(1) Description of business performance

In 2020, the company realized operating income of RMB 1,034,114,400, operating profit of RMB 139,506,700 and total profit of RMB 129,365,900. The company's operating income, operating profit and total profit increased respectively over the same period of the previous year

17.80%, 10.06%, 6.95%. During the reporting period, the company’s revenue and profit increased mainly because the company’s lactic acid sales and sales prices increased; the reason why the increase in operating profit was less than the operating income included: the company’s main raw material corn prices increased significantly, which increased operating costs, and the company’s product prices increased due to contracts Constraints are lagging; the company’s export products are mainly denominated in U.S. dollars, and the appreciation of the renminbi has reduced the company’s export product unit income and increased exchange gains and losses; in the third quarter of 2020, the 200,000 tons of starch project will be put into operation, and the depreciation of fixed assets will increase, which will increase the unit product Manufacturing costs.

(2) Explanation of financial status

At the end of the reporting period, the company’s total assets were RMB 1,736,113,500, an increase of 43.13% from the beginning of the period; the owner’s equity attributable to shareholders of the listed company was RMB 1,300,395, an increase of 103.20% from the beginning of the period, mainly due to the company’s 2020 initial public offering of shares to increase share capital and capital shares. Resulting.

Three, other instructions

The financial data for 2020 contained in this announcement is only preliminary accounting data. It has not been audited by an accounting firm and may differ from the final data disclosed in the annual report. The specific financial data will be disclosed in detail in the company's 2020 annual report. Please pay attention to investors and pay attention to investment risks.

4. Documents available for inspection

1. The comparative balance sheet and profit statement signed and sealed by the company's current legal representative, the person in charge of accounting, and the person in charge of the accounting organization;

2. The internal audit report signed by the person in charge of the internal audit department.

Special announcement.

Board of Directors of Henan Jindan Lactic Acid Technology Co., Ltd.

March 10, 2021