Huafang Co., Ltd. (600448): Tips For The Election Of The Board Of Directors And The Board Of Supervisors

Stock Code: 600448 stock abbreviation: Huafang stock Announcement No.: 2021-004

Notice on general election of board of directors of Huafang Co., Ltd

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and shall bear individual and joint liabilities for the authenticity, accuracy and completeness of the contents.

The term of office of the sixth board of directors of Huafang Co., Ltd. (hereinafter referred to as "the company" or "the company") will be held in 2021

In order to successfully complete the general election of the board of directors (hereinafter referred to as "the current general election"), the,

According to the company law and other relevant laws, administrative regulations, departmental rules, normative documents and the articles of association of the company, the board of directors of the company has announced the relevant matters as follows:

1、 Composition of the seventh board of directors

The seventh board of directors will be composed of nine directors, including three independent directors. The term of office of the directors shall be three years from the date of election and approval by the relevant general meeting of shareholders.

2、 Method of election of directors

According to the articles of association of the company, the cumulative voting system is adopted in the general election of the board of directors, that is, when the general meeting of shareholders elects directors, each share has the same voting right as the number of directors to be elected, and the voting rights owned by shareholders can be centralized or separately used.

3、 Recommendation of director candidates

（1） Recommendation of candidates for non independent directors

The board of directors of the company and the shareholders registered in Shanghai Branch of China securities registration and Clearing Co., Ltd., holding more than 3% of the company's issued shares independently or jointly since the date of the announcement, shall have the right to nominate and recommend non independent director candidates for the seventh board of directors to the sixth board of directors in writing; the number of persons recommended by a single recommender shall not exceed the number of non independent directors to be elected this time Number of directors.

（2） Recommendation of candidates for independent directors

The board of directors and the board of supervisors of the company shall be registered with China securities registration and Clearing Co., Ltd. from the date of promulgation of this announcement

The registered shareholders of Haifa branch holding more than 1% of the company's issued shares individually or jointly may nominate and recommend candidates for independent directors of the seventh board of directors to the sixth board of directors in writing; the number of Independent Directors recommended by a single recommender shall not exceed the number of independent directors to be elected this time.

4、 Procedures for the current general election

（1） The recommender shall submit the list of recommended candidates for directors and relevant materials to the Secretary of the board of directors of the company in writing within 5 days from the date of the announcement;

（2） After the expiration of the above recommendation time, the Secretary of the board of directors of the company will submit the relevant list and information to the nomination committee of the board of directors for qualification examination of the recommended directors, and submit the qualified candidates to the board of directors for deliberation.

（3） The board of directors of the company shall hold a meeting of directors to determine the list of candidates for directors of the seventh board of directors according to the candidates submitted by the nomination committee of the board of directors, and submit the list to the general meeting of shareholders for deliberation in the form of proposal.

（4） Prior to the general meeting of shareholders, the candidates for directors shall make a written commitment to accept the nomination, promise that the information provided is true and complete, and guarantee to perform the duties of directors after being elected. The candidates for independent directors shall also make relevant statements according to law.

（5） When issuing the notice of holding the general meeting of shareholders on the election of directors of the seventh board of directors, the company shall submit the relevant materials of the candidates of independent directors (including but not limited to the statement of the nominators, the statement of candidates, the resume of independent directors, and the supplementary statement of the candidates on independence) to Shanghai stock exchange for examination and approval. Within five trading days after receiving the materials submitted by the company, the SSE shall review the qualifications of candidates for independent directors in accordance with relevant regulations. If the Shanghai Stock Exchange does not raise any objection to the qualifications of the candidates for independent directors within five trading days from the date of receiving the materials submitted by the company, the company may conduct the decision-making procedure to elect independent directors. When a listed company convenes a general meeting of shareholders to elect independent directors, the board of directors of the company shall explain whether the candidates of independent directors are challenged by the Shanghai Stock Exchange.

5、 Qualifications of directors

（1） Qualifications of non independent directors

According to the provisions of the company law and the articles of association, a director of a company is a natural person and cannot be a director of the company under any of the following circumstances:

1. Having no or limited capacity for civil conduct;

2. He was sentenced to criminal punishment for corruption, bribery, embezzlement of property, misappropriation of property or disruption of the order of the socialist market economy, and the period of execution was less than 5 years, or he was deprived of political rights due to a crime, and the period of execution was less than 5 years;

3. Being a director, factory director or general manager of a company or enterprise which has been bankrupt and liquidated and is personally responsible for the bankruptcy of the company or enterprise, less than 3 years have passed since the completion of the bankruptcy liquidation of the company or enterprise;

4. Acting as the legal representative of a company or enterprise whose business license has been revoked or ordered to close down due to violation of the law, and is personally responsible for it, less than 3 years have passed since the date of revocation of the business license of the company or enterprise;

5. A person's debt with a large amount is not paid off when it is due;

6. Those who are forbidden to enter the securities market by the CSRC, and the time limit is not expired;

7. Those who are determined by Shanghai Stock Exchange to be unsuitable to serve as directors of listed companies;

8. In the past three years, he has been subject to administrative punishment by the CSRC;

9. In the past three years, he has been publicly denounced or criticized by the stock exchange for more than three times; 10. He is unable to ensure that he can devote enough time and energy to the company's affairs during his term of office, and earnestly perform the duties of directors, supervisors and senior managers;

11. Other contents stipulated by laws, administrative regulations or department rules.

（2） Qualifications of independent directors

1. Qualifications of independent directors:

In addition to the above qualifications, candidates for independent directors of the company must meet the following conditions:

(1) Basic knowledge of listed company operation, familiar with relevant laws, administrative regulations, departmental rules and other normative documents;

(2) At least five years' working experience in law, economics, finance, management or other necessary work experience to perform the duties of an independent director;

(3) Have obtained the qualification certificate of independent director. If the independent director qualification certificate is not obtained at the time of nomination, it shall make a written commitment to participate in the latest independent director qualification training and obtain the independent director qualification certificate.

2. The qualifications of candidates for independent directors shall meet the requirements of the following laws, administrative regulations and departmental rules:

(1) The company law of the people's Republic of China on the qualification of directors;

(2) The provisions of the law of the people's Republic of China on civil servants holding concurrent posts;

(3) The Central Commission for Discipline Inspection and the Central Organization Department of the people's Republic of China on standardizing the appointment of central management cadres as independent directors and independent supervisors of listed companies and fund management companies after they resign from public office or retire (leave) from their posts;

(4) The Central Commission for Discipline Inspection, the Ministry of education and the Ministry of supervision on strengthening the construction of anti-corruption in Colleges and universities, which stipulates that members of the leading group of colleges and universities should hold concurrent posts;

(5) The Interim Measures for the management of independent directors of insurance companies issued by CIRC;

(6) Other circumstances stipulated by laws, administrative regulations and departmental rules.

3. Candidates for independent directors shall be independent and shall not fall into the following situations:

(l) Personnel who work in the company or affiliated enterprises of the company and their immediate relatives and main social relations (direct relatives refer to spouses, parents, children, etc.; main social relations refer to brothers and sisters, parents in law, daughter-in-law, spouses of brothers and sisters, brothers and sisters of spouses, etc.);

(2) Directly or indirectly holding more than 1% of the company's issued shares or natural person shareholders and their immediate relatives among the top ten shareholders of the company;

(3) Personnel who hold posts in the shareholder units directly or indirectly holding more than 5% of the issued shares of the listed company or the top five shareholder units of the company and their immediate relatives;

(4) Personnel holding posts in the company's actual controller and its affiliated enterprises;

(5) Providing financial, legal and consulting services for the company and its controlling shareholders or their respective subsidiaries

Personnel, including all members of the project team of the intermediary agency providing services, review personnel at all levels, personnel who sign the report, partners and main responsible persons;

(6) To act as a director, supervisor or senior manager of a unit that has significant business contacts with the company and its controlling shareholders or their respective affiliated enterprises, or as a director, supervisor or senior manager in the controlling shareholder unit of the business entity;

(7) Personnel who have been in the situations listed in the first six items in the past year;

(8) Other situations where the Shanghai Stock Exchange does not recognize independence.

4. Candidates for independent directors shall have no bad records as follows:

(1) In recent three years, he was punished by the CSRC;

(2) During the period when it is publicly recognized by the stock exchange as unfit to serve as a director of a listed company;

(3) In the past three years, he has been publicly denounced or criticized twice or more by the stock exchange;

(4) During the period when he was an independent director, he did not attend the meetings of the board of directors for two consecutive times, or did not attend the meetings in person, accounting for more than one third of the number of meetings of the board of directors in that year;

(5) During his tenure as an independent director, his independent opinions are obviously inconsistent with the facts.

5. In principle, the independent directors of the company shall serve as independent directors of five listed companies at most, and ensure that they have enough time and energy to effectively perform their duties;

6. He has not served as an independent director of the company for more than six years.

6、 Description of relevant documents to be provided by the nominator

（1） The nominator must provide the following documents to the board of directors of the company when nominating candidates for directors:

1. The original of the recommendation letter of director candidates (see Annex 1 for the format);

2. The original commitment and statement of the candidates for directors (refer to Annex 2 for the format);

3. A copy of the ID card of the candidate for director (the original is for future reference);

4. Copies of the educational background and degree certificate of the candidate for director (original for future reference);

5. For nomination of candidates for independent directors, in addition to the above materials, it is also required to provide:

The original statement of the independent director's nominator (see Annex 3 for the format), the original statement for the candidate of the independent director (see Annex 4 for the format), the resume of the independent director (see Annex 5 for the format), and the copy of the qualification certificate of the independent director (if any);

6. Other documents that can prove that the conditions specified in this announcement are met.

（2） If the nominator is a shareholder of the company, the nominator shall also provide the following documents:

1. If it is an individual shareholder, it is required to provide a copy of the identity certificate (the original for reference);

2. If it is a corporate shareholder, a copy of business license (with official seal) shall be provided;

3. Copy of stock account card (original for future reference);

4. Other supporting documents for holding shares of the company.

（3） The method of nominating director candidates by the nominator is limited to two ways: personal service or mail;

1. If it is delivered in person, the relevant documents must be delivered to the Securities Investment Department of the company before 17:00 on April 12, 2021;

2. In case of mailing, the original of relevant documents must be sent to the securities and Investment Department of the company before 17:00 on April 12, 2021 (subject to the time of receiving the postmark);

3. After 17:00 on April 12, 2021, the company will no longer accept the recommendation and nomination of director candidates from all parties.

7、 Contact information

1. Contact person: Ding zetao

2. Contact Department: Secretariat of the board of directors

3. Tel: 0543-3288398

4. Fax: 0543-3288555

5. Address: NO.819, Huanghe 2nd Road, Binzhou City

6. Postal Code: 256617

It is hereby announced.

Board of directors of Huafang Co., Ltd

April 7, 2021

Recommendation of candidates for the 7th board of directors of Huafang Co., Ltd

As the registered shareholder of the company as of April 2021, I (unit) hereby propose to recommend candidates for the seventh board of directors to the company. The details are as follows:

Commitment and statement of candidates for directors of the 7th board of directors of Huafang Co., Ltd

As a candidate for director of the 7th board of directors of Huafang Co., Ltd., I hereby publicly declare that I accept the nomination of director candidates and promise that the information provided by me is true, accurate and complete. Up to now, I do not have any of the following circumstances that I am not allowed to be a director of the company according to the company law:

（1） Having no or limited capacity for civil conduct;

（2） Having been sentenced to criminal punishment for embezzlement, bribery, embezzlement, misappropriation of property or disruption of the order of the socialist market economy, and less than five years have elapsed since the expiration of the execution period, or have been deprived of political rights due to a crime, and the period of execution has not exceeded five years;

（3） Being a director, factory director or manager of a company or enterprise which has been bankrupt and liquidated and is personally responsible for the bankruptcy of the company or enterprise, less than three years have passed since the completion of the bankruptcy liquidation of the company or enterprise;

（4） Acting as the legal representative of a company or enterprise whose business license has been revoked or ordered to close down due to violation of the law, and being personally responsible for it, less than three years have elapsed since the date of the revocation of the business license of the company or enterprise;

（5） A person's debt with a large amount is not paid off when it is due;

（6） Those who are forbidden to enter the securities market by the CSRC, and the time limit is not expired;

（7） Other contents stipulated by laws, administrative regulations or department rules.

During the term of office, I will not take advantage of my power to accept bribes or other illegal income, will not occupy the company's property, abide by the laws, administrative regulations and the articles of association, and have the duty of loyalty and diligence to the company.

It is hereby declared. Declarant:

specific date

Statement of independent director Nominator

The nominator is now nominated as the candidate for independent director of the 7th board of directors of Huafang Co., Ltd., and has fully understood the professional expertise, educational background, work experience and concurrent positions of the nominees. The nominees have agreed in writing to be the candidate for independent director of the 7th board of directors of Huafang Co., Ltd. (see the declaration of candidates for independent directors).

The nominator believes that the nominees have the qualification of independent director, and there is no relationship between the nominees and Huafang Co., Ltd., which affects their independence. The specific statement is as follows:

1、 The nominees have the basic knowledge of the operation of listed companies, are familiar with relevant laws, administrative regulations, rules and other normative documents, have more than five years of working experience in law, economy, finance, management or other necessary for performing the duties of independent directors, and have obtained the qualification of independent directors in accordance with the guidelines for training senior managers of listed companies and relevant provisions Certificate. (for those who have not obtained the qualification certificate, the following statement shall be made:

The nominees shall have the basic knowledge of the operation of listed companies, be familiar with relevant laws, administrative regulations, rules and other normative documents, and have at least five years of working experience in law, economy, finance, management or other work necessary to perform the duties of an independent director. The nominees have not obtained the qualification certificate of independent directors in accordance with the guidelines for the training of senior managers of listed companies and relevant provisions. The nominees have promised to participate in the latest independent director qualification training held by Shanghai Stock Exchange and obtain the independent director qualification certificate after the nomination.)

2、 The qualifications of the nominees shall meet the requirements of the following laws, administrative regulations and departmental rules:

（1） The company law of the people's Republic of China on the qualification of directors;

（2） The provisions of the Civil Servant Law on the concurrent posts of civil servants;

（3） The Central Commission for Discipline Inspection and the Central Organization Department of the people's Republic of China on standardizing the appointment of central management cadres as independent directors and independent supervisors of listed companies and fund management companies after they resign from public office or retire (leave) from their posts;

（4） The Central Commission for Discipline Inspection, the Ministry of education and the Ministry of supervision on strengthening the construction of anti-corruption in Colleges and universities, which stipulates that members of the leading group of colleges and universities should hold concurrent posts;

（5） The Interim Measures for the management of independent directors of insurance companies issued by CIRC;

（6） Other circumstances stipulated by laws, administrative regulations and departmental rules.

3、 The nominees are independent and do not fall into the following circumstances:

（1） The personnel who work in the listed company or its affiliated enterprises and their immediate relatives and main social relations (direct relatives refer to spouses, parents, children, etc.; main social relations refer to brothers and sisters, parents in law, daughter-in-law, spouses of brothers and sisters, brothers and sisters of spouses, etc.);

（2） Directly or indirectly holding more than 1% of the issued shares of the listed company or natural person shareholders and their immediate relatives among the top ten shareholders of the listed company;

（3） Personnel who hold posts in the shareholder units directly or indirectly holding more than 5% of the issued shares of the listed company or the top five shareholder units of the listed company and their immediate relatives;

（4） Personnel who hold posts in the actual controller of the listed company and its affiliated enterprises;

（5） Personnel who provide financial, legal and consulting services to the listed company and its controlling shareholders or their respective affiliated enterprises, including all members of the project team of the intermediary institution providing the services, the review personnel at all levels, the personnel who sign the report, the partners and the main responsible persons;

（6） To act as a director, supervisor or senior manager of a unit that has significant business contacts with the listed company and its controlling shareholders or their respective affiliated enterprises, or as a director, supervisor or senior manager in the controlling shareholder unit of the business entity;

（7） Personnel who have been in the situations listed in the first six items in the past year;

（8） Other situations where the Shanghai Stock Exchange does not recognize independence.

4、 Candidates for independent directors have no bad records as follows:

（1） In recent three years, he was punished by the CSRC;

（2） During the period when it is publicly recognized by the stock exchange as unfit to serve as a director of a listed company;

（3） In the past three years, he has been publicly denounced or criticized twice or more by the stock exchange;

（4） During the period when he was an independent director, he did not attend the meetings of the board of directors for two consecutive times, or did not attend the meetings in person, accounting for more than one third of the number of meetings of the board of directors in that year;

（5） During his tenure as an independent director, his independent opinions are obviously inconsistent with the facts.

5、 Including Huafang Co., Ltd., the number of domestic listed companies in which the nominees concurrently serve as independent directors does not exceed five, and the nominees have served in Huafang Co., Ltd. for no more than six years.

6、 The nominees have rich professional knowledge and experience in accounting, and at least have one of four qualifications, namely, certified public accountant, senior accountant, associate professor of accounting or doctor's degree in accounting. (this article is applicable to the case of being nominated as an independent director candidate as an accounting professional. Please select the qualification that meets the requirements.).

The nominees have verified the qualifications of candidates for independent directors in accordance with the guidelines for filing and training of independent directors of Listed Companies in Shanghai Stock Exchange and confirmed that they meet the requirements.

We guarantee that the above statement is true, complete and accurate without any false statement or misleading elements. We fully understand the possible consequences of making a false statement.

It is hereby declared. Nominator (seal)

specific date

Statement of candidates for independent directors

I have fully understood and agreed to be nominated by the nominator as an independent director candidate of the 7th board of directors of Huafang Co., Ltd. I publicly declare that I am qualified as an independent director and guarantee that there is no relationship that will affect my independence as an independent director of Huafang Co., Ltd

1、 I have the basic knowledge of the operation of listed companies, familiar with the relevant laws, administrative regulations, departmental rules and other normative documents, have more than five years of legal, economic, financial, management or other necessary work experience to perform the duties of an independent director, and have obtained the qualification of an independent director in accordance with the guidelines for the training of senior managers of listed companies and relevant provisions Certificate. (for those who have not obtained the qualification certificate, the following statement shall be made:

I have the basic knowledge of the operation of listed companies, familiar with the relevant laws, administrative regulations, rules and other normative documents, and have more than five years of legal, economic, financial, management or other necessary work experience to perform the duties of an independent director. I have not obtained the qualification certificate of independent director in accordance with the guidelines for training senior managers of listed companies and relevant provisions. I promise to participate in the latest independent director qualification training held by Shanghai Stock Exchange and obtain the independent director qualification certificate after this nomination.)

2、 My qualifications meet the requirements of the following laws, administrative regulations and departmental rules:

（1） The company law of the people's Republic of China on the qualification of directors;

（2） The provisions of the Civil Servant Law on the concurrent posts of civil servants;

（3） The Central Commission for Discipline Inspection and the Central Organization Department of the people's Republic of China on standardizing the appointment of central management cadres as independent directors and independent supervisors of listed companies and fund management companies after they resign from public office or retire (leave) from their posts;

（4） The Central Commission for Discipline Inspection, the Ministry of education and the Ministry of supervision on strengthening the construction of anti-corruption in Colleges and universities, which stipulates that members of the leading group of colleges and universities should hold concurrent posts;

（5） The Interim Measures for the management of independent directors of insurance companies issued by CIRC;

（6） Other circumstances stipulated by laws, administrative regulations and departmental rules.

3、 I am independent and not under the following circumstances:

（1） The personnel who work in the listed company or its affiliated enterprises and their immediate relatives and main social relations (direct relatives refer to spouses, parents, children, etc.; main social relations refer to brothers and sisters, parents in law, daughter-in-law, spouses of brothers and sisters, brothers and sisters of spouses, etc.);

（2） Directly or indirectly holding more than 1% of the issued shares of the listed company or natural person shareholders and their immediate relatives among the top ten shareholders of the listed company;

（3） In the shareholder units directly or indirectly holding more than 5% of the issued shares of the listed company or in the listed company

The personnel holding positions in the top five shareholder units and their immediate relatives;

（4） Personnel who hold posts in the actual controller of the listed company and its affiliated enterprises;

（5） Personnel who provide financial, legal and consulting services to the listed company and its controlling shareholders or their respective affiliated enterprises, including all members of the project team of the intermediary institution providing the services, the review personnel at all levels, the personnel who sign the report, the partners and the main responsible persons;

（6） To act as a director, supervisor or senior manager of a unit that has significant business contacts with the listed company and its controlling shareholders or their respective affiliated enterprises, or as a director, supervisor or senior manager in the controlling shareholder unit of the business entity;

（7） Personnel who have been in the situations listed in the first six items in the past year;

（8） Other situations where the Shanghai Stock Exchange does not recognize independence.

4、 I have no bad record as follows:

（1） In recent three years, he was punished by the CSRC;

（2） During the period when it is publicly recognized by the stock exchange as unfit to serve as a director of a listed company;

（3） In the past three years, he has been publicly denounced or criticized twice or more by the stock exchange;

（4） During the period when he was an independent director, he did not attend the meetings of the board of directors for two consecutive times, or did not attend the meetings in person, accounting for more than one third of the number of meetings of the board of directors in that year;

（5） During his tenure as an independent director, his independent opinions are obviously inconsistent with the facts.

5、 Including Huafang Co., Ltd., there are no more than five domestic listed companies in which I concurrently serve as independent directors; I have served in Huafang Co., Ltd. for no more than six consecutive years.

6、 I have rich accounting professional knowledge and experience, and at least have one of the four qualifications: certified public accountant, senior accountant, associate professor of accounting or doctor's degree in accounting. (this article is applicable to the case of being nominated as an independent director candidate as an accounting professional. Please select the qualification that meets the requirements.).

I have verified the qualifications of my candidates for independent directors in accordance with the guidelines for filing and training of independent directors of Listed Companies in Shanghai Stock Exchange and confirmed that they meet the requirements.

I am fully aware of the responsibilities of the independent director and guarantee that the above statement is true, complete and accurate without any false statement or misleading element. I fully understand the possible consequences of making a false statement. Shanghai Stock Exchange may confirm my qualification and independence in accordance with this statement.

I promise: during my tenure as an independent director of Huafang Group Co., Ltd., I will abide by laws and regulations, rules, regulations, notices issued by China Securities Regulatory Commission and business rules of Shanghai Stock Exchange, accept the supervision of Shanghai Stock Exchange, ensure that there is enough time and energy to perform duties and make independent judgment, which is not controlled by major shareholders and actual situation of the company The influence of the employer or other units or individuals who have an interest relationship with the company.

I promise: if I do not meet the qualification of independent director after taking office, I will appear

Resigns as an independent director within 30 days from the date of such circumstances. It is hereby declared.

Declarant:

specific date

Annex 5:

Resume of independent directors of listed companies

During work

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Stock Code: 600448 stock abbreviation: Huafang stock Announcement No.: 2021-005

Notice on general election of board of supervisors of Huafang Co., Ltd

The board of supervisors and all supervisors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and shall bear individual and joint liabilities for the authenticity, accuracy and completeness of the contents.

The term of office of the sixth board of supervisors of Huafang Co., Ltd. (hereinafter referred to as "the company" or "the company") will expire on May 8, 2021. In order to successfully complete the general election of the board of supervisors (hereinafter referred to as "the current general election"), the board of supervisors of the company is now in accordance with the company law and other relevant laws, administrative regulations, departmental rules, normative documents and the articles of association of the company According to relevant regulations, the relevant matters are announced as follows:

1、 Composition of the seventh board of supervisors

The seventh board of supervisors of the company is composed of three supervisors. Among them, there are 1 shareholder representative supervisor and 2 employee representative supervisor. The term of office of the supervisor shall be calculated from the date of approval of the relevant general meeting of shareholders, and the term of office shall be three years.

2、 Election method of supervisors

According to the articles of association of the company, the cumulative voting system is adopted in the general election of the board of supervisors. That is, when the general meeting of shareholders elects supervisors, each share has the same voting right as the number of supervisors to be elected, and the voting rights owned by shareholders can be centralized or separately used.

3、 Recommendation of supervisor candidates

（1） Recommendation of candidates for Shareholder Representative Supervisor

As of the date of promulgation of this announcement, the shareholders registered in Shanghai Branch of China securities registration and Clearing Co., Ltd., holding more than 3% of the company's issued shares individually or jointly, shall have the right to nominate and recommend candidates for shareholder representative supervisors of the seventh board of supervisors to the sixth board of supervisors in writing; the number of candidates recommended by a single recommender shall not exceed the number of candidates for shareholder representative supervisors to be elected this time Number of people.

（2） Recommendation of candidates for employee representative supervisor

The employee representative supervisor shall be elected by the employee congress of the company.

4、 Procedures for the current general election

（1） The recommender shall, within 5 days from the date of promulgation of this announcement, submit in writing to the Secretary of the board of directors of the company the list of recommended candidates for supervisors and relevant materials.

（2） After the expiration of the above recommendation time, the Secretary of the board of directors of the company shall submit the relevant list and information to the board of supervisors. The board of supervisors shall hold a meeting to examine the qualifications of the recommended candidates for supervisors, and determine the list of candidates for supervisors held by shareholders' representatives of the seventh board of supervisors, and submit the list to the general meeting of shareholders of the company for deliberation in the form of proposal.

（3） The candidate of supervisor shall make a written commitment before the general meeting of shareholders, agree to accept the nomination, promise that the information provided is true and complete, and guarantee to perform the duties of the supervisor after being elected.

5、 Qualifications of supervisors

According to the provisions of the company law and the articles of association, the directors, general manager and other senior managers of the company shall not concurrently serve as supervisors; during the term of office of directors, general manager and other senior managers, their spouses and direct relatives shall not serve as supervisors of the company.

All candidates for supervisors of the company shall be natural persons, and shall have the working experience and experience suitable for the position of supervisor, and ensure that they have sufficient time and energy to perform the duties of supervisors. Those who have the facts mentioned in the following clauses shall not serve as supervisors of the company:

（1） Having no or limited capacity for civil conduct;

（2） He was sentenced to criminal punishment for corruption, bribery, embezzlement of property, misappropriation of property or disruption of the order of the socialist market economy, and the period of execution was less than 5 years, or he was deprived of political rights due to a crime, and the period of execution was less than 5 years;

（3） Being a director, factory director or manager of a company or enterprise which has been bankrupt and liquidated and is personally responsible for the bankruptcy of the company or enterprise, less than 3 years have passed since the completion of the bankruptcy liquidation of the company or enterprise;

（4） Acting as the legal representative of a company or enterprise whose business license has been revoked or ordered to close down due to violation of the law, and is personally responsible for it, less than 3 years have passed since the date of revocation of the business license of the company or enterprise;

（5） A person's debt with a large amount is not paid off when it is due;

（6） Those who are forbidden to enter the securities market by the CSRC, and the time limit is not expired;

（7） Those who are determined by the Shanghai Stock Exchange to be unsuitable to serve as supervisors of listed companies;

（8） Other contents stipulated by laws, administrative regulations or department rules.

6、 Description of relevant documents to be provided by the recommender

（1） When nominating candidates for supervisors, the nominator must provide the following documents to the board of supervisors of the company:

1. Nomination Letter of supervisor candidates (see Annex 1 for the format);

2. Commitment and statement of candidates of the third board of supervisors (see Annex 2 for the format)

3. A copy of the identity certificate of the candidate of the supervisor (the original for future reference);

4. Copies of the educational background and degree certificate of the candidate of the supervisor (the original for future reference);

5. Other documents that can prove that the conditions specified in this announcement are met.

（2） If the nominator is a shareholder of the company, the nominator shall also provide the following documents:

1. If it is an individual shareholder, it is required to provide a copy of the identity certificate (the original for reference);

2. If it is a corporate shareholder, a copy of business license (with official seal) shall be provided;

3. Copy of stock account card (original for future reference);

4. Other supporting documents for holding shares of the company.

（3） The method of nominating director candidates by the nominator is limited to two ways: personal service or mail;

1. If it is delivered in person, the relevant documents must be delivered to the Securities Investment Department of the company before 17:00 on April 12, 2021;

2. In case of mailing, the original of relevant documents must be sent to the securities and Investment Department of the company before 17:00 on April 12, 2021 (subject to the time of receiving the postmark);

3. After 17:00 on April 12, 2021, the company will no longer accept the recommendation and nomination of director candidates from all parties.

7、 Contact information

1. Contact person: Ding zetao

2. Contact Department: Secretariat of the board of directors

3. Tel: 0543-3288398

4. Fax: 0543-3288555

5. Address: NO.819, Huanghe 2nd Road, Binzhou City

6. Postal Code: 256617

It is hereby announced.

Board of supervisors of Huafang Co., Ltd

April 7, 2021

Recommendation of candidates for the 7th board of supervisors of Huafang Co., Ltd

As the registered shareholder of the company as of April 2021, I (the unit) hereby propose to recommend the candidates of shareholder representative supervisor of the seventh board of supervisors to the company. The details are as follows:

Promise and statement of candidates for supervisors of the 7th board of supervisors of Huafang Co., Ltd

As the candidate of the 7th board of supervisors of Huafang Co., Ltd., I hereby declare publicly that I accept the nomination of the supervisor candidate and promise that the information provided by me is true, accurate and complete. Up to now, I do not have any of the following circumstances that I am not allowed to be a supervisor of the company according to the company law:

（1） Having no or limited capacity for civil conduct;

（2） Having been sentenced to criminal punishment for embezzlement, bribery, embezzlement, misappropriation of property or disruption of the order of the socialist market economy, and less than five years have elapsed since the expiration of the execution period, or have been deprived of political rights due to a crime, and the period of execution has not exceeded five years;

（3） Being a director, factory director or manager of a company or enterprise which has been bankrupt and liquidated and is personally responsible for the bankruptcy of the company or enterprise, less than three years have passed since the completion of the bankruptcy liquidation of the company or enterprise;

（4） Acting as the legal representative of a company or enterprise whose business license has been revoked or ordered to close down due to violation of the law, and being personally responsible for it, less than three years have elapsed since the date of the revocation of the business license of the company or enterprise;

（5） A person's debt with a large amount is not paid off when it is due;

（6） Those who are forbidden to enter the securities market by the CSRC, and the time limit is not expired;

（7） Other contents stipulated by laws, administrative regulations or department rules.

During the term of office, I will not take advantage of my power to accept bribes or other illegal income, will not occupy the company's property, abide by the laws, administrative regulations and the articles of association, and have the duty of loyalty and diligence to the company.

It is hereby declared.

Declarant:

specific date