Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) : draft settlement agreement

Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) : draft of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) settlement agreement Chengxing Co., Ltd. is a listed company on Shanghai Stock Exchange, which is mainly engaged in the production and sales of fine phosphorus chemical products such as yellow phosphorus, phosphoric acid and phosphate. Since 2019, covid-19 epidemic has led to the slowdown of global economic growth, continuous global trade frictions, high maritime logistics prices, continuous appreciation of RMB and weak market demand, and the profitability of Chengxing’s terminal products has been greatly affected. When the company, the controlling shareholder Chengxing group, fell into a debt crisis due to covid-19 epidemic and the sharp decline of crude oil, affected by various lawsuits Under the influence of multiple factors such as the reorganization of affiliated enterprises, the bank continued to reduce the loan limit, the loss of some customers and the increase of litigation, resulting in the operating difficulties of Chengxing shares. Since the audited net assets at the end of the period in 2020 are negative, and the financial and accounting report in 2020 is issued without opinions, the delisting risk warning of Chengxing shares has been implemented since May 6, 2021