Stock Code: 000553(200553) Stock Abbreviation: Sanonda A(B)
Announcement No. 2018-42
Hubei Sanonda Co., Ltd.
Special Report on the Deposit and Actual Usage of the Raised Funds
in the First Half-Year of 2018
The Company and all members of its Board of Directors confirm that all the information disclosed herein is true, accurate, and complete with no false or misleading statement or material omission.
Hubei Sanonda Co., Ltd. (the “Company”) prepared the Special Report on 2018 Half- Year Deposit and Actual Use of Funds Raised from Non-Public Offerings in accordance with‘Regulatory Guidelines for Listed Companies No.2-Regulatory Requirements for the Management and Use of Funds Raised by ListedCompanies’ of China Securities Regulatory Commission (CSRC Notice[2012] No.44),‘Guidelines for the Standard Operation of the Companies Listed in Shenzhen StockExchange’ (2015 Amendment) issued by Shenzhen Stock Exchange as follows:
I. General Information About the Raised Funds
1. Amount and the Time of Receiving the Raised Funds
After receiving the approval of China Securities Regulatory Commission for the issuance of shares to China National Agrochemical Co., Ltd. to acquire assets and raise supporting funds (CSRC Permits[2017] No.1096), the Company issued 104,697,982 ordinary A shares in December 2017, at the issue price of RMB14.9 per share, raising a total amount of RMB1,559,999,931.80. After deducting the underwriting fees of RMB28, 079,998.78, the net amount received by the Company was RMB1, 531,919,933.02. The net amount was received on 27 December 2017 and was verified by Deloitte Touche Tohmatsu
Certified Public Accountant LLP which issued a capital verification report (De Shi Bao (Yan) Zi (17) No.00540).
2. The Used Amount of the Raised Funds in the Previous Year
As at 31 December 2017, the Company had used RMB28,080,358.78 of the raised funds in that year, and the balance that had not yet been used was RMB1, 531,919,573.02.
3. The Used Amount of the Raised Funds in the First Half-Year of 2018 and the Current Balance
In the first half year of 2018, the Company used RMB 276.53 million to replace the capital previously invested in the designated projects, and RMB 12.68 million related to the stamp duty and audit fee on the above replacement. As at June 30, 2018, the balance of the raised funds was RMB11,201,765.4 including net interest (after deducting the relevant bank charges) of RMB 1,253,909,049.8.
II. Deposit and Management of the Raised Funds
In order to standardize the management and the usage of the raised funds, and to protect the rights of investors, based on the actual requirements, the Company made the Raised Funds Management Policy in accordance with the laws, regulations, and regulatory documents such as Management Measures for Initial Public Offering of Shares and Listing, Notice on Further Standardize the Use of Raised Funds for Listing Companies, and Listing Rules of Shenzhen Stock Exchange etc. The Raised Funds Management Policy specifies the deposit, usage, change of the designated projects, management and supervision of the raised funds.
The Company has signedtheTrilateral Supervision Agreement for Special Account Deposit withGuotaiJun’an and Jinzhou Sanwan Branch of China Construction Bank Co., Ltd.on January 22, 2018, and the Four-party Supervision Agreement for New Fund-
raising Account withGuotaiJun’an Securities Co., Ltd, Shanghai Branch of HSBC Bank (China), ADAMA AGAN LTD, and ADAMA MAKHTESHIM LTD on June
25th,2018. During the reporting period, the parties strictly performed their obligations under the above supervision agreements.
The details of the opening of the special accounts and deposit of the raised funds are as
follows:
Unit: Yuan
||||
|-|-|-|
|Bank|Account No.|Balance of the account as at June30, 2018|
|Jingzhou SanwanBranch of ChinaConstruction Bank|42050162610109000999|1,253,909,049.80|
|Shanghai Branch ofHSBC|715-039582-001|0|
|Shanghai Branch ofHSBC|715-039574-001|0|

III. Actual Usage of the Raised Funds in the First Half-Year of 2018
For details of the actual use of the raised funds in the first half-year of 2018, please see
the appendix Comparison Table for the Use of Raised Funds.
IV. The Usage of the Raised Funds on the Changed Designated Projects
The Company did not change any designated projects as at June 30, 2018.
V. Problems in the Usage and Disclosure of the Raised Funds
The Company has timely, truly, accurately and completely disclosed relevant information
on the raised funds. There is no situation where the management of the raised funds
violates the regulations of China Securities Regulatory Commission or Shenzhen Stock Exchange.
Board of Directors of Hubei Sanonda Co., Ltd. August 27, 2018
Appendix 1: Comparison Table for the Use of Raised Funds
Comparison Table for the Use of Raised Funds
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Total amount of raised funds||||1,531,919,933.02|||Total investment of raised funds for thereporting period|||28,921|||
|Total amount of raised funds with change of purpose during thereporting period||||——|||Accumulated investment amount of raisedfunds|||31,729.04|||
|Accumulated amount of raised funds with change of purpose||||——|||||||||
|Percentage of accumulated amount of raised funds with changeof purpose||||——|||||||||
|Committedfund-raisinginvestmentprojects|Whether theproject has beenchanged,including partchange (if any)|Total committedinvestmentamount|Totalinvestmentamount afteradjustment (1)||Investmentamount for thereportingperiod|Accumulatedinvestmentamount as at theend of thereporting period(2)||Investmentprogress as atthe end ofperiod (%)(3)=(2)/(1)|Date ofprojectsreachingintendeduseablecondition|Realizedbenefits of thereportingperiod|Whether theexpectedbenefits areachieved|Whether thefeasibility of theproject haschangedsignificantly|
|Huaianpesticidepreparationcenter project|No|24,980|24,980||0|0||0%|2019|It will be clearafter thecompletion ofthe project|N/A|No|
|Productdevelopmentand registrationproject|No|93,507|93,507||13,103|13,103||14%|2019|It will be clearafter thecompletion ofthe project|N/A|No|
|ADAMA fixedasset investmentproject|No|66,204|66,204||5,913|5,913||9%|2019|It will be clearafter thecompletion ofthe project|N/A|No|
|Payment fortransaction cost,taxes and fees|No|13,600|13,600||9,905|12,713.04||93.48%|——|——|N/A|No|
|Subtotal of non-public offeringinvestmentproject|——|198,291(Note )|198,291(Note )||28,921|31,729.04||16%|——|——|——|——|
|Investment Areas of the Over Raised Funds||||||N/A|||||||
|Aggregatedamount|——|198,291|198,291||28,921|31,729.04||16%|——|——|——|——|
|Situations failing to meet the planned schedule or achieve expected benefits and the reasons(according to the specific investment project)||||||N/A|||||||

|||
|-|-|
|Explanation of projects whose feasibility changed significantly|N/A|
|Amounts, usage and progress of the excess-raised funds|N/A|
|Changes of location of investment programs||
|Changes of implementation of the investment programs||
|Internal funds previously invested and replacement from the funds raised|The 5th meeting of the 8th session of the Board of Directors of the Company on June 25, 2018 approved theProposal on Utilization of Part of the Funds Raised in December 2017 for Replacing the Capital PreviouslyInvested in the Designated Projects Included in the 2017 Major Assets Restructuring to allow the Companyto utilize RMB276,530,000 of the Raised Funds to replace capital previously invested in the DesignatedProjects. The Company has completed the replacement by June 30, 2018.|
|Use of idle funds to temporarily supplement working funds|N/A|
|Balance amount of raised funds after the completion of the designated funds and the reasons|N/A|
|Purpose and hereabouts of unused funds|The unused funds are deposited in the special account and is going to be continuously used on the designatedprojects.|
|Other issues in the usage and disclosure of the raised funds|N/A|

Note : The Company intends to raise funds of no more than 198,291RMB’0000 in the supporting finance program, while the actual funds raised was 155,999,99RMB’0000 on December 27, 2017.