Zhe Jiang Dong Ri Limited Company(600113) ( Zhe Jiang Dong Ri Limited Company(600113) ) supplementary announcement of 2021 profit distribution plan

Stock Code: Zhe Jiang Dong Ri Limited Company(600113) stock abbreviation: Zhe Jiang Dong Ri Limited Company(600113) Announcement No.: 2022014

Zhe Jiang Dong Ri Limited Company(600113)

Supplementary announcement of 2021 profit distribution plan

The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete, and are jointly and severally liable for false records, misleading statements or major omissions in the announcement. Important content tips: ● distribution proportion per share: cash dividend of RMB 0.24 per share (including tax). ● the profit distribution is based on the total share capital registered on the equity distribution registration date, and the specific date will be specified in the equity distribution implementation announcement. ● if the total share capital of the company changes before the equity registration date of equity distribution, it is proposed to keep the total distribution unchanged, adjust the distribution proportion per share accordingly, and announce the specific adjustment separately. ● the reason why the proportion of cash dividend is lower than 30% in this year: according to the current actual situation and development stage of the company, a large amount of funds need to be reserved for the promotion of the company’s projects and the expansion of its main business. The undistributed profits retained by the company will continue to be used for the development of the company’s main business, mainly invested in the transformation and upgrading of the existing market, the construction of existing projects and the expansion of new projects, so as to help the company expand its market share, improve its market competitiveness, further improve its business performance and ensure the healthy and stable development of the company, Lay a solid foundation for better return to investors, especially small and medium-sized investors.

1、 Contents of profit distribution plan

Audited by Tianjian Certified Public Accountants (special general partnership), as of December 31, 2021, the company’s profit available for distribution at the end of the period was 87122857471 yuan (based on the statement caliber of the parent company). According to the resolution of the board of directors, the company plans to distribute profits based on the total share capital registered on the date of equity distribution in 2021. The profit distribution plan is as follows:

The company plans to distribute a cash dividend of RMB 2.40 (including tax) to all shareholders for every 10 shares. As of December 31, 2021, the total share capital of the company is 411431160 shares. Based on this calculation, the total cash dividend to be distributed is 9874347840 yuan (including tax). The cash dividend amount of the company in this year accounted for 15.14% of the net profit attributable to the shareholders of the listed company in the consolidated statements.

If the total share capital of the company changes from the date of disclosure of this announcement to the date of equity distribution and equity registration, the company plans to maintain the total distribution unchanged and adjust the distribution proportion per share accordingly. In case of subsequent changes in the total share capital, the specific adjustment will be announced separately.

This profit distribution plan needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation.

2、 Description of cash dividend ratio less than 30% in this year

In 2021, the net profit attributable to the shareholders of the listed company was 65235585969 yuan, the accumulated undistributed profit of the parent company was 87122857471 yuan, and the total cash dividend to be distributed by the company was 9874347840 yuan (tax included), accounting for less than 30% of the net profit attributable to the shareholders of the listed company this year. The specific reasons are as follows:

(I) industry situation and characteristics of the company

The company’s main business is Shenzhen Agricultural Products Group Co.Ltd(000061) wholesale market operation, covering market construction and development, market management, logistics distribution, food production, financial services and other related industries.

Shenzhen Agricultural Products Group Co.Ltd(000061) wholesale market plays an important core role in the field of Shenzhen Agricultural Products Group Co.Ltd(000061) circulation in China. In recent years, the government has attached great importance to the construction of Shenzhen Agricultural Products Group Co.Ltd(000061) market system and has promoted the development of Shenzhen Agricultural Products Group Co.Ltd(000061) wholesale market as an important task. No. 1 central document has been included in the central task force.

Shenzhen Agricultural Products Group Co.Ltd(000061) wholesale market needs sufficient sites and facilities for its operation, which is characterized by large investment volume in the early stage and stable cash flow after business maturity. (II) development stage of the company and its own business model

In recent years, the company has actively expanded with many years of operation experience of agricultural approval platform. As of the date of disclosure of the annual report in 2021, the company has built projects such as “Jinnan international Shenzhen Agricultural Products Group Co.Ltd(000061) Logistics Park” in Linfen, Shanxi Province, “Fujian Zhejiang modern agricultural trade city” in Fuding, Fujian Province, and “central market of agricultural and sideline products in Western Zhejiang Province” in Longyou, Zhejiang Province, and actively sought more opportunities for expansion, striving to build a trading system of “buying and selling the whole country”. (III) profitability and capital demand of the company

During the reporting period, the company’s profit increased significantly, which was mainly due to the collection of compensation receivable from Wenzhou Oriental lamps market, which the company belongs to, and included in the current profit and loss in 2021. The net profit attributable to the shareholders of the listed company in 2021 was 65235585969 yuan; The net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses is 11558606297 yuan, and the total cash dividend to be distributed by the company is 9874347840 yuan (including tax), accounting for less than 30% of the net profit attributable to the shareholders of the listed company this year. However, according to the net profit after deducting non recurring profits and losses, it has reached 85.43% The proportion is much higher than that in the same period of previous years.

In 2022, the company continued to adhere to the three strategies of “external expansion, M & A and talents”, and did a good job in the transformation and upgrading of the existing market, the construction of existing projects and the expansion of new projects around the work goal of building a leading agricultural batch operator and service provider in the new era. Therefore, the company still has a large capital demand in subsequent years.

(IV) reasons for the low level of cash dividends of the company

In order to ensure the company’s long-term development and the realization of strategic objectives, and comprehensively consider the company’s actual situation and current capital pressure, the company formulates the above profit distribution plan. The plan complies with the provisions of the articles of association to maintain a sustained and stable profit distribution policy, and helps to realize the sustainable development of the company and bring long-term and sustainable returns to investors.

(V) the exact purpose of retained undistributed profits and the estimated income of the company

The undistributed profits retained by the company will continue to be used for the development of the company’s main business, mainly invested in the transformation and upgrading of the existing market, the construction of existing projects and the expansion of new projects, so as to help the company expand its market share, improve its market competitiveness, further improve its business performance and ensure the healthy and stable development of the company, Lay a solid foundation for better return to investors, especially small and medium-sized investors.

3、 Decision making procedures performed by the company

(I) convening, deliberation and voting of the board meeting

On March 11, 2022, the 26th meeting of the 8th board of directors of the company deliberated and adopted the Zhe Jiang Dong Ri Limited Company(600113) 2021 annual profit distribution plan with 9 affirmative votes, 0 abstention votes and 0 negative votes, and agreed to submit the proposal to the 2021 annual general meeting of shareholders of the company for deliberation.

(II) opinions of independent directors

The independent directors believe that the profit distribution plan of the company complies with the relevant provisions of China Securities Regulatory Commission and Shanghai Stock Exchange on strengthening the protection of investors’ interests and dividends of listed companies, as well as the rules and regulations such as the articles of association and Zhe Jiang Dong Ri Limited Company(600113) shareholders’ dividend return plan (20212023), which is based on the development stage, profitability and capital status of the company, The plan made to take into account the interests of shareholders and the development needs of the company, agreed to the proposal and submitted to the 2021 annual general meeting of shareholders for deliberation.

(III) opinions of the board of supervisors

The board of supervisors believes that the company’s profit distribution plan for 2021 proposed by the board of directors complies with the provisions of relevant laws, regulations and the articles of association, and does not harm the interests of the company’s shareholders, especially the minority shareholders, and agrees to the profit distribution plan. It is agreed to submit the plan to the 2021 annual general meeting of shareholders of the company for deliberation.

3、 Relevant risk tips

This profit distribution plan combines the company’s development stage, future capital demand and other factors, and will not have a significant impact on the company’s earnings per share and operating cash flow, and will not affect the company’s normal operation and long-term development.

This profit distribution plan needs to be submitted to the company’s 2021 annual general meeting for deliberation and approval. Please pay attention to the investment risks.

It is hereby announced

Zhe Jiang Dong Ri Limited Company(600113) board of directors March 13, 2002

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