Weifang Yaxing Chemical Co.Ltd(600319) : Weifang Yaxing Chemical Co.Ltd(600319) announcement on application for cancellation of delisting risk warning of the company’s shares

Stock abbreviation: ST Yaxing Stock Code: Weifang Yaxing Chemical Co.Ltd(600319) No.: pro 2022017 Weifang Yaxing Chemical Co.Ltd(600319)

Announcement on applying for cancellation of the company’s stock delisting risk warning

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.

Important content tips:

● Shanghai Stock Exchange will decide whether to cancel the delisting risk warning and other risk warnings for the company’s shares according to the actual situation within 10 trading days after receiving the application of Weifang Yaxing Chemical Co.Ltd(600319) (hereinafter referred to as “the company”). According to article 9.1.11 of the Listing Rules of Shanghai Stock Exchange (revised in January 2022): “before the bourse makes a decision on whether to revoke the risk warning and terminate the listing of shares, it may require the listed company to provide supplementary materials, and the period during which the company provides supplementary materials shall not be included in the period during which the bourse makes relevant decisions.”

● whether the delisting risk warning and other risk warnings of the company’s stock trading can be revoked still needs the examination and confirmation of Shanghai Stock Exchange. Please pay attention to the investment risks.

1、 Implementation of risk warning on the company’s shares

1. Other risk warnings

Weifang Yaxing Chemical Co.Ltd(600319) (hereinafter referred to as “the company”) received the notice on relocation and shutdown of Weifang Yaxing Chemical Co.Ltd(600319) Hanting production plant (hereinafter referred to as “the notice”) issued by the office of Weifang Municipal People’s Government on September 2, 2019. According to the requirements of the notice, the company has shut down and relocated the production plant located in the east of Beihai Road and the north of Minzhu street in Hanting district before October 31, 2019. Since the production plant of the company has been completely shut down, and it is expected that production will not be fully resumed in the next three months. This situation touches the provisions of article 13.4.1 (II) of the Listing Rules of Shanghai Stock Exchange (revised in 2019), “production and operation activities have been seriously affected and it is expected that they will not return to normal within three months”, and the company applies to Shanghai stock exchange for other risk warnings on the company’s shares.

2. Delisting risk warning

The audited net profit attributable to the shareholders of the listed company in 2020 is negative and the operating income is less than 100 million yuan, which touches the situation stipulated in article 13.3.2 “(I) the audited net profit in the latest fiscal year is negative and the operating income is less than 100 million yuan” of the listing rules of Shanghai Stock Exchange (revised in December 2020), The company’s shares will be subject to delisting risk warning. The company’s shares will be subject to special treatment of delisting risk warning from April 30, 2021.

2、 Operation of the company and audited financial report of the company in 2021

The company’s 2021 financial report was audited by Shanghai accounting firm (special general partnership) and issued a standard unqualified audit report. According to the audit, as of December 31, 2021, the operating income in 2021 was 192717 million yuan, the net profit attributable to the shareholders of the listed company was 1930259 million yuan, and the net profit after deducting non recurring profits and losses was -723423 million yuan. The full text and abstract of the company’s 2021 annual report have been deliberated and adopted at the 10th meeting of the 8th board of directors held on March 3, 2022. The full text has been published in China Securities Journal, Shanghai Securities News, securities times and the website of Shanghai Stock Exchange (www.sse. Com. Cn) on March 5, 2022 disclosure.

In 2021, all relocation projects were carried out in an orderly manner as planned, the completed units operated well, and the production and operation order of the company has been restored. Shanghui Certified Public Accountants (special general partnership) issued the special verification report on the deduction of operating income in Weifang Yaxing Chemical Co.Ltd(600319) 2021 (shsbz (2022) No. 1237), which confirmed that after deducting the business income irrelevant to the main business and the income without commercial substance, the company’s operating income in 2021 was 191548400 yuan. On the same day, Shanghui Certified Public Accountants (special general partnership) also issued the audit report on the elimination of the impact of matters involved in the unqualified opinion on the significant uncertainty paragraphs related to sustainable operation in the audit report of Yaxing chemical in 2020 (shsbz (2022) No. 1238).

3、 The company’s application for cancellation of other risk warnings and delisting risk warnings

The company checked item by item according to article 9.3.2 and 9.8.1 of the Listing Rules of Shanghai Stock Exchange (revised in January 2022), and the situations involving delisting risk warning and other risk warnings in the audited financial indicators of the company’s 2021 annual report have been eliminated, And do not touch other delisting risk warnings and other risk warnings. At present, we have received the inquiry letter on the supervision of information disclosure of Weifang Yaxing Chemical Co.Ltd(600319) 2021 annual report from Shanghai Stock Exchange, which requires the company and accountants to demonstrate the sustainable operation ability. If the audit report of the financial accounting report of the latest fiscal year shows that the company’s sustainable operation ability is uncertain, the company’s shares will continue to be subject to other risk warnings, Investors are invited to pay attention to relevant risks.

In view of the above reasons, the proposal on applying for cancellation of delisting risk warning of the company’s shares was considered and adopted at the 11th meeting of the 8th board of directors of the company by 9 votes in favor, 0 votes against and 0 abstentions. The company plans to apply to Shanghai stock exchange for cancellation of delisting risk warning and other risk warnings of the company’s shares. Within 10 trading days after receiving the company’s application, Shanghai Stock Exchange shall decide whether to revoke the delisting risk warning and other risk warnings for the company’s shares according to the actual situation. According to article 9.1.11 of the Listing Rules of Shanghai Stock Exchange (revised in January 2022): “before the bourse makes a decision on whether to revoke the risk warning and terminate the listing of shares, it may require the listed company to provide supplementary materials, and the period during which the company provides supplementary materials shall not be included in the period during which the bourse makes relevant decisions.”

During the review period of Shanghai Stock Exchange, the company does not apply for stock suspension, and the company’s shares are traded normally. Whether the delisting risk warning and other risk warnings of the company’s shares can be revoked still needs the examination and confirmation of Shanghai Stock Exchange. The company will timely perform the obligation of information disclosure according to the progress of the above application matters. Please pay attention to investment risks.

It is hereby announced.

Weifang Yaxing Chemical Co.Ltd(600319) board of directors March 6, 2002

- Advertisment -