Dacheng Successfully Sign a Contract with Kaisheng Technology Group for the Compliance System Construction Project

Recently, Dacheng Law Offices, relying on its rich experience and professional service programs in the areas of compliance management and risk management, has won the winning bid for the Compliance System Construction Project of Kaisheng Technology Group ("Kaisheng Group" or the "Company"), and has successfully signed a contract with Kaisheng Group. Guang Han, a senior partner of Dacheng Beijing Head Office, will be the person responsible for the Project, and the team consists of Zou Xiaodong, Zhang Lijie, Zhou Tianhui and Wang Ruoxuan.

The project team will give full play to its experience advantages in providing legal services on compliance for China National Petroleum Corporation and other centrally-administered state-owned groups, Guangdong Communications Group, Guangxi Zhongheng Group, Guangdong Travel Service Group and other local state-owned pilot entities, as well as Xinao Group and other large private enterprise groups. The project team will, on the basis of Kaisheng Group's existing compliance management system, adopt the method of "improvement" and "integration" to achieve the coordinated objectives of various management tools, and build a compliance management system that complies with the relevant requirements of the State Council for the "construction of a central enterprise under the rule of law" and the "year of strengthening compliance management" for central enterprises, the requirements of compliance management for China National Building Material Group Co., Ltd. ("China National Building Material Group"), and the strategic positioning of Kaisheng Group, which is in line with the coordination and integration of other management systems/tools such as internal control, legal affairs, risk management, internal audit, discipline inspection and supervision. The project team will, based on the effectiveness evaluation of Kaisheng Group's compliance management system as well as the identification and assessment of compliance risks, come up with an optimization plan for the construction of compliance management system, and carry out the special construction of compliance in key areas while improving the compliance management system, carrying out compliance risk management, strengthening the operational mechanism, and attaching importance to the compliance culture.

Dacheng, with Mr. Guang Han as the principal, has established a team of lawyers with strength in all areas of expertise. We are confident that, together with the Compliance Team of Kaisheng Group, the project will promote Kaisheng Group's compliance management to a new level, and lay a solid foundation for Dacheng to build itself into a world-class glass material industrial group with international competitiveness at an early date.

Kaisheng Group is a second-level wholly-owned subsidiary of China National Building Material Group, which is directly managed by the State-owned Assets Supervision and Administration Commission of the State Council. It is an important leading enterprise in the new materials business of the Group. Kaisheng Group has vigorously developed national strategic emerging industries, endeavored to overcome technical difficulties in the field of new glass materials, and has established a "3 + 1" strategic development layout, i.e., with its General Research Institute of Glass New Materials as its scientific and technological support, it will vigorously develop display materials, application materials, new energy materials, high-quality float glass and special glass industries industries. It has two listed companies: Kaisheng Technology Group (SH 600522) and Luoyang Glass (SH 600876, HK 01108). Kaisheng Group adheres to scientific and technological innovation -driven industrial development. In 2021, the company's total assets are expected to be CNY90.4 billion, with an operating revenue of CNY33.3 billion and total profit of CNY2.1 billion. During the 14th Five-Year Plan period, Kaisheng Group will become a world-class high- tech glass industry group with a revenue of RMB100 billion and a profit of RMB10 billion.