Poly Union: Subsidiary receives criminal indictment

Poly Union announced on the evening of August 19 that its subsidiary, Henan Jiulian Shenwei Explosive Materials Co., Ltd., recently received an "Indictment" from the People's Procuratorate of Xiangcheng County. The indictment concerns the alleged criminal activities of the original Nanyang Shenwei Explosive Co., Ltd. prior to the company's acquisition of Henan Jiulian's equity in 2012. According to the equity transfer agreement signed between the company and the relevant shareholders of the original Nanyang Shenwei, if there are other significant breaches of contract or concealment of major illegal activities by the original Nanyang Shenwei, the company has the right to claim damages from the relevant shareholders of the original Nanyang Shenwei. As the public prosecution case has not yet been heard in court, its impact on the company remains uncertain