StockCode:000553(200553) StockAbbreviation:ADAMAA(B)NO.2019-31 ADAMALtd. AnnouncementonNewExpectedRelated-PartyTransactionsinthe OrdinaryCourseofBusinessin2019 TheCompanyandallmembersoftheCompany’sBoardofDirectorsconfirmthatallinformationdisclosedhereinistrue,accurateandcomplete,withnofalseormisleadingstatementormaterialomission. I. BasicInformationontheNewRelatedPartyTransactionsintheordinarycourseof business (I) Overviewofthenewrelated-partytransactionsintheordinarycourseofbusiness OnFebruary22,2019theCompanydisclosedtheExpectedRelated-PartyTransactionsin theOrdinaryCourseofBusinessin2019(announcementnumber2019-11). FollowingtheclosingoftheacquisitionofJiangsuAnponElectrochemicalCo.,Ltd. (hereinafterreferredtoas“Anpon”)bytheCompanyonMarch29,2019(see announcementnumber2019-24),Anponisnowbeingconsolidatedintothefinancial statementsoftheCompanyasoftheQ12019financialstatements. TheCompanyexpectsthatin2019Anponwillsellrawmaterialsand/orproducts,inatotal amountthatwillnotexceedRMB231.38million,tosubsidiariescontrolledbyChina NationalChemicalCo.,Ltd(“ChemChina”);andthatAnponwillpurchaseproductsand commodities,services,inatotalamountthatwillnotexceedRMB342.23million,from subsidiariescontrolledbyChemChina.Suchtransactionshereinafterreferredasthe "Related-partyTransactions". Theseestimationswereperformedbasedonthecurrentavailabledataandmaychange, interalia,asaresultofchangestotheCompany'sbusiness,andAnponinparticular,and/or duetomarketconditionsaswellasduetofurthercooperationtobenegotiatedbetweenthe CompanyandSyngenta. TheRelated-partyTransactionsmatterhasbeenreviewedandapprovedatthe14thMeeting theCompany,therewerefouraffirmativevotes,zeronegativevotesandzeroabstentions, whiletheonerelated-partydirector(Mr.YangXingqiang)refrainedfromvoting. TheRelated-partyTransactionsmattershallbefurtherapprovedbytheShareholders Meeting.ChinaNationalAgrochemicalCo.,Ltd.,andJingzhouSanondaHoldingsCo.,Ltd. willrefrainfromvoting. (II) Thetypesandamountsofthenewexpectedrelated-partytransactionsintheordinary courseofbusiness RMB10,000 Thepricing Contractamount Typeof Contentof Amount principleof orestimated related-party Relatedparty related-party incurredinthe related-party amountnotto transaction transaction previousyear transaction exceed Sellingraw JiangsuHuaihe materials ChemicalsCo., Sellingproducts Marketprice 23,138 0 and/or Ltd. productsto relatedparties Sub-total - - 23,138 0 JiangsuHuaihe ChemicalsCo., Purchaseofproducts Marketprice 20,099 0 Ltd. Zhonglan Purchasing International Purchaseof Marketprice 11,983 0 rawmaterials ChemicalCo., commodities and/or Ltd. productsfrom Bluestar relatedparties (Beijing) Purchaseof Chemical Marketprice 1,428 0 commodities MachineryCo., Ltd. Sub-total - - 33,510 0 Shanghai Receiving Branchof servicesfrom Zhonglan Designservices Marketprice 712 0 relatedparties LianhaiDesign InstituteCo., Sub-total - - 712 0 (III) Actualrelated-partytransactionsintheordinarycourseofbusinessperformedinthe previousyear FromtheCompanyperspective,asAnponwasawhollyownedsubsidiaryofChemChinain2018,anytransactionsbetweenAnponandsubsidiariescontrolledbyChemChinaperformedin2018,donotconstituterelatedpartytransactionsfortheCompany. II. IntroductiontotheRelatedPartiesandTheirRelationshipswiththeCompany 1. JiangsuHuaiheChemicalCo.,Ltd.(legalrepresentative:ChenHongbo;registered address:YutaiCounty,JiangsuProvince)hasregisteredcapitalofRMB24.7million andmainlyundertakesthebusinessesrelatedtomanufacturingandsaleofchemical products.ThemainfinancialdataasofDecember31,2018are:operatingrevenueof RMB818.01million,netprofitofRMB7.6million,totalassetsofRMB532.86million, netassetsofRMB126.63million. RelationshipwiththeCompany:ItisalegalpersoncontrolledbyChemChina,the actualcontrolholderoftheCompany.AccordingtotheArticle10.1.3(2)oftheRules ofShenzhenStockExchangefortheListingofStocks,itisarelatedpartyofthe Company. Analysisofperformancecapability:TothebestknowledgeoftheCompany,Jiangsu HuaiheChemicalCo.,Ltd.producesandoperatesnormallyandisingoodoperational andfinancialconditionsandthushasagoodperformancecapability.Aftersearching onthewebsiteofdisclosureofenforcementinformationofChina,itisnotadishonest partysubjecttoenforcement. 2. ZhonglanInternationalChemicalCo.,Ltd.(legalrepresentative:YangHongbin; registeredaddress:No.1202-1207,12/F,No.62North4thRingWestRoad,Haidian District,Beijing)hasregisteredcapitalofRMB100millionandmainlyundertakes thewholesalechemicalproducts,technologyimportandexport,technologyand informationconsultingservices.ThemainfinancialdataasofDecember31,2018are: operatingrevenueofRMB3,995.68million,netprofitofRMB12.21million,total assetsofRMB729.89million,netassetsofRMB-17.53million. actualcontrolholderoftheCompany.AccordingtotheArticle10.1.3(2)oftheRules ofShenzhenStockExchangefortheListingofStocks,itisarelatedpartyofthe Company. Analysisofcontractperformancecapability:TothebestknowledgeoftheCompany, ZhonglanInternationalChemicalCo.,Ltd.producesandoperatesnormallyandisin goodoperationalandfinancialconditionsandthushasagoodcontractperformance capability.Aftersearchingonthewebsiteofdisclosureofenforcementinformationof China,itisnotadishonestpartysubjecttoenforcement. 3. Bluestar(Beijing)ChemicalMachineryCo.,Ltd.(legalrepresentative:Kang Jianzhong;registeredaddress:No.5,XingyeStreet,BeijingEconomicand DevelopmentZone)hasregisteredcapitalofRMB200millionandmainlyundertakes thebusinessesrelatedtoproductionofchemicalmachineryandequipment,production oftypeIIIpressurevessels,design,maintenanceandinstallationofchemical machineryandequipment,technicalconsultation,technicalservices,technicaltraining. ThemainfinancialdataasofDecember31,2018are:operatingrevenueof RMB470.21million,netprofitofRMB31.29million,totalassetsofRMB1,196.24 million,netassetsofRMB721.54million. RelationshipwiththeCompany:ItisalegalpersoncontrolledbyChemChina,the actualcontrolholderoftheCompany.AccordingtotheArticle10.1.3(2)oftheRules ofShenzhenStockExchangefortheListingofStocks,itisarelatedpartyofthe Company. Analysisofcontractperformancecapability:TothebestknowledgeoftheCompany, Bluestar(Beijing)ChemicalMachineryCo.,Ltd.operatesnormallyandisingood operationalandfinancialconditionsandthushasagoodcontractperformance capability.Aftersearchingonthewebsiteofdisclosureofenforcementinformationof China,itisnotadishonestpartysubjecttoenforcement. 4. ShanghaiBranchofZhonglanLianhaiDesignInstituteCo.,Ltd.(Managerof ShanghaiBranch:LiuZhikui;registeredaddress:4/F,No.5656EastHuaxiaRoad, PudongDistrict,Shanghai)hasregisteredcapitalofRMB128millionandmainly undertakesthebusinessesrelatedtoprojectconsultationandevaluation,designand project management, engineering construction (excluding blasting), general operatingrevenueofRMB373.58million,netprofitofRMB15.82million,totalassets ofRMB957.27million,netassetsofRMB630.97million. RelationshipwiththeCompany:ItisalegalpersoncontrolledbyChemChina,the actualcontrolholderoftheCompany.AccordingtotheArticle10.1.3(2)oftheRules ofShenzhenStockExchangefortheListingofStocks,itisarelatedpartyofthe Company. Analysisofcontractperformancecapability:TothebestknowledgeoftheCompany, ShanghaiBranchofZhonglanLianhaiDesignInstituteCo.,Ltd.operatesnormally andisingoodoperationalandfinancialconditionsandthushasagoodcontract performancecapability.Aftersearchingonthewebsiteofdisclosureofenforcement informationofChina,itisnotadishonestpartysubjecttoenforcement. III. MainContentofRelated-PartyTransactions 1. Maincontent (1)Allrelated-partytransactionsbetweenAnponandtherelevantrelatedparties shouldbecarriedoutbasedonmarkettermsandaccordingtotheprinciplesof voluntariness,equality,mutualbenefit,justiceandfairnessandwithoutprejudice totheinterestsoftheCompany. (2)Ifthereisanyavailablestatefixedprice,thenthestatefixedpriceshallprevail;if thestatefixedpriceisinapplicableornotapplicableanymore,thenthemarket priceshallprevail;ifthemarketpriceisinapplicableornotapplicableanymore, thenbothpartiesshalldeterminetheexactandfairpricingstandardstheybelieve tobebasedonrelevantdata. 2. Signingoftransactionagreement Anponwillconcludecontractswiththerelevantrelatedpartiesaccordingtoits productionandoperationrequirementsanditsordinarycourseofbusinesspractices. IV. PurposeofRelated-PartyTransactionanditsImpactontheCompany Theserelated-partytransactionsareentailedbytheconsolidationofthefinancial statementsoftheCompanyandarenecessaryforthedailybusinessoperationofAnpon. adverselyaffecttheinterestsoftheCompanyanditsnon-relatedpartyshareholders,as wellastheindependenceoftheCompany. V. IndependentDirectors’Opinions TheCompany’sindependentdirectorshavegivenseparateopinionsontherelatedparty transactionsmatter:TheCompanymakesreasonableexpectationonthenewrelated-party transactionsaccordingtothestatusoftheacquisitionof100%oftheEquityInterestsin Anpon.Allsuchtransactionsshallconformtorelevantnationallawsandregulations,as applicable,andmarket-orientedprinciples,andshallnotinfluencetheindependenceofthe CompanyordamagetheinterestsoftheCompanyanditsothershareholders.The decision-makingproceduresfortheserelatedpartytransactionsconformtotheCompany LawofthePeople’sRepublicofChina,theRulesofShenzhenStockExchangeforthe ListingofStocks,theArticlesofAssociationandotherlawsandregulations.The independentdirectorsagreetosubmittheproposaltotheshareholdersforapproval. VI. OpinionofGuotaiJun’anSecuritiesCo.,LtdastheFinancialConsultant Afterverification,theindependentfinancialconsultantisoftheopinionthatthenew estimatedrelated-partytransactionsintheordinarycourseofbusinessofADAMALtd.are necessaryforthedailybusinessoperationoftheCompany.Pricingoftheserelated-party transactionsfollowsthemarketprice.Thesetransactionsdonotharmtheinterestofsmall andmediumshareholdersoftheCompanyoraffectindependenceoftheCompany. Aforementionedtransactionmattershavebeenapprovedatthe14thMeetingofthe8th sessionoftheBoardofDirectorsoftheCompany,onwhichoccasionrelateddirectors withdrewfromthevoting,independentdirectorsexpressedaffirmativeopinionsand necessaryprocedureswereimplemented.Therelated-partytransactionmatterissubjectto approvaloftheshareholders.CNACandJingzhouSanondaHoldingCo.,Ltdasrelated shareholderswillwithdrawfromthevoting.Abovedeliberationproceduresareinlinewith theCompanyLaw,AoAoftheCompanyandrelevantrules.Theindependentfinancial consultantdoesnothaveobjectiontothematterofnewestimatedrelated-partytransactions for2019intheordinarycourseofbusinessoftheCompany. VII. DocumentsforFutureReference 1.Theresolutionmadeatthe14thMeetingofthe8thsessionoftheBoardofDirectorsof theCompany; 3.OpinionofGuotaiJunanSecuritiesCo.,LtdonNewExpectedRelatedParty TransactionsintheOrdinaryCourseofBusinessin2019oftheCompany. TheAnnouncementisherebygiven. TheBoardofDirectorsofADAMALtd. April30,2019