Yizheng Chemical Fiber: Major Asset Restructuring Progress Announcement

The board of directors and all directors of the company guarantee that there is no false record, misleading statement or major omission in the contents of this announcement, and shall bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.

China

Yizheng chemical fiber Limited by Share Ltd ("company" or "company") actual controller China Petrochemical Corp ("Sinopec group") intends to carry out a major asset reorganization of the company. After application by the company, the company's stock has been suspended since June 12, 2014. During the suspension period, the company fulfilled the obligation of information disclosure in a timely manner, and issued a notice on the progress of major asset reorganization every five trading days.

After preliminary demonstration, the major asset reorganization of this plan involves the related business and assets of the petroleum engineering section affiliated to Sinopec group.

During the suspension period

Sinopec group and relevant intermediary agencies actively promote the work of this major asset reorganization.

At present, agencies are still conducting due diligence, auditing and evaluation on the assets to be covered in this major asset reorganization.

Due to the large scope of assets and matters involved in the major asset reorganization, the relevant investigations such as due diligence, auditing and asset appraisal will still take some time. At the same time, the company and the actual controller still need to make policy consultation and work communication with the relevant regulatory authorities on matters related to the major asset reorganization plan. After application by the company, the company's stock will remain suspended for more than 30 days from August 13, 2014.

In August 20, 2014 and August 27th, the company has announced the announcement of the progress of major asset reorganization of Sinopec Yizheng chemical fiber company (pro 2014-031, pro 2014-035) in accordance with the relevant provisions.

As of the date of this announcement, major assets

The relevant plan is still under discussion, and there is uncertainty in the matter. In order to safeguard the interests of investors and avoid a significant impact on the company's share price, the company's stock will continue to be suspended.

During the suspension period, the company will pay close attention to the progress of the matter and fulfill its disclosure obligations in a timely manner.

When the matter is confirmed, the company will announce and resume the business in time.

We invite investors to pay attention to investment risk.

Notice hereby

Board of directors

Chao Yang Wu

The Secretary of the board of directors

China, Nanjing, September 9, 2014