Sanjiang Chemical Co., Ltd, a wholly-owned subsidiary of China Sanjiang Fine Chemicals Company (HKG:2198), has entered into trust agreements with China Zheshang Bank Company Limited (CZSB); and entrusted loan agreements with CZSB and Xinhu Zhongbao Co., Ltd.

Pursuant to the trust agreements, Sanjiang Chemical will entrust the fund of an aggregate of RMB150 million to CZSB, and CZSB will arrange for the advancements of the fund to entities as approved by Sanjiang Chemical. As arranged by CZSB, Sanjiang Chemical agreed to advance the fund of an aggregate of RMB150 million to Xinhu Zhongbao as short-term loans pursuant to the entrusted loan agreements.