1.Change the overview

(1.)Date: May 1, 2016

(2.)Introduced 1. Accounting policies adopted prior to the change in accounting policy prior to the change:

1.)Profit statement set up "business tax and additional" rdquo; project.

2.)The company's business activities occurred in the property tax, land use tax, travel tax, stamp duty included in the management fee.

2.Changes in accounting policies adopted after the change of accounting policies adopted: the income tax and the "business tax and additional" project adjustment for the "tax and additional" project, property tax, land use tax, travel tax, stamp duty Included in the management costs of the relevant taxes and fees, since May 1, 2016 from the adjustment included in the "tax and additional" and "rdquo ;. The tax occurred before May 1, 2016 will not be adjusted, the comparison data will not be adjusted.

3.Reason for change

According to the Circular of the Ministry of Finance on December 3, 2016 issued by the Ministry of Finance on the issuance of the Provisions on the Accounting Treatment of Value Added Taxes (Accounting [2016] No. 22), the Company implemented the above provisions on May 1, 2016.

2.Voting and deliberations

(1.)The Board of Directors examined and approved the Proposal on the Change of Accounting Policies at the 11th meeting of the second session of the Board of Directors (the Provisional Meeting) held on June 23, 2017.

(2.)Review by the Supervisory Committee At the sixth meeting of the second session of the Supervisory Committee held on June 23, 2017, the Company examined and approved the Proposal on Changes in Accounting Policies.

3.Notice of the Board of Directors on the reasonableness of the change of accounting policy

The Board of Directors considered that the change of the accounting policy of the Company was in accordance with the relevant provisions and the actual situation of the Company in accordance with the requirements of the Accounting Department for Value Added Tax Accounting (Accounting [2016] No. 22), and its decision-making procedures were in compliance with relevant laws, administrative regulations and articles of association The relevant provisions, there is no damage to the interests of the company and small and medium shareholders.

4.Opinions of the Board of Supervisors on the changes in this accounting policy

The Company changed the original accounting policies and related accounting subjects according to the requirements of the Ministry of Finance's "Value-added Tax Accounting Regulations" (Accounting [2016] No. 22), conforms to the relevant regulations and the actual situation of the Company, and its decision-making procedures comply with relevant laws and companies The relevant provisions of the articles of association, there is no damage to the interests of the company and small and medium shareholders situation. Therefore, the company agreed to change the accounting policy.

5.The impact of this change in accounting policy on the company

Will be the income statement in the "business tax and additional" project adjusted to "tax and additional" and "rdquo; project. The property tax, land use tax, travel tax, stamp duty from the business activities of the enterprise business activities from May 1, 2016 will be reclassified from the "& nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; 1 day before the taxes and fees will not be adjusted, the comparison data will not be adjusted.

6.Documents for reference

(1.)Jiangsu Kailin Ruiyang Chemical Co., Ltd. The second session of the Board of Directors (provisional meeting) resolution;

(2.)Jiangsu Kailin Ruiyang Chemical Co., Resolution of the 6th Meeting of the Second Board of Supervisors.