Overview

(1.)Summary of related party transactions For forwarding the related party transactions is accidental related party transactions Guizhou KaiLin group co., LTD. Citic bank guarantee for company, the guaranty contract amount is 30 million yuan, since December 28, 2016 and ends on December 28, 2018.

(2.)The related party relationship is an overview of the subsidiary of guizhou kaiphosphate group co., LTD., which is the controlling shareholder of guizhou kaiphosphorus holding group co., LTD.

(3.)Vote and review Company be held on April 24, 2017, the second session of the 9th meeting of the board examined and approved the company 2016 annual related party transactions on the ratification of bill, the chairman Liao Hui, director Hu Linmei, even the green xia as association director to avoid a vote, the bill vote results: agreed to 4 tickets, against zero votes, abstained 0 votes, the bill is to be submitted to the shareholders meeting.

(4.)There is no need for the related transactions to be approved by the relevant departments.

Introduction

Correlation

Guizhou Kailin Group Co., Ltd. is a subsidiary of Guizhou Kailin Holding (Group) Co., Ltd., the controlling shareholder of the Company.

The main content of the deal

Guizhou Kailin Holding (Group) Co., Ltd., for the company's citic bank guarantee, the guarantee contract amount is 30 million yuan, from December 28, 2016 to December 28, 2018.

Pricing basis and fairness

The above related transactions are true, necessary and fair, and there is no harm to the interests of minority shareholders.

The necessity of this transaction and its impact on the company

(2.)Daily necessity and the real intention of the above related party transactions for the company related party transactions, is the company's business development and the needs of a normal production and operation, and, according to the normal market operation rules are reasonable and necessary.

(1.)The influence of the related transactions of the company The ratification of the 2016 daily connection transaction execution, in accordance with the principle of fair market price in line with the market pricing, trading process transparent, the company and related parties are equal and mutually beneficial win-win relationship, won't cause any risk to the company, there is no damage to the company and shareholders' equity, the independence of the company is not so affected.

Inventory of documents

"Resolution of the ninth meeting of the second session of the second session of the board of directors of jiangsu Kailin ruyang chemical co., LTD."