StockCode:000553(200553)  StockAbbreviation:ADAMAA(B)NO.2019-32
                        ADAMALtd.

  AnnouncementontheSigningofSupplementalFinancialServicesAgreementinaRelated-PartyTransactionwithChemChinaFinance
                          Co.,Ltd.

TheCompanyandallmembersoftheCompany’sBoardofDirectorsconfirmthatallinformationdisclosedhereinistrue,accurateandcomplete,withnofalseormisleadingstatementormaterialomission.
I．BasicInformationontheRelatedPartyTransaction
Withtheapprovalofthe2ndInterimShareholdersMeetingin2017,theCompanysignedaFinancialServicesAgreement(hereinafterreferredtoasthe“OriginalAgreement”)withChemChinaFinanceCo.,Ltd.(hereinafterreferredtoasthe“FinanceCompany”)onSeptember22,2017.Fordetails,pleaserefertotheAnnouncementonProvidingFinancialServicestotheCompanybytheFinanceCompany(announcementnumber2017-48)disclosedonAugust16,2017.
OnMarch29,2019,theCompanypurchased100%oftheequityinterestsinJiangsuAnponElectrochemicalCo.,Ltd.(“Anpon”).TheFinanceCompanyprovidedfinancialservicestoAnponpriortoitsacquisitionbytheCompany,andiswillingtocontinuetoprovideitwithfinancialservices.Therefore,theCompanyplanstosignaSupplementalFinancialServicesAgreementwiththeFinanceCompanytorevisecertainclausesoftheOriginalAgreement.TheFinanceCompanyisasubsidiarycontrolledbyChinaNationalChemicalCorporationLtd.(hereinafterreferredtoas“ChemChina”).AccordingtotheListingRulesofShenzhenStockExchange,theFinanceCompanyisarelatedpartytotheCompanyduetothecommoncontrolbyChemChina.
Therelated-partytransactionmatterhasbeenreviewedandapprovedatthe14thMeetingofthe8thsessionoftheBoardofDirectorsoftheCompany.AmongthefivedirectorsoftheCompany,therewerefouraffirmativevotes,zeronegativevotesandzeroabstentions,whiletheonerelated-partydirector(Mr.YangXingqiang)refrainedfromvoting.
Therelated-partytransactionmattershallbefurtherapprovedbytheshareholders.ChinaNationalAgrochemicalCo.,Ltd.(hereinafterreferredtoas“CNAC”),andJingzhouSanonda
HoldingsCo.,Ltd.willrefrainfromvoting.
II.IntroductiontotheRelatedParty
1.BasicInformationoftheRelatedParty

  NameoftheRelatedParty:ChemChinaFinanceCo.,Ltd.

  RegisteredAddress:No.62,WestoftheNorthFourthRingRoad,Haidiandistrict,
                  Beijing

  OwnershipProperty:LimitedLiabilityCompany

  UnifiedSocialCreditCode:91110000100019622W

    LicensedFinancialInstitutionCode:L0100H211000001

    LegalRepresentative:ShiJie

    RegisteredCapital:RMB841.225million

    DateofEstablishment:May14th,1996

  Businessscope:handlingfinancialandfinancingconsultants,creditcertificatesand
  relatedconsultingandagencyservicesformembercompanies;assistingmember
  companiesinreceivingandpayingtransactionfunds;approvedinsuranceagency
  business;providingguaranteestomembercompanies;handlingentrustedloansand
  investmentsamongmembercompanies;handlingbillacceptanceanddiscountingfor
  membercompanies;internaltransfersettlementamongmembercompaniesanddesign
  ofcorrespondingsettlementandliquidationarrangement;absorptionofdepositsfrom
  membercompanies;offeringloans,financingandleasingformembercompanies;
  inter-banklending;underwritingcorporatebondsandfixed-incomesecurities
  investments.(Enterprisesshallindependentlyselectoperatingprojectsandcarryout
  businessactivitiesincompliancewithlaws;operatingprojectsthataresubjectto
  approvalaccordingtolawsandtheapprovalofrelevantdepartments;Noengagementin
  anybusinessactivitythatisforbiddenorrestrictedbythemunicipalindustrypoliciesis
  allowed.)

  Creditstatus:Aftersearchingonthewebsiteofdisclosureofenforcementinformation
  ofChina,FinanceCompanyisnotadishonestpartysubjecttoenforcement.

  ShareholdersandtheirShareholdingProportion:

  TheFinanceCompanyisjointlyfundedbyChemChinaandthreeofitssubsidiaries.The

  shareholdersandtheirshareholdingproportionareasfollows:

  ChemChinaholding49.41%,ChinaBlueStar(Group)Co.,Ltdwitharatioof26.88%,
  ChinaHaohuaChemicalGroupCo.,Ltd.witharatioof15.81%andCNACwitharatio
  of7.9%.
3．FinancialStatusoftheFinanceCompany
Asoftheendof2018,thetotalassetsoftheFinanceCompanywereRMB13.37billion,totalliabilitiesRMB11.99billionandownershipequityRMB1.38billion.ItsrevenuereachedRMB408.086millionandtotalprofitRMB99.164million.Ithasacapitaladequacyratioof16.96%.
4.RelationsbetweenRelatedParties
Thecontrollingshareholderofthecompany,CNAC,isawholly-ownedsubsidiaryofChemChina.TheFinanceCompanyisaholdingsubsidiaryofChemChina.Therefore,boththeCompanyandtheFinanceCompanyarecontrolledbyChemChina.
III.PricingPrincipleoftheRelatedPartyTransaction
Thisrelatedpartytransactionisbasedonthepricingprincipleofsimilarservicesinthemarket,andthepriceofthisrelatedpartytransactionisfair.
IV.ContentsoftheSupplementalFinancialServicesAgreement
1.ThefinancialservicesundertheOriginalAgreementshallbegrantedbytheFinance
    CompanytoeachoftheCompanyandAnponseparately.
2.Anpon,uponsigningtheconfirmation,confirmsitsconsenttoreceivethefinancial
    servicesaccordingtotheOriginalAgreementattachedasAnnexAofthisAgreement,
    includingallrightsandobligationsderivingthereof.
3.Article1(3)ofsectionII“Services”oftheOriginalAgreementshallberevisedas
    follows:

    Theoriginalwordings:

  “PartyA'sdailymaximumdepositbalanceandinterestinPartyBshallnotbemore
    thanRMB300millionyuaninprinciple”.

    Therevisedwordings:


    “PartyA'sTheaggregateddailymaximumdepositbalanceandinterestinPartyB
    madebyPartyAandAnponshallnotbemorethanRMB400millionyuanin
    principle”.

  4.Excepttheaboverevisions,nootherchangeismadetotheOriginalAgreement.
V.RiskAssessment
OnMarch21,2019,theCompanydisclosedtheFinanceCompany'sriskassessmentreportfor2018onthewebsiteofJuchaoInformation,statingthattheFinanceCompanyhasalegallyvalidFinancialLicenseandBusinessLicenseforLegalPersonsofEnterprises;noviolationagainstthe"AdministrativeMeasuresforFinancialCompaniesofEnterpriseGroups"promulgatedbytheChinaBankingRegulatoryCommissionhasbeenidentified;anditsvariousregulatoryindicatorSAReinlinewiththerequirementsofArticle34oftheMeasures.
The14thmeetingofthe8thsessionoftheBoardofDirectorsoftheCompanyapprovedtherevised"RiskandEmergencyDisposalPlanofADAMALtd.forDepositsinChemChinaFinanceCo.,Ltd."toprotectthesafetyandliquidityoftheCompany'sdepositsintheFinanceCompany.
VI.PurposeofRelatedPartyTransactionanditsImpactontheCompany
Thisrelated-partytransactionisconducivetofurtheroptimizethefinancialmanagementofAnpon,reducethecostofcapitalandimprovetheefficiencyofcapitaloperation.ItisinlinewiththeinterestsoftheCompanyandallshareholders,andwillnothaveanimpactonthenormalbusinessactivitiesandfinancialsituationoftheCompany.
VII.StatusofDifferentKindsofRelatedPartyTransactionsbetweentheCompanyandChemChina
FromJanuary1,2019tillthedateofthisAnnouncement,thestatusofdifferentkindsofrelatedpartytransactionsbetweentheCompanyandChemChinaareasfollows:
1.ThebalanceofthedepositsoftheCompanydepositedintheFinanceCompanyisRMB
  300million,whichhadbeenapprovedbythe2ndInterimShareholdersMeetingofthe
  Company.
2.Thematterofrelatedpartytransactionsintheordinarycourseofbusinessin2019witha
  totalamountofRMB1,914.43millionwhichhadbeenapprovedbythe1stInterim
  ShareholdersMeetingin2019.

3.AnponacquisitionbytheCompanywithatotalamountofRMB820millionwhichhad
  beenapprovedbythe12thmeetingoftheBoardofDirectorsMeeting.
VIII.IndependentDirectors’Opinions
ThisrelatedpartytransactioniscausedbytheCompany'sacquisitionoftheequityinterestinAnpon.ThepartiesagreetorevisetheOriginalAgreementtoreflecttheactualbusinessneedsofAnpon.ItisconducivetoimprovingcapitalreturnsandcapitaloperationcapacityofAnpon.Thisrelatedpartytransactionisbasedontheprinciplesoffairandopen.Itdoesn’tharmtheinterestsoftheCompanyanditsshareholders.Thedecision-makingproceduresforthisrelatedpartytransactionconformtotheCompanyLawofthePeople’sRepublicofChina,theRulesofShenzhenStockExchangefortheListingofStocks,theArticlesofAssociationandotherlawsandregulations.Theindependentdirectorsagreetosubmittheproposaltotheshareholdersforapproval.
IX.OpinionofGuotaiJun’anSecuritiesCo.,LtdastheFinancialConsultant
Afterverification,theindependentfinancialconsultantisoftheopinionthatthisrelatedpartytransactionhasbeenapprovedatthe14thMeetingofthe8thsessionoftheBoardofDirectorsoftheCompany,onwhichoccasionrelateddirectorwithdrewfromthevoting,independentdirectorsexpressedaffirmativeopinionsandnecesSARyprocedureswereimplemented.Therelated-partytransactionmatterissubjecttoapprovaloftheShareholders.CNACandJingzhouSanondaHoldingCo.,Ltdasrelatedshareholderswillrefrainfromthevoting.ThedeliberationprocedureSAReinlinewiththeCompanyLaw,AoAoftheCompanyandrelevantrules.TheindependentfinancialconsultantdoesnothaveobjectiontothesigningoftheSupplementalFinancialServicesAgreement.
X.DocumentsforFutureReference
1.Theresolutionmadeatthe14thMeetingofthe8thsessionoftheBoardofDirectorsof
  theCompany;
2.Independentdirectors’priorwrittenapproval;
3.Independentdirectors’opinions;
4.OpinionofGuotaiJunanSecuritiesCo.,LtdontheSupplementalFinancialService
  AgreementinaRelated-PartyTransactionwithChemChinaFinanceCo.,Ltd.
TheAnnouncementisherebygiven.

TheBoardofDirectorsofADAMALtd.
                April30,2019