China Sanjiang Fine Chemicals : CHANGES IN BOARD COMPOSITION

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CHINA SANJIANG FINE CHEMICALS COMPANY LIMITED

中 國 三 江 精 細 化 工 有 限 公 司

(incorporated in the Cayman Islands with limited liability)

(stock code: 2198)

CHANGES IN BOARD COMPOSITION

RESIGNATION OF AN EXECUTIVE DIRECTOR

The board (the ''Board'') of directors (the ''Directors'') of China Sanjiang Fine Chemicals Company Limited (the ''Company'', together with its subsidiaries, the ''Group'') announces that Mr. Niu Yingshang (''Mr. Niu'') has resigned as an executive Director with effect from 15 March 2017 due to his intention to pursue other business opportunities.

Mr. Niu has confirmed that he has no disagreement with the Board and that he is not aware of other matters that need to be brought to the attention of the shareholders of the Company and The Stock Exchange of Hong Kong Limited (the ''Stock Exchange'') in connection with his resignation. The Board is also not aware of any such matters to be brought to the attention of the Stock Exchange and shareholders of the Company.

The Board also takes this opportunity to acknowledge the invaluable contributions of Mr. Niu to the Company.

APPOINTMENT OF AN EXECUTIVE DIRECTOR

The Board is pleased to announce that Mr. Rao Huotao (''Mr. Rao'') is appointed as an executive Director with effect from 15 March 2017.

Mr. Rao, aged 43, graduated from 武漢化工學院 (Wuhan Chemistry Institute*) (currently known as 武漢工程大學 (Wuhan Institute of Technology)) with a bachelor's degree in chemical

process in June 1996. He was accredited as a senior engineer in chemical process in December 2007. He further obtained a master's degree in chemical engineering from Zhejiang University in December 2008. He joined the Group in 2010 as an assistant to the chief general manager of

三江化工有限公司 (Sanjiang Chemical Company Limited*), a wholly-owned subsidiary of the

Company, being responsible for, among others, a project regarding the production of surfactant, a project regarding the production of epoxyethane and ethane and a project regarding the production of polypropylene. Since 2017, Mr. Rao became the chief vice general manager of Sanjaing Chemical Company Limited, being responsible for, among others, a project regarding the production of polypropylene. As at the date of this announcement, Mr.

Rao was also a director of 浙江嘉化集團股份有限公司 (Zhejiang Jiahua Group Company

Limited*), being the controlling shareholder of 浙江嘉化能源化工股份有限公司 (Zhejiang

Jiahua Energy Chemical Industry Company Limited), a company listed on the Shanghai Stock Exchange (stock code: 600273).

Mr. Rao has not entered into any service agreement with the Company. As determined by the Board, Mr. Rao is entitled to receive salaries, allowances and benefits in kind of approximately RMB350,000 per annum in total which is determined with reference to his experience and responsibilities in the Group. Mr. Rao's appointment is for a term of 3 years commenced from 15 March 2017 but he will hold office until the next following annual general meeting of the Company at which he will be eligible for re-election. Mr. Rao's term of office is renewable automatically for successive terms of one year commencing from the day immediately after expiry of the then current term. Thereafter, he will be subject to retirement by rotation and re-election pursuant to the articles of association of the Company.

Save as disclosed herein, Mr. Rao does not hold any other position in the Company or any of its subsidiaries and does not have any relationship with any other Directors, senior management, substantial shareholders or controlling shareholders (as defined in the Rules Governing the Listing of Securities on the Stock Exchange (''Listing Rules'') of the Company as at the date of this announcement. He does not have any interests in shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) as at the date of this announcement. Mr. Rao has not been a director of any public companies the securities of which are listed on any securities market in Hong Kong or overseas in the last three years.

Save as disclosed herein, Mr. Rao has confirmed that there is no information relating to his appointment that is required to be disclosed under Rule 13.51(2) of the Listing Rules, or need to be brought to the attention of the shareholders of the Company.

The Board would like to take this opportunity to welcome Mr. Rao for joining the Board.

By order of the Board

China Sanjiang Fine Chemicals Company Limited GUAN Jianzhong

Chairman and executive Director

People's Republic of China, 15 March 2017

As at the date of this announcement, the Board comprises the following Directors:

Executive Directors:

GUAN Jianzhong HAN Jianhong

RAO Huotao HAN Jianping

Independent non-executive Directors:

SHEN Kaijun PEI Yu

KONG Liang

* For identification purpose only