Chapter I general provisions

Article 1 In order to further improve the standard operation level of Jiangsu Kailui Ruiyang Chemical Co., Ltd.,(Hereinafter referred to as the "Company") increase the accountability of the information disclosure responsibility of the annual report, improve the quality and transparency of the annual report information disclosure, and enhance the authenticity, accuracy and completeness of the annual information disclosure (Hereinafter referred to as the "Company Law"), the Securities Law of the People's Republic of China (hereinafter referred to as the "Securities Law"), the Accounting Law of the People's Republic of China (hereinafter referred to as the "Company Law of the People's Republic of China") (Hereinafter referred to as the "China Securities Regulatory Commission") issued by the "non-listed public company supervision and management approach", the National SME Share Transfer System Co., Ltd. issued a "national small and medium enterprises (Hereinafter referred to as the "Rules for the Information Disclosure of Listed Companies") (hereinafter referred to as the "Rules for the Information Disclosure of Listed Companies"), the Rules for the Information Disclosure of Listed Companies in China's Small and Medium-sized Enterprises ), "The national small and medium enterprises share transfer system linked (Hereinafter referred to as "the annual report content and format of the listed company guidelines") and other relevant laws, regulations, rules, regulatory documents, business guidelines and "Jiangsu open phosphorus Ruiyang Chemical shares (Hereinafter referred to as the "Company Information Disclosure Management System"), and the relevant provisions of the "Articles of Association" (hereinafter referred to as the "Articles of Association"), "Jiangsu open phosphorus Ruiyang Chemical Co., Ltd. Information Disclosure Management System" The actual situation of the company, the development of the system.

Article 2 The relevant personnel of the Company shall strictly implement the Accounting Standards for Business Enterprises and the relevant regulations and strictly abide by the internal control system of the Company so as to ensure that the financial statements truly and fairly reflect the financial status of the Company. The relevant personnel of the company shall not interfere with the obstruction of the audit institution and the relevant auditors independently and objectively carry out the annual audit work

Article 3 The system referred to in this system refers to the system of reporting in the annual report of the information disclosure of the relevant personnel do not perform or improperly perform their duties, obligations and other personal reasons, resulting in significant disclosure of annual report information, to the company caused significant economic losses or significant adverse social impact Accountability and handling system.

Article 4 The system is applicable to the directors, supervisors, senior management personnel, the head of the subsidiary, the head of the branch, the department heads of the company and other personnel related to the annual report information disclosure.

Article 5 The significant errors in the disclosure of annual reports referred to in this system refer to the existence of significant accounting errors in the annual financial reports, the existence of significant errors or major omissions in other annual report disclosures, significant differences in performance forecasts or performance express reports, or the presence of securities regulatory authorities For other cases of major errors.

Specifically include:

(One).In violation of the "Accounting Law", "Accounting Standards for Business Enterprises" and the relevant laws and regulations, so that annual report information disclosure of significant accounting errors or cause significant adverse effects;

(Two).The disclosure of financial information in the notes to the financial statements is in violation of the relevant requirements of the Information Disclosure Rules, such as the Accounting Standards for Business Enterprises and the relevant explanatory provisions and the Guidelines for the Annual Report Content and Format of Listed Companies, and there are significant errors or significant omissions;

(Three).The contents and formats of other annual report disclosures do not conform to the rules and regulations such as the Guidelines for Information Disclosure of Listed Companies' Annual Report Content and Format Guidelines, the normative documents and the Articles of Association, the Company Information Disclosure Management System and other internal control systems. Regulations, there are major errors or major omissions;

(Four).Performance notice and the actual disclosure performance of the annual report there are significant differences and can not provide a reasonable explanation;

(Fives)There are significant differences between the financial data and indicators in the performance report and the actual data and indicators of the relevant periodic reports and can not provide a reasonable explanation;

(Six)There are significant errors in the disclosure of other annual reports identified by the regulatory authorities。

Article 6Where there is a material error in the disclosure of the annual report, the company shall hold the responsibility of the relevant responsible person.

When implementing accountability, the following principles should be followed:

(One).Objective and fair, the principle of seeking truth from facts;

(Two).Be responsible to ask, the principle of wrong;

(Three).Power and responsibility are relative, fault and responsibility corresponding to the principle;

(Four).The principle of combining accountability with improvement work.

Chapter 2 Identify the criteria for major errors

Article 7 Annual Financial Reporting Criteria for Significant Accounting Errors: Significant accounting errors are accounting errors that are sufficient to influence the correctness of financial statements by users of financial statements, financial results, operating results and cash flows. The importance depends on judging the size and nature of omissions or misrepresentations in the relevant context. The amount and nature of the financial statements affected by the error is a decisive factor in judging whether the accounting error is of importance. Reflected in the reporting period, major accounting errors, major omissions information supplement, performance corrections, etc., or appeared by the securities regulatory authorities as a major error in other circumstances.

Financial reporting there are significant accounting errors in the specific criteria:

(One).Accounting for assets and liabilities accounted for more than 3% of the total audited assets in the last fiscal year, and the absolute amount of more than 30 million yuan;

(Two).The amount of accounting errors involved in net assets accounted for more than 5% of the total audited net assets of the latest fiscal year and the absolute amount was over RMB 20 million;

(Three).The amount of accounting errors involved in income accounts for more than 3% of the total audited income in the most recent fiscal year and the absolute amount is more than RMB 30 million.

(Four).The amount of accounting errors involved in profits accounts for more than 20% of the audited net profit of the most recent fiscal year and the absolute amount is more than RMB 5 million;

(Fives)The amount of accounting errors directly affects the profit and loss;

(Six)If the certified public accountant has made corrections to the previous annual financial report, the amount of accounting error accounts for more than 20% of the audited net profit of the latest accounting year and the absolute amount is more than RMB 5 million.

(Seven)The supervisory authority orders the company to correct the errors in the previous annual financial report. The above data in the calculation of the index as a negative value, take its absolute value calculation.

Article 8 Other annual reports Disclosure There are significant errors or significant omissions Criteria:

(One).Disclosure of financial information in the notes to the financial statements There are significant errors or significant omissions Criteria:

（1）Disclosure of major accounting policies, changes in accounting estimates or accounting errors adjustment matters;

（2）Meet the major errors in the criteria set out in Article 7 (One) to (Seven);

（3）Involving any guarantee of more than 5% of the latest audited net assets of the Company or any guarantee provided to the Shareholders, the actual controller or its affiliates, or any other amount in the amount of more than 5% of the Company's latest audited net assets Have matter

（4）The other is enough to affect the annual report users to make the right to judge the major issues.

(Two).Other annual reports Disclosure There are significant errors or significant omissions Criteria:

（1）Involving the amount of the company's latest audited net assets of more than 10% of the major litigation, arbitration;

（2）Involving any guarantee that the amount exceeds 10% of the latest audited net assets of the Company or any guarantee provided to the Shareholders, the actual controller or its affiliates;

（3）Involving the amount of the company's latest audited net assets of more than 10% of the major contracts or foreign investment, the acquisition and sale of assets and other transactions;

（4）The other is enough to affect the annual report users to make the right to judge the major issues.

The above data in the calculation of the index as a negative value, take its absolute value calculation. Article 9 Performance notice or performance Express there are significant differences in the identification criteria:

(One).The expected changes in performance are not consistent with the actual disclosure performance of the annual report, including the following: the original expected loss, the actual profit; originally expected to profitability, the actual continued losses; originally expected net profit rose year on year, the actual net profit year on year decline; Net profit fell year on year, the actual net profit rose year on year.

(Two).Performance Forecast The expected changes in performance are consistent with the actual disclosure performance of the annual report, but the range of changes or profit and loss exceeded the original range of more than 20%.

The above data in the calculation of the index as a negative value, take its absolute value calculation.

Chapter 3 of the annual report of information disclosure major errors in the processing procedures

Article 10 If there is any significant difference in the information disclosure of the annual report, there shall be significant differences in the performance notice or performance express report. The board of directors of the company shall promptly supplement and correct the announcement and refer to the requirements of the relevant laws, regulations and normative documents. Or the reasons and effects of the amendment, and disclose the board of directors of the responsible person to take the accountability measures and the results.

Article 11 The Company has corrected the annual financial report that has been published in the previous year and needs to hire an accounting firm with securities and futures related business to audit the corrected annual financial report.

Article 12 The information disclosure that corrects the error in the financial information in the annual financial report disclosed in the previous period shall be governed by the relevant provisions of the Business Rules of the Transfer System, the Guidelines for the Content and Format of Listed Companies and the Information Disclosure Rules for Listed Companies carried out.

Chapter 4: Annual Report Information Disclosure Responsibility for Significant Errors

Article 13 In case of significant error in the disclosure of annual reports, the company shall be held accountable to the relevant personnel. Annual Report Information Disclosure Significant error liability is divided into direct responsibility and leadership responsibility.

Article 14 During the preparation of the annual report, the relevant personnel shall, in accordance with their duties, undertake the direct responsibility for the authenticity, accuracy, completeness and timeliness of the information provided by the relevant departments, and the relevant departments of the units and departments shall review the information provided by the unit and the department, And bear the corresponding leadership responsibility.

Article 15 The form of accountability:

(One).Company 's internal criticism;

(Two).Warned, ordered to make corrections and make a review;

(Three).Transferred from the original job, suspension, demotion, dismissal;

(Four).Economic penalties;

(Fives).Dismiss the labor contract.

Article 16 Annual Report Information Disclosure Major errors The results of accountability are included in the company's annual performance appraisal indicators for relevant units, departments and personnel. Article 14 The resolutions of the Board of Directors on the determination and punishment of the significant errors in the information disclosure of the annual report shall be disclosed in the form of provisional announcement.

Chapter 5:Identification of Major Errors and Responsibility Procedures

Article 17 When there are significant accounting errors in the financial report, there are significant errors or significant omissions in the other annual report information disclosure, there are significant differences in performance notice or performance express report. The board of directors of the Company shall promptly check the cause, take corresponding corrective measures and take responsibility for the relevant responsible person The The auditing and auditing department of the company shall collect and summarize the relevant information, investigate the cause of the responsibility, make the responsibility for identification, and formulate the opinions and rectification measures, submit it to the board of directors or the audit committee of the board of directors for consideration and report to the board of supervisors. The board of directors of the company made special resolutions on the proposal of the Audit Supervision Department or the Audit Committee.

Article 18 Before the board of directors of the company makes a decision on the responsible person, he shall listen to the opinions of the responsible person and guarantee the right of his statement and defense.

Chapter 6:Supplementary Provisions

Article 19 The system is not in accordance with the provisions of Article 1 of the relevant laws, regulations, normative documents and the "Articles of Association" of the relevant provisions of the implementation of the system and the country promulgated by the future laws, regulations or legal procedures to amend After the "Articles of Association" in conflict with the relevant state laws, regulations and the "Articles of Association" provisions.

Article 20 The system is designed, revised and interpreted by the Board of Directors of the Company.

Article 21The system takes effect on the date of adoption by the Board of Directors.