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Announcement on the Subsidiary's Receipt of the Decision of the Environmental Protection Department Ordering to Stop Production and Remediation

Release time:

2020-08-05

Securities Code: 600668 Securities Abbreviation: Jianfeng Group Announcement No.: 2018-020

Bond Abbreviation: 13 Jianfeng 02 Bond Code: 122344

Zhejiang Jianfeng Group Co., Ltd.

Announcement

of the Company's Board of Directors and all directors guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and shall bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents

Recently, Anhui Xinbeika Chemical Co., Ltd. (hereinafter referred to as "Anhui Beika"), a subsidiary of the company, received the Dongzhi County Environmental Protection Bureau's "Decision on Ordering Suspension of Production and Rectification" (

Donghuan Zit [2018] No. 04), the main contents are hereby announced as follows:

1. the contents of the "Decision on Ordering to Stop Production and Rectification"

(I) Investigation and Findings of Environmental Violations

After investigation by our bureau, it is found that your company has implemented the following environmental violations: "Your company's annual output of 500

tons of acetamiprid is in production, and the valve of the gas outlet pipeline of the activated carbon adsorption tank of the waste gas treatment facility in the 201 workshop is closed, the waste gas in the tank overflows from the outlet of the sewage pipe and the inlet and outlet of activated carbon replacement, etc., and the smell on site is heavy." The above facts of

are based on evidence such as the on-site (survey) record, investigation and inquiry record, on-site photos and so on on June 22, 2018

by our bureau.

The above actions of your company violate the provisions of Article 20, paragraph 2, of the the People's Republic of China Air Pollution Prevention and Control Law.

The basis and type of the (II)'s decision to suspend production for rectification

According to Item (III) of Paragraph 1 of Article 99 of the the People's Republic of China Air Pollution Prevention and Control Law, and Item (I) of Article 6 of the Measures for the Implementation of Restrictions on Production and Suspension of Production by Environmental Protection Authorities, our bureau has decided to order your company to implement suspension of production for rectification.

Implementation method and deadline for (III) shutdown rectification

, your company shall immediately stop production from the date of receipt of this decision, and take corrective measures to formulate and implement the rectification plan.

. Your company shall report the rectification plan to our bureau for the record and make it public within 15 working days after receiving this decision. The rectification plan shall determine the corrective measures, the progress of the project, the guarantee of funds and the responsible personnel.

. After your company completes the rectification task, it shall report the completion of the rectification task and the public disclosure of the rectification information to our bureau for the record within 15 working days.

. Your company shall not have any illegal pollutant discharge during the rectification period, and shall not resume production without reporting the completion of the rectification task to our bureau for the record.

The period of suspension of production for rectification is from the date of service of this decision to the date of cancellation of the suspension of production for rectification.

Our bureau will supervise your unit after the implementation of the shutdown rectification, and conduct follow-up inspection after the shutdown rectification is lifted. If your company refuses to carry out rectification as required or commits illegal acts after resuming production, our bureau will impose administrative penalties or administrative treatment in accordance with the law according to your company's illegal circumstances and environmental consequences.

Ways and Time Limit for (IV) to Apply for Administrative Reconsideration or File Administrative Litigation

If your company does not accept this decision, it may apply for administrative reconsideration to Chizhou Municipal Environmental Protection Bureau or Dongzhi County People's Government within 60 days from the date of receipt of this decision in accordance with the provisions of Article 9 of the the People's Republic of China Administrative Reconsideration Law, an administrative lawsuit may also be brought to the people's Court of Dongzhi County within six months from the date of receipt of this decision in accordance with Article 46 of the the People's Republic of China Administrative procedure Law. If an application for administrative reconsideration or an administrative lawsuit is filed, the implementation of this decision shall not be suspended.

If you do not apply for administrative reconsideration, file an administrative lawsuit, or perform this decision within the time limit, our bureau will apply to the people's court for enforcement in accordance with the law.

2. Rectification Measures

Company attached great importance to the above decision and immediately requested Anhui Beika to actively cooperate with the environmental protection department in inspection and stop illegal acts. The specific measures are as follows:

. In response to the incident, the company instructed Jianfeng Pharmaceutical to immediately set up an environmental protection incident emergency working group to investigate the incident and supervise the rectification; at the same time, arrange the company's production enterprises to conduct a comprehensive environmental self-examination to prevent the occurrence of similar incidents.

, prepare a rectification plan and arrange special funds to further upgrade the existing waste gas treatment system in Beika, Anhui Province.

. During the period of shutdown and rectification, Anhui North Carolina will be arranged to carry out annual routine equipment maintenance to ensure the normal operation of production facilities after resumption of production.

Anhui North Carolina will complete the rectification as soon as possible and report the completion of the rectification to the Environmental Protection Bureau, so as to resume normal production as soon as possible.

Impact of 3. on the Company

2018

In January and August, the board of directors of the company approved that the subsidiary Zhejiang Jianfeng Pharmaceutical Co., Ltd. acquired 55% of the equity of Shanghai Beika Pharmaceutical Technology Co., Ltd. by acquiring shares and increasing capital. Anhui Beika is a wholly-owned subsidiary of Shanghai Beika Pharmaceutical Technology Co., Ltd. In May 2018, the industrial and commercial change registration and handover procedures for the investment were completed. In accordance with the "Application Guide to Enterprise Accounting Standards No. 20-Business Combinations", the Company has included Shanghai Beika Pharmaceutical Technology Co., Ltd. and its subsidiaries in the scope of the Company's consolidation since June 2018.

At the end of 2017

, the company's total assets were 41.76 .1 billion yuan, and the net assets attributable to the owners of the parent company were 2.627 billion yuan. In 2017, the company realized operating income of 2.827 billion yuan and realized net profit attributable to the owners of the parent company. 0.348 billion yuan. At the end of 2017, Anhui North Card's total assets were 0.047 billion yuan and net assets were 0.012 billion yuan. Anhui North Card's annual operating income in 2017 was 0.046 billion yuan and net profit was -0.008 billion yuan. Anhui North Card's total assets were about 1.13 of the company's total assets and its operating income was about 1.63 of the company's operating income. Anhui North Card has a small impact on the Company's overall operating income and efficiency.

The company will strictly follow the "Shanghai Stock Exchange Stock Listing Rules" and other relevant requirements to do a good job of information disclosure in a timely manner. Please invest rationally and pay attention to investment risks.

This is to announce

Zhejiang Jianfeng Group Co., Ltd. Board of Directors

July 5, 2018

More information

Peak's "Centennial" Ideal

Editor's note: During the National Day, the "Jinhua New Observation" column of Jinhua TV Station launched a series of reports on "National Day New Observation: New Development of Old Enterprises" to understand the new developments of those old enterprises that have grown up with New China in the new era. October 3 broadcast of the "peak of the 'centennial 'ideal", about the development of the peak group and the future direction of development. The "century" ideal of the peak Jinhua TV reporter Wang Dujuan Jiang Qian host: speaking of Zhejiang Jianfeng Group Co., Ltd., Jinhua people are no stranger. The older generation of Jinhua people are more familiar with, may be the predecessor of Jianfeng Group-Jinhua Cement Factory. Open the first old photo 58 years ago, surrounded by mountains and a rice field in the middle. Old Jinhua can see at a glance that this is the Wise Temple, 8 kilometers north of Jinhua City and east of the former Zhuangtou of Luodian Town. In August 1958, the first group of pioneers came here and built Jinhua's first cement factory on a desolate hillside of 16.94 mu with a pair of hands and warm blood. From the earliest cattle-drawn ball forming machine to the electric ball forming machine, from pure manual labor to machine substitution, it took 26 years of hard work. By 1983, the annual output of peak cement reached 120000 tons, the output value was 6.75 million yuan, and the profit was 2.4 million yuan. In these 26 years, the cement plant has experienced a difficult period of the country, and the ten-year catastrophe of the "Cultural Revolution" has finally ushered in a good time of reform and opening up with tenacious vitality, laying the foundation for steady development in the future. Looking at these old pictures,

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Peak Cement Successfully Enters Lancang Airport Project

News from our newspaper On September 26, the first batch of airport runway cement produced by Yunnan Jianfeng Cement Company was successfully delivered to the Lancang Airport site, which marked another important step in the expansion of Jianfeng Cement in the southwest Yunnan market. Lancang Airport is located in Donghi Town, Lancang Lahu Autonomous County, Pu'er City. It is the center of the "three counties" and "Pu'er Green Triangle" tourist areas of Lancang, Menglian and Ximeng, with a wide range of radiation and obvious location advantages. The project is a national "Twelfth Five-Year Plan" construction project and a key construction project in Yunnan Province. It was approved by the State Council and the Central Military Commission in January 2013. It started construction at the end of November 2014 and is expected to be completed in April 2017. The current project of Lancang Airport is designed to meet the target of 250000 passenger throughput and 750 tons of cargo throughput by 2020, including the construction of a 2600-meter-long and 45-meter-wide runway, the construction of a new 3000-square-meter terminal building and 4 apron parking spaces, including communication, navigation, lighting, meteorology and other supporting projects. The total investment of the project is 1.533 billion yuan. Upon completion, it can be used for Boeing 737 series, Airbus A319 and A320 series, MA-60 and other passenger aircraft take off and land. Since the start of the Lancang Airport project, Yunnan Peak has listed it as an important goal to strive. Compared with ordinary cement, special cement for airport runways has the characteristics of small shrinkage, strong wear resistance, good frost resistance and low alkali content in addition to the requirements of ordinary 42.5 Portland cement. To this end, Yunnan peak in the project to strive for at the same time, the collection of technical forces to tackle the problem, in the clinker composition to determine, cooked.

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Jianfeng won the Zhejiang Industrial Award

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Peak two enterprises were commended

On September 23, the launching ceremony of the 2016 Jinhua Zhejiang Shopping Festival and the 2015 Jinhua Honest Enterprise Commendation Conference were held in the urban people's square. Jianfeng Group's Jinhua Jianfeng Pharmacy Chain Co., Ltd. and Zhejiang Jianfeng International Trade Co., Ltd. were commended.

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