Hongda Xingye (002002) issued an announcement on September 23, 2021: Wang Ziang of East Asia Qianhai Securities Co., Ltd., Zhu Gang of Tianfeng Securities Co., Ltd., Zhang Jun of Cheung Kong Securities Co., Ltd., Yin Peijun of Huafu Fund Management Co., Ltd., Xia Siting of China International Capital Co., Ltd., Lu Xinzhi of Caitong Securities Co., Ltd., Deng Tsuen of Xingzheng Global Fund Management Co., Ltd. Liu Xin, Shanghai Ningquan Asset Management Co., Ltd. Yin Weijia and China Merchants Co., Ltd. Cao Chengan investigated our company on September 17, 2021. The survey was received by Mr. Zhou Yifeng, Chairman of the Board, Mr. Cai Hongbing, Director, Mr. Lin Shaohan, Director and Secretary of the Board, and Mr. Li Tianzi, head of hydrogen Energy Center.

The main contents of this survey are as follows:
(1) the secretary of the board of directors introduces the basic situation of Hongda Industrial Co., Ltd. (hereinafter referred to as "the company"), the development of the four major industrial systems of "hydrogen energy, new materials, large environmental protection and exchange", competitive advantages, development planning, etc. (2) Exchange summary Q: introduce the production scale and main competitive advantages of the company's chlor-alkali products? Answer: the production and operation of the company is good, and the main business is developing steadily. On the basis of doing a good job of chlor-alkali business, the company will vigorously develop hydrogen energy, soil improvement and other businesses to improve business performance and sustainable development capacity. The production scale and market share of chlor-alkali products are in the forefront of the industry, with PVC production capacity of 1.1 million tons / year and caustic soda capacity of 1.1 million tons / year. After years of deep ploughing, the company has a PVC integrated circular economy industrial chain of "comprehensive utilization of resources-electric power-calcium carbide-PVC/ caustic soda / hydrogen energy-by-products and application of soil conditioners-downstream products", establishing a good corporate image and market reputation, and the products sell well all over the country. The company's PVC production base is located in the west of Inner Mongolia, which is rich in coal, raw salt and other resources. the company makes full use of local resources and industrial policy advantages to produce chlor-alkali chemical products by calcium carbide method, has matching calcium carbide production capacity, has obvious raw materials and cost advantages, and the equipment innovation degree and process level of the company's chlor-alkali business are higher than the average level of the same industry. Has a strong competitive advantage. At the same time, the company is committed to innovation, constantly improve the level of research and development, and develop new products to meet the needs of the market. Q: the recent prosperity of the chlor-alkali industry is relatively high, what is the company's outlook for the future market? A: polyvinyl chloride (PVC) is an important organic synthetic material and one of the five general synthetic resins. Because of its excellent chemical corrosion resistance, electrical insulation, flame retardancy, light weight, high strength and easy processing, PVC is widely used in industry, agriculture, construction, electronics, medical, automobile and other fields. It has become the most widely used variety of plastics and occupies an important position in the national economy. At present, PVC is mainly used in packaging materials, electronic materials, water-saving irrigation, agricultural film, building materials products, daily necessities and other modern manufacturing and new materials industries., And can widely replace steel, wood and other traditional industrial raw materials, is "plastic instead of wood, plastic instead of steel, plastic instead of plastic" important raw materials. Under the background of the strategy of "carbon peak and carbon neutralization" put forward by the country, and promoted by the national policy of "replacing wood with plastic, replacing steel with plastic, replacing plastic with plastic" and other policies, the supply of calcium carbide and PVC will be tight, while the application field of PVC will continue to expand, and the demand for PVC will increase year by year. At the same time, affected by the epidemic and other factors, the operating rate of foreign PVC enterprises is low, the export volume of PVC and its products increases, and the supply and demand pattern of the industry continues to improve. Under the influence of many factors, such as rising cost support, rising international oil prices, unstable operation of overseas devices, increased exports and relatively stable demand, the supply and demand of PVC continues to be tight, which forms a strong support for the prosperity of the PVC industry. Q: could you tell me something about the company's hydrogen energy business? A: the state has put forward the policy of "carbon peak and carbon neutralization", and the hydrogen energy industry has ushered in unprecedented opportunities for development. the company has actively implemented the national policy call, combined with its own industrial resources advantages, and vigorously develop the hydrogen energy industry. Hydrogen energy has the characteristics of energy and energy storage. Hydrogen production from chlor-alkali has the characteristics of large scale, low cost and high purity, so it is the best hydrogen source for the development of hydrogen fuel cell vehicles. As a leading enterprise in chlor-alkali industry, Hongda Xingye has rich experience in hydrogen production and has accumulated rich experience in hydrogen production, storage, transportation and filling. The company has been committed to hydrogen storage and application research for a long time, and established Inner Mongolia Hongda hydrogen Energy and New Materials Research Institute to carry out the research, development and application of rare earth hydrogen storage technology and hydrogen storage equipment, as well as the application research of rare earth in new materials. China's first civil liquid hydrogenation plant has been built to carry out liquid hydrogen production, storage and transportation and other related work. At present, the company has accumulated rich experience in hydrogen production, hydrogen storage and energy storage. At the same time, the company cooperates with Beijing Aerospace Test Technology Research Institute, Japan Asahi Kasei, France liquid Air and Japan Toshiba to promote the development of hydrogen industry and to become a leader in hydrogen industry and a comprehensive service provider of hydrogen energy. Q: could you tell me something about the company's hydrogen energy development plan? A: the ecological chain of hydrogen energy industry is relatively extensive., There are many industries involved in upstream and downstream. Combined with its own industrial and resource advantages, Hongda Xingye has increased its investment in the hydrogen energy industry in recent years, focusing on the upstream end of the hydrogen energy industry chain, large-scale hydrogen production, storage, transportation, filling and other links. Committed to becoming a comprehensive service provider of domestic hydrogen energy supply. Hongda Xingye will make every effort to build a 50,000-ton hydrogen energy production project in Wuhai City, Inner Mongolia, which includes an annual production of 30,000 tons of liquid hydrogen and 20,000 tons of high-pressure gas hydrogen. Q: how is the company's progress in rare earth hydrogen storage? A: the scale and efficient storage and transportation of hydrogen have been restricting the development of the whole industry. in view of the pain points of this industry, Hongda Xingye combines its own industrial characteristics and develops the technology of "gaseous, solid and liquid" hydrogen storage. In terms of solid-state hydrogen storage, we combine the advantages of our rare earth industry. The third-generation materials of rare earth La-Ni-based, La-mg-Ni and La-Y-Ni have been developed jointly with the Research Institute in Beijing. after many experiments, the hydrogen storage density has been continuously improved and reached the practical level, and the material cost has been reduced to a reasonable range. The application prospect is very broad. Q: how does the company view the current national policy of "substituting awards for compensation" in the hydrogen energy industry? A: under the background of the policy of "carbon peak and carbon neutralization", the hydrogen industry has ushered in new opportunities for development. The application of hydrogen in the energy field has attracted global attention. How to use hydrogen safely, efficiently and economically has become the most important issue in front of us. The state has put forward the policy of "substituting awards for compensation", which is conducive to the further development of the hydrogen industry and is guided by policies. Actively explore the road of commercialization of hydrogen energy industry, Hongda Xingye actively participate in the development of hydrogen energy industry, with their own practical actions to practice the enterprise's green, circular, low-carbon, sustainable development road. Q: could you tell me something about the company's rare earth plate? A: Baotou Xindamao rare Earth Co., Ltd., the company's holding subsidiary, is a large rare earth production enterprise integrating mineral processing, smelting, separation and deep processing of rare earths. It is one of the earliest enterprises engaged in rare earth processing and separation in China., It has rich advantages in extraction and application development of raw materials such as lanthanum, cerium, praseodymium, neodymium, potassium, samarium, europium, gadolinium, terbium, dysprosium, ytterbium, lutetium, etc., and vigorously develop and promote the application of rare earth promoters, rare earth catalysts, antibacterial materials and rare earths in other new materials. During the reception, full exchanges and communication were carried out in strict accordance with the provisions of the "Information Disclosure Affairs Management system". There has been no leakage of major undisclosed information, and at the same time, a research "commitment" has been signed in accordance with the requirements of the Shenzhen Stock Exchange.

Hongda Hing owner's business: production, sales and comprehensive application of hydrogen, research, development and application of hydrogen storage technology and hydrogen storage equipment; R & D, sales and technical consultation of hydrogen production, hydrogen storage, hydrogen liquefaction and hydrogen filling products; investment, design and construction of hydrogenation stations; hydrogen production and storage, hydrogen liquefaction and hydrogenation business; sales of polyvinyl chloride resin and special materials, caustic soda, soda ash, calcium carbide, hydrochloric acid, liquid chlorine and cement Environmental protection desulfurizer, soil improver, conditioner, heavy metal repairing agent, heavy metal passivator, salt water denatrification, filter membrane, filter material, automobile exhaust rare earth catalytic converter and catalyst, automobile particulate filter and other environmental protection products R & D, sales, desulphurization and denitrification, soil treatment and other environmental remediation projects Research, development and sales of environmental protection rare earth heat stabilizers, rare earth antioxidants and environmental protection processing aids and rare earth chemical materials for polymer materials; research, production and sales of PVC pharmaceutical packaging materials, PVC sheets, plates, PVC agricultural films, special PVC polarizing films, PE films, new high vacuum electronic films, composite packaging materials and other new packaging materials, plastic color printing, plastic products Plastic formwork, plastic architecture and decoration materials research and development, sales; indoor and outdoor decoration design and construction, municipal engineering, garden art design and construction, architectural decoration engineering design and construction; chemical raw materials (except dangerous goods) sales. Industrial investment, enterprise management consulting. To engage in the export business of packaging materials, chemical products (except dangerous goods) and related technologies produced by the enterprise and its member enterprises (except those operated or prohibited by the state); to engage in the import business of raw and auxiliary materials, machinery and equipment, instruments, spare parts and related technologies needed by the enterprise and its member enterprises for production and scientific research (except those goods that are restricted or prohibited by the state) Operate the enterprise feed processing and "three to one supplement" business.

Hongda Xingye 2021 report showed that the company's main income was 3.527 billion yuan, up 34.72% from the same period last year; net profit from its mother was 791 million yuan, up 138.39% from the same period last year; deducting 777 million yuan from non-net profit, up 139.88% from the same period last year; debt ratio 46.87%, financial expenses 129 million yuan, gross profit margin 39.6%.