StockCode:000553(200553) StockAbbreviation:SanondaA(B)NO.2019-1 ADAMALtd. PreliminaryAnnouncementontheIntendedAcquisitionof100%oftheEquityInterestsinJiangsuAnponElectrochemicalCo.,Ltd.,ina Related-PartyTransaction TheCompanyandallmembersoftheCompany’sBoardofDirectorsconfirmthatallinformationdisclosedhereinistrue,accurateandcomplete,withnofalseormisleadingstatementormaterialomission. Pleasebeaware: 1.Allrelevantpartieshavereachedinitialunderstandingsregardingthisintendedtransaction.TheseunderstandingshavenotyetbeensubmittedtotheBoardofDirectorsfordeliberation.Thedetails(includingthepurchaseprice)ofthisTransactionarestillsubjecttothedefinitiveequitypurchaseagreementtobesignedbyallparties. 2.ThisTransactionissubjecttorequisitedecision-makingandcustomaryapprovalprocedures.Therefore,thisTransactionremainssubjecttouncertainty. I.OverviewoftheTransaction ADAMALtd.(“Company”)intendstoacquire100%oftheequityinterests(“TargetEquities”)inJiangsuAnponElectrochemicalCo.,Ltd.(“Anpon”)fromCNACInternationalCompanyLimited(“Seller”or“CNACInternational”)(“Transaction”).TheSellerisawhollyownedsubsidiaryofChinaNationalAgrochemicalCorporation(“SellerParent”or“CNAC”)anditisdeemedasarelatedpartyoftheCompany.Therefore,theTransactionwillbearelated-partytransaction. ThisTransactionwillnotconstituteamaterialassetsrestructuringasstipulatedbytheAdministrativeMeasuresonSignificantAssetRestructuringofListedCompanies. II.Basicinformationofthecounterparties (I)CNACInternationalCompanyLimited (1)Companyname:CNACInternationalCompanyLimited (2)Natureofenterprise:Privatelimitedcompany (3)Registeredaddress:17/F,SHINGLEECOMMERCIALBUILDING,6-12WINGKUTSTREET,CENTRAL,HK (4)Director:ChenHongbo (5)Registeredcapital:RMB7,178,289,345.11 (6)BusinessregistrationcertificateNo.:53630355-000-01-18-9 (7)Mainbusiness:holdingandinvestment (8)Controllingshareholder:CNAC (9)Creditstatus:AftersearchingonthewebsiteofdisclosureofenforcementinformationofChina,theSellerisnotadishonestpartysubjecttoenforcement. 2.Related-partyrelationship:TheSellerisawhollyownedsubsidiaryofCNAC,thecontrollingshareholderoftheCompany.TheSellerandtheCompanyareundercommoncontrolofCNAC,inwhichcasetheSellerisarelatedpartyoftheCompany.(II)ChinaNationalAgrochemicalCorporation 1.Basicinformation (1)Companyname:ChinaNationalAgrochemicalCorporation (2)Natureofenterprise:Limitedliabilitycompany(soleproprietorshipbylegalperson) (3)Registeredaddress:No.62,BeisihuanWestRoad,HaidianDistrict,Beijing (4)Legalrepresentative:ChenHongbo (5)Registeredcapital:RMB3,338,219,564.48 (6)Unifiedsocialcreditcode:91110000100011399Y (7)Businessscope:Agrochemicalandchemicalproductsandchemicalraw materials (excluding hazardous chemicals); procurements and sales of electromechanicalequipment,electricalequipment,automaticcontrolsystem,instrument,constructionmaterials,industrialsalt,naturalrubberandproducts, materials;salesoffertilizer;cargowarehousing;importandexportbusiness;technicalconsultant,service,developmentandtesting;productionofgeneticallymodifiedcropseeds(excludingthesixcentralareasofBeijingcity);salesofcropseeds,grassseedsandediblefungusstrains.(Thecompanyshalllawfullyandindependentlyselectitsbusinessprojectsandconductbusinessactivities;thebusinessactivitieswhichrequireapprovalsshallbeconductedafterobtainingsuchapprovalsfromrelevantauthoritiesinaccordancewiththeapprovedscopes;andthecompanyisprohibitedtoinvolveinthebusinessactivitieswhichisprohibitedorrestrictedbythecity’sindustrypolicies.)(8)Controllingshareholder:ChinaNationalChemicalCorporation(“ChemChina”)(9)Creditstatus:AftersearchingonthewebsiteofdisclosureofenforcementinformationofChina,CNACisnotadishonestpartysubjecttoenforcement. 2.Related-partyrelationship:CNACisthecontrollingshareholderoftheCompany,whichisdeemedasarelatedpartyoftheCompany. III.Basicinformationofthetargetassets 1.Companyname:JiangsuAnponElectrochemicalCo.,Ltd. 2.Shareholdingstructure:TheSellerholdsandowns100%oftheequityinterestsinAnpon. 3.Businessscope:Producingchemicalmaterialsandchemicalproducts(ifbusinessactivitiesinvolvehazardouschemicals,precursorchemicalsorcontrolledchemicalswhichrequirelicenses,suchactivitiesarelimitedtothepermittedscopeasindicatedinrelevantlicensessuchasSafetyProductionLicense);producingchemicalproducts(preparation);wholesalinghazardouschemicals(limitedtothescopeasindicatedinBusinessLicenseofHazardousChemicals);exploitingundergroundrocksalt;exportingself-producedpesticidesandchemicalproducts;inspectingweldedgascylinder;producingsteamandgeneratingelectricitywithwasteheat;producingandsellingpackagedgoods;printinglabelsofcarton;exportbusinessofself-producedproductsandtechnology;importbusinessofrawmaterials,machineryequipment,componentsandtechnologywhichareneededforproducingandresearch;supplyingself-producedhotwater(excludingdrinkingwater);pesticidebusiness(excluding requireregulatoryapprovalsshallbeoperatedafterobtainingsuchapprovalsfromrelevantauthorities). 4.Registeredcapital:RMB251,380,000 5.Dateofestablishment:November25,1998 6.Registeredaddress:No.30,HuagongRoad,Huai’an 7.Unifiedsocialcreditcode:91320800139433337K 8.Legalrepresentative:AnLiru 9.Natureofenterprise:Limitedliabilitycompany(soleproprietorshipbylegalpersonlocatedinTaiwanregion,HKorMacao) 10.Creditstatus:AftersearchingonthewebsiteofdisclosureofenforcementinformationofChina,Anponisnotadishonestpartysubjecttoenforcement. IV.MaincontentandpricingbasisofthisTransaction Asofthedateofthisannouncement,whilethepartieshavereachedinitialunderstandingsregardingthisintendedTransaction,thisTransactionisstillundernegotiation.Thepartieshavenotyetsignedadefinitiveequityintereststransferagreementinthisregard.Inthemeanwhile,relevantagenciesareconductingauditandappraisalprocessesonAnpon.TheCompanywillconveneaboardmeetingtodeliberateonthisTransactionandshallsignadefinitiveequityintereststransferagreementwiththeSellerandtheSellerParentafterrelevantconditionshavebeenmet.ThepurchasepriceofthisTransactionwillbedeterminedbyallpartiesonthebasisofanappraisalreportwhichshallbefiledwithChemChina.TheCompanywillperformitsinformationdisclosureobligationstimelyinaccordancewiththeprogressofthisTransaction. V.PurposeofthisTransactionandtheeffectsontheCompany 1.Anpon’smainbusinessishighlysynergisticwiththatoftheCompany. ishighlysynergisticwiththatoftheCompany.Therefore,thisTransactionisfullyalignedwiththeCompany’sstrategiesofbusinessoperationanddevelopmentandcanhelptheCompanygrowitsexportstoglobalmarketsthroughtheCompany’sworldwidedistributionnetworkandfurtherimprovetheCompany’scorecompetitiveness,whichareintheinterestsoftheCompanyanditsshareholders. 2.ThisTransactionwillhelpthecontrollingshareholderperformitscommitmentswithrespecttoeliminatinghorizontalcompetition,andreducingtherelated-partytransactions. TheCompany’sacquisitionofAnponwillhelptheCompanyanditsindirectcontrollingshareholderChemChinaperformthepubliccommitmentswithrespecttoavoidinghorizontalcompetitionsandreducingrelated-partytransactionswhichwereannouncedintheannouncement(No.2017-45)oftheCompanydatedAugust1,2017onthewebsite(www.cninfo.com.cn). Itisherebyannounced. BoardofDirectorsoftheCompany January2,2019