Sector analysis: 1.

Air purification: During the 2017 reporting period, the company submitted an application to the China Securities Regulatory Commission for the public issuance of A-share convertible corporate bonds and was accepted. According to the public issuance of A-share convertible corporate bonds plan, the total amount of the convertible bonds issued this time will not exceed RMB.

114 million yuan (including 114 million yuan) for the construction project of an annual output of 48,000 units of civil/commercial/collective protection air purification units.

During the reporting period of the 2017 interim report, the company's main business continued to maintain high growth and profitability was further improved; at the same time, in order to further integrate resources, gather talents, expand the company's business application fields, and improve the industrial chain, the company launched the acquisition of Suzhou Youyuan Environmental Technology

Ltd., and invested in the establishment of Beijing Zaisheng Clean Air Technology Co., Ltd., which laid the foundation for the company to expand from a material-based enterprise to an application-oriented company in the field of clean air.

2.

Pension shareholdings: As of March 31, 2020, Basic Pension Insurance Fund 303 Portfolio ranked 10th among the company’s top ten shareholders, with a shareholding ratio of 0.58% of the company’s total share capital.

3.

Biosafety: The company's wholly-owned subsidiary Suzhou Youyuan has strong competitiveness in biosafety protection. It has participated in the second phase of Shenlian Biotechnology's P3 large animal house project and the Dahuanong avian influenza H7N9 inactivated vaccine P3 workshop project.

4．

Energy saving and environmental protection: In June 2017, it was announced that the company planned to acquire 100% equity of Youyuan Environment for 440 million yuan in cash.

Youyuan Environment is a downstream enterprise of the company and is an environmentally friendly enterprise engaged in "indoor clean air solutions".

Announced on the evening of November 18, 2015, the company and Fujian Yingke Venture Capital Co., Ltd. planned to jointly launch the "Zaisheng Yingke Energy Saving and Environmental Protection Industry M&A Fund". The total scale of the industry M&A fund is 500 million yuan, and the company plans to invest 1.5

billion, enjoy the rights of limited partners and assume corresponding obligations; 5.

PM2.5: The company's business includes projects such as glass fiber composite materials to prevent and control PM2.5.