Kelin Environmental Protection Equipment Inc(002499) : suggestive announcement on the court’s acceptance of the application for bankruptcy reorganization by the largest shareholder and the judicial re freezing of some shares

Securities code: 002499 securities abbreviation: * ST Colin Announcement No.: 2022-002 Kelin Environmental Protection Equipment Inc(002499)

About the first largest shareholder’s application for bankruptcy reorganization accepted by the court

And the prompt announcement that some shares have been re frozen by the judiciary

The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete without false records, misleading statements or major omissions.

Special tips:

1. Chongqing dongchengruiye Investment Co., Ltd. is only the largest shareholder of the company, not the controlling shareholder and actual controller of the company.

2. The cumulative number of frozen shares (including this time) of Chongqing dongchengruiye Investment Co., Ltd. accounts for more than 80% of the company’s shares. Please pay attention to relevant risks.

Kelin Environmental Protection Equipment Inc(002499) (hereinafter referred to as “the company”) paid attention to the national enterprise bankruptcy and reorganization case information network on January 19, 2022. On December 17, 2021, it was disclosed that Industrial Bank Co.Ltd(601166) Shenzhen Heping sub branch applied to Chongqing No. 5 intermediate people’s court for bankruptcy and reorganization of Chongqing dongchengruiye Investment Co., Ltd. (hereinafter referred to as “dongchengruiye”), the largest shareholder of the respondent company ([2021] Yu 05 Po Shen No. 895). On January 19, 2022, the company inquired about the stock freeze of the company through China Securities Depository and Clearing Co., Ltd. and learned that the shares of the company held by dongchengruiye, the largest shareholder of the company, were newly frozen. As of the date when the company learned the above information, dongchengruiye has not received the relevant court documents on the above matters, nor has it notified the listed company of the relevant information. The company has inquired about dongchengruiye, and now the relevant information is announced as follows:

1、 Basic information

(I) basic information of the bankruptcy reorganization applied for

As of the disclosure date of this announcement, Industrial Bank Co.Ltd(601166) Shenzhen Heping sub branch has applied to Chongqing fifth intermediate people’s court for bankruptcy reorganization of dongchengrui industry, which has been accepted and filed by Chongqing fifth intermediate people’s court. Dongchengruiye has not received relevant legal documents.

(II) basic information of some shares being re frozen by the judiciary

It is understood that the main reason for the judicial re freezing of the above-mentioned new shares is that Industrial Bank Co.Ltd(601166) Shenzhen Heping sub branch applied for property preservation to Shenzhen intermediate people’s Court on January 11, 2022 (case No.: 2022 Yue 03 Cai Bao No. 4 BIS). The court has frozen the Pledged Shares of dongchengrui industry, and has not received relevant legal documents yet.

1. Basic information of this freeze

Whether the shares are judicial frozen

East shareholders and the number of frozen shares in the proportion of shares held by them in the date of unfreezing the company’s total freezing settlement, the date of unfreezing, the date of concerted action (shares), the proportion of share capital, the type of person’s name and period

Weigh people

Eastern justice Guangdong Province

Cheng no 29818628 83.04% refreeze Shenzhen 2022-01-18 2025-01-17 Rui 15.78% intermediate people

Yejiemin court

2. Basic information of accumulated freezing

Share of the company

Number of shares held by shareholders (shares) shareholding ratio cumulative pledge amount accounting for the cumulative frozen amount of total share capital held by shareholders

Name example amount share proportion (share) proportion share capital

proportion

Dongcheng 35910000 19.00% 35910000 100.00% 19.00% 29818628 83.04% 15.78% Ruiye

2、 Impact of this event on the company

As of the disclosure date of this announcement, Dongcheng Ruiye holds 35910000 shares of the company, accounting for 19% of the total share capital of the company, all of which are in the state of pledge; Among them, 29818628 shares were frozen, accounting for 83.04% of the shares held by them and 15.78% of the total share capital of the company.

Dongcheng Ruiye signed the commitment letter on waiver of voting rights in January 2021. Dongcheng Ruiye voluntarily and irrevocably waived its 35910000 shares of the listed company (accounting for 19% of the total share capital of the listed company) and the voting rights of the increased shares during the waiver period promised in the commitment letter. Therefore, dongchengrui industry is only the largest shareholder of the company, not the controlling shareholder and actual controller of the company. After Dongcheng Ruiye enters the bankruptcy liquidation procedure, it may have an impact on the equity structure of the company, and there is the possibility of changing the largest shareholder of the company.

At the same time, the company and dongchengrui industry are different subjects and remain independent from each other in terms of assets, business and finance. As of the disclosure date of this announcement, Dongcheng Ruiye has not occupied the company’s non operating funds or illegally guaranteed the company. Therefore, the bankruptcy reorganization of dongchengruiye and the judicial freezing of its shares will not have a significant impact on the daily operation of the company. At present, the operation and management of the company is normal.

The company will urge dongchengruiye to properly handle the above problems, pay continuous attention to and timely supplement and disclose the progress of the above matters. The information disclosure media designated by the company are securities times and http://www.cn.info.com.cn, All information publicly disclosed by the company shall be subject to the announcement published in the above designated media. Please pay attention to the investment risks.

3、 Documents for future reference

1. Detailed statement of securities pledge and judicial freezing of China Securities Depository and Clearing Co., Ltd.

It is hereby announced.

Kelin Environmental Protection Equipment Inc(002499) board of directors January 20, 2002

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