On the evening of August 29, Meilian New Materials issued an announcement. The Board of Directors of the company deliberated and passed the bill on August 28 and agreed to suspend the construction of Anhui Meixin New Materials Co., Ltd., a subsidiary of the company. Lithium battery wet diaphragm industrialization project, and authorize the director of the company to choose the opportunity to restart the actual demand of the company's new energy sector business.

The company held a meeting of the Board of Directors on March 30, 2021, and agreed to set up a holding subsidiary, Meixin new materials, and invested in the construction of lithium battery wet diaphragm industrialization construction project as the implementation subject. The project is located in Tongling city, Anhui province, with an estimated total investment of 2 billion yuan.

This investment project is planned to be constructed in two phases, of which: the first phase is implemented in two phases, and the first phase is to build four imported diaphragm production lines, which are expected to be completed and put into operation in 2022. In the second phase, two wide imported diaphragm production lines are constructed, which are expected to be completed and put into operation in the fourth quarter of 2023; The second phase of the project is expected to start construction around 2024.

Up to now, four production lines and supporting projects in the first phase of the project have been completed and put into operation; The fifth and six production lines in the second phase of the project have been basically installed, clean workshop and other supporting projects have not yet started construction. The construction land required for the second phase of the project has been purchased and some factory buildings have been completed.

According to the needs of the actual development plan and in combination with developing situation of the industry, the company plans to suspend the follow-up construction work of the first phase, the second phase and the second phase of the lithium battery wet diaphragm industrialization construction project, and ask the board of directors to authorize the directors of the company to choose the opportunity to restart the actual needs of the company's new energy sector business (the second phase of the project will then plan a detailed implementation plan according to the actual market situation and operating conditions of the project).

During the suspended construction period of the project, the company will continue to pay attention to the development trend of the new energy diaphragm industry, grasp the development trend of the industry, and give priority to the follow-up construction work of the second phase of the first phase of the project at an appropriate time, complete the overall completion of the first phase of the project as soon as possible.

This adjustment is a prudent decision made by the company based on the actual development plan. It conforms to the company's strategic development plan and will not adversely affect the normal operation of the company and its subsidiaries, there is no situation that damages the interests of shareholders.