Dismissal of the basic situation

1.Basic information on the implementation of the Company Pursuant to the relevant provisions of the Company Law and the Articles of Association of the Company, the First Provisional Shareholders' General Meeting of 2017 examined and approved on 6 April 2017: Mr. Liu Zongjun was appointed as the second session of the Supervisory Committee Supervisors and term of office from the date of passing the resolutions of the shareholders' meeting to the expiration of the term of office of the second session of the board of supervisors. The meeting was held 15 days ago by notice to inform the shareholders, the actual shareholders to 22 people. To the people holding 237,177,560 shares of the company, accounting for 82.52% of the total number of shares, the meeting presided over by Ms. Liao Hui, chairman of the meeting. The above resolutions are as follows: Consent shares 237,177,560 shares, representing 100.00% of the total number of voting shares of the shareholders 'general meeting; 0 shares against the shares, accounting for 0.00% of the total number of voting shares of the shareholders' general meeting; Accounting for 0.00% of the total number of voting shares in this general meeting.

2. The basic situation of the supervisor The supervisor Liu Zongjun holds 0 shares of the Company, accounting for 0.00% of the Company's share capital. Mr. Liu Zongjun has not been punished by the China Securities Regulatory Commission and other relevant departments and the securities exchange disciplines, there is no "Company Law" is not suitable for the situation as a supervisor. Mr. Liu Zongjun has not been included in the list of unsuccessful joint disciplinary objects, does not belong to the object of dishonesty disciplinary, consistent with the share transfer system "on the subject of the implementation of joint disciplinary action of the regulatory response" requirements.

3. Reasons for the appointment In view of the reasons for the resignation of Mr. Wang Kai-rong's resignation from the chairman of the board of supervisors and the duties of the supervisors, the number of members of the board of supervisors is lower than the minimum number of legal members. The Company elects the new supervisors according to the requirements of the Company Law and the Articles of Association.

The effect of the appointment and removal of the above personnel on the company

1.On the number of members of the board of supervisors Mr. Liu Zongjun as a supervisor, the number of corporate supervisors to meet the "Company Law" and "Articles of Association" of the relevant provisions.

2.Impact on the Company's production and operation Mr. Liu Zongjun took over the supervisors of the Company and did not adversely affect the Company's production and operation.

Documents for reference

"Jiangsu Kailin Ruiyang Chemical Co., Ltd. 2017 the first extraordinary general meeting of shareholders"