Nanjing Red Sun Co.Ltd(000525) : progress announcement on the implementation of other risk warnings on the company’s shares

Securities code: 000525 securities abbreviation: St red sun Announcement No.: 2022-015

Nanjing Red Sun Co.Ltd(000525)

Progress announcement on the implementation of other risk warnings on the company’s shares

The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions. Special tips:

Nanjing Red Sun Co.Ltd(000525) (hereinafter referred to as “the company”) has the situation that the controlling shareholder Nanjing First Pesticide Group Co., Ltd. (hereinafter referred to as “Nanyi agricultural group”) and its related parties occupy the company’s funds for non-profit purposes. The company’s internal control audit report with negative opinions was issued by Lixin Zhonglian Certified Public Accountants (special general partnership) in 2020. As of April 28, 2021, the fund balance of the company occupied by Nanyi agricultural group and its related parties was 2963.9845 million yuan. See the company’s 2020 annual report and other relevant announcements disclosed by the company on April 30, 2021 for details. As the non operational occupation of the company’s funds by the controlling shareholders and their related parties has not been resolved, the matters involved in the relevant negative opinions have not been eliminated so far.

1、 Progress of other risk warning related matters implemented by the company

During the period from April 29, 2021 to January 5, 2022, Nanyi agricultural group and its affiliates repaid the occupied funds to the company by RMB 11.6836 million. As of January 5, 2022, the fund balance of the company occupied by Nanyi agricultural group and its related parties was 2952.3099 million yuan. For details, see the company’s statements on June 8, 2021, July 8, 2021, August 7, 2021, September 7, 2021, October 9, 2021, November 9, 2021, December 7, 2021 Announcement on the progress of other risk warning related matters of the company’s shares disclosed on January 7, 2022 (Announcement No.: 2021-054, 2021-063, 2021-069, 2021-079, 2021-084, 2021-089, 2021-096 and 2022-002). According to statistics from January 6, 2022 to February 6, 2022, Nanyi agricultural group and its related parties did not repay the occupied funds to the company. As of February 6, 2022, the balance of funds occupied by Nanyi agricultural group and its related parties was 2952.3099 million yuan.

2、 Measures taken by the company during the implementation of risk warning

Based on the attitude of being responsible to all shareholders, the company and the board of directors continue to urge Nanyi agricultural group and its related parties to return the occupied funds as soon as possible, so as to eliminate the impact on the company and effectively safeguard the interests of the company and the majority of investors. Therefore, the company actively pays attention to the reorganization and progress of Nanyi agricultural group, understands and follows up the assets, liabilities and operation of Nanyi agricultural group and its related parties, continuously sends letters or inquires about the progress of implementing the plan of returning the occupied funds to Nanyi agricultural group and its related parties on site, and urges them to pay off the occupied funds as soon as possible. At present, relevant parties are actively rectifying. At the same time, the company actively focuses on its main business, gives full play to its industrial advantages, reduces costs and increases efficiency, strengthens the quality of the company’s operation and management, further strengthens the awareness of compliance, standardizes the company’s operation, improves the internal control system and prevents the recurrence of such events.

3、 Other instructions

The company solemnly reminds investors that the information disclosure media designated by the company are China Securities News, securities times and cninfo( http://www.cn.info.com.cn. )。 All information of the company shall be subject to the official announcement published by the company in the above designated media. Please make investment decisions carefully and pay attention to investment risks.

It is hereby announced.

Nanjing Red Sun Co.Ltd(000525) board of directors

February 7, 2022

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