Sifangda: Announcement on investment in idle funds

Henan Sifangda Superhard Materials Co., Ltd. (hereinafter referred to as the “Company” Board of Directors in 2013) issued the second session of the Board of Directors on November 27th by direct delivery, telephone or email to all directors, supervisors and senior executives. Notice of the 18th meeting (hereinafter referred to as "this meeting" or "meeting"). The meeting was held on-site at the meeting room on the fourth floor of the company at 9:00 on December 10, 2013.

The meeting should have 9 directors and 9 actual directors. All supervisors and senior management of the company attended the meeting. The meeting was held in compliance with the relevant provisions of the Company Law and the Articles of Association. The meeting was presided over by Mr. Fang Haijiang, the chairman of the board of directors. The directors of the meeting carefully reviewed the topics of the meeting and passed the “investment on the investment of Debon Innovation Capital Xinghao Capital Starlight III (1) with its own idle funds. No.) Proposal for the Special Asset Management Plan and form the following resolution:

After full discussion by the board of directors, the company agreed to subscribe for the special asset management plan share (category B) of Debon Innovation Capital Xinghao Capital Starlight III (No. 1) with its own idle capital of RMB 10 million. The investment period is 36 months, but not More than 48 months from the date of entry into force of the asset management contract. (For details, please refer to Announcement 2013-055)

The result of the vote was 9 votes in favor, 0 votes against, and 0 abstentions.

Special announcement.

Henan Sifangda Superhard Materials Co., Ltd. Board of Directors

December 11, 2013

Grinding and polishing are the same mechanical movement, the principle is the same. But for surface quality, the surface finish of polishing is higher than that of grinding. In fact, polishing fluid can be said to be the last process of grinding, grinding and polishing can be realized on the same plane polishing machine at the same time. Grinding is divided into rough grinding, fine grinding, polishing is divided into rough throwing, fine throwing. Most of the time, we have three processes to process the surface quality of products: rough grinding, fine grinding, fine polishing. With these three processes, the workpiece surface flatness, parallelism, roughness is quite high. Some customers do not have such high accuracy requirements, especially roughness requirements are not so high, so they only use the first two processes, or the fine grinding process. Specific to see the quality of the workpiece surface itself, as well as customer requirements to achieve the quality.