support the financing of the Company to develop production and operation, there is no damage to the interests of small and medium shareholders.

F.The necessity of related party transactions and the influence on the company

(1).Necessity and True Intent The above related transactions are the daily transaction of the Company, which is the normal requirement of the business development and production and operation of the Company and is reasonable and necessary according to the normal market rules.

(2).The impact of the related transaction on the company The above-mentioned 2017 annual routine transactions will be carried out in accordance with the principle of fairness, the transaction price in line with market pricing, transparent trading process, the company and the parties are mutually beneficial win-win relationship, will not cause the company Any risk, there is no damage to the company and shareholders of the situation, the company's independence has not been affected.

E.Documents for reference

"Jiangsu open phosphorus Ruiyang Chemical Co., Ltd. The second board of directors of the eighth meeting of the resolution"