Securities Abbreviations: Jianfeng Group Securities Code: 600668 No.: Pro 2017-025

Bond Abbreviations: 13 Peak 01 Bond Code: 122227

Bond Abbreviations: 13 Peak 02 Bond Code: 122344

Zhejiang Jianfeng Group Co., Ltd.

Announcement on Changes in the Company's Accounting Policy

Important Note:

● This change in the Company's accounting policy will only have an impact on the presentation of items in the financial statements, and will not have an impact on the Company's net assets and net profit, and will not involve retrospective adjustments from previous years.

1. Overview of this Accounting Policy Change

On April 28, 2017 , the Ministry of Finance formulated and issued Accounting Standards for Business Enterprises No. 42-Non-current Assets Held for Sale, Disposal Group and Discontinued Operations (Accounting [2017 ] No. 13 ) , on May 10, 2017 , the "Accounting Standards for Enterprises No. 16-Government Subsidies" (Accounting [2017 ] No. 15 ) was revised and issued, requiring all enterprises implementing the Accounting Standards for Enterprises to be implemented from May 28, 2017 and June 12, 2017 respectively.

Before this change, the company implemented the "Accounting Standards for Business Enterprises-Basic Standards" issued by the Ministry of Finance on February 15, 2006 and 38 specific accounting standards, application guidelines for accounting standards for business enterprises, interpretation announcements for accounting standards for business enterprises and subsequent revisions. Specific standards and other relevant regulations.

to implement the above revised accounting standards, the company intends to make corresponding changes to the accounting policy, the remaining unchanged part of the Ministry of Finance on February 15, 2006 and subsequent amendments to the relevant specific standards and other relevant provisions.

2. The specific situation of this accounting policy change and its impact on the company

(I) According to the regulations and requirements of the Ministry of Finance on the issuance of <Accounting Standard No. 42-Non-current Assets Held for Sale, Disposal Group and Termination of Operations> (Caikuai [2017] No. 13), implement ASU 42-Non-current Assets Held for Sale, Disposal Groups and Discontinued Operations, and make corresponding disclosures in the financial statements as required. The Company's implementation of the above new standards will not have an impact on the Company's total assets, total liabilities, net assets and net income for the current period and prior to the change in accounting policy.

(II) According to the notice issued by the Ministry of Finance on the revision of the "Accounting Standards for Business Enterprises No. 16 -Government Subsidies" (Caihui [2017] No. 15), the company will modify the presentation of the financial statements and report the "other income" account separately above the "operating profit" item in the income statement, reclassify government grants related to the Company's daily activities from January 1, 2017 from "non-operating income" to "other income. The Company applies the prospective application method to government grants that existed on January 1, 2017, and adjusts new government grants between January 1, 2017 and the effective date of the new standard in accordance with the new government grant standard, with no retrospective adjustment to the financial statements for comparable accounting periods. With this adjustment, the amount of "other income" will increase by 5,829,838.47 yuan and the amount of "non-operating income" will decrease by 5,829,838.47 yuan during the reporting period.

3. Board of Directors Review

The company held the 15th meeting of the 9th Board of Directors on August 25, 2017 to review and pass the "Proposal on Changes in the Company's Accounting Policy". The voting result: 9 votes in favor, 0 votes against, and 0 abstentions.

The Board of Directors of the Company believes that this change in accounting policy is a reasonable adjustment in accordance with the relevant regulations of the Ministry of Finance, and that the implementation of the changed accounting policy can objectively and fairly reflect the Company's financial position and operating results, providing investors with more reliable and accurate accounting information. This change in accounting policy is in line with the actual situation of the company, in line with the "Enterprise Accounting Standards" and other relevant provisions, agreed to this change in accounting policy.

4. independent directors issued independent opinions

The independent directors of the company believe that the company's accounting policy change is a reasonable change made by the company in accordance with the requirements of relevant documents of the Ministry of Finance, and conforms to the Accounting Standards for Business Enterprises and related regulations, Its decision-making procedures comply with relevant laws, regulations and the company's "Articles of Association" and other provisions, and do not harm the interests of the company and small and minority shareholders.

5. Board of Supervisors Review Opinions

The Board of Supervisors believes that the company's accounting policy change is adjusted in accordance with changes in national policies and complies with the revised "Accounting Standards for Business Enterprises No. 16 -Government Subsidy" (Accounting [2017] No. 15) and other relevant regulations, the change decision-making procedures also comply with relevant laws, administrative regulations and the "Articles of Association, there is no harm to the interests of shareholders, especially small and medium-sized shareholders. Agree to the company's accounting policy changes.

6. Reference Document

(I) Opinions of Independent Directors of Jianfeng Group;

Resolutions of the 12th Board of Supervisors of the 8th 94th Session of (II) Jianfeng Group;

Resolutions of the 15th Session of the 9th 97th Session of (III) Jianfeng Group;

hereby announce

Zhejiang Jianfeng Group Co., Ltd.

Board of Directors

August 29, 2017