Shandong Rikexin Chemical Co., Ltd. Board of Directors
Statement of Shandong Rikexin Chemical Co., Ltd. Regarding Compliance of the Current Transaction with Articles 11, 43, and 44 of the Measures for the Administration of Major Asset Reorganizations of Listed Companies
Shandong Rikexin Chemical Co., Ltd. (hereinafter referred to as the "Company") proposes to acquire 70.75% of the shares of Shandong Yuanxin New Material Co., Ltd. by issuing shares and paying cash, and to raise supporting funds (hereinafter referred to as the "Transaction"). The Transaction is expected to constitute a major asset reorganization as defined by the Measures for the Administration of Major Asset Reorganizations of Listed Companies (hereinafter referred to as the "Reorganization Measures"), and is expected to constitute a related-party transaction. It is not expected to constitute a backdoor listing, nor is it expected to result in a change of the Company's actual controller.
The Company's Board of Directors has prudently reviewed and deliberated on whether the Transaction complies with the provisions of Articles 11, 43, and 44 of the Reorganization Measures. The Board of Directors is of the opinion that:
I. The Transaction Complies with the Provisions of Article 11 of the Reorganization Measures