Zhejiang Furun (600070): Adjust The Share Distribution Proportion In 2020 Profit Distribution Plan

Announcement of Zhejiang Furun Digital Technology Co., Ltd. on adjusting the distribution proportion of each share in the profit distribution plan of 2020

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.

Important content tips:

Distribution ratio of each share: the cash dividend distributed per share is adjusted from RMB 0.05 (tax included) to RMB 0.049 (tax included).

Reasons for adjustment: the company has completed the registration procedures for the grant of restricted shares in Shanghai Branch of China securities registration and Clearing Co., Ltd. on June 18, 2021. As the source of the restricted shares granted this time is the shares of the company's special securities account for repurchase, the total amount of the company's shares before and after registration remains unchanged, but the share capital participating in the profit distribution in 2020 is increased from 506720732 shares to 521, 946118 shares. According to the company's profit distribution plan for 2020, the distribution proportion of each share shall be adjusted accordingly according to the total amount of cash dividends.

On April 25, 2021, Zhejiang Furun Digital Technology Co., Ltd. (hereinafter referred to as "the company") held the eighth session of the ninth board of directors, deliberated and passed the company's 2020 annual profit distribution plan; On May 17, 2021, the company held the 2020 annual general meeting of shareholders, deliberated and approved the company's 2020 annual profit distribution plan. The main contents of the profit distribution plan are as follows: the company plans to distribute cash dividends of RMB 0.50 (tax inclusive) to all shareholders for every 10 shares based on the total share capital on the registration date of equity distribution and the number of shares in the special repurchase account not involved in profit distribution, The total amount of dividend payment is expected to be 25336036.60 yuan. Capital reserve will not be converted into capital stock in this year. If the total share capital of the company changes before the equity registration date of the implementation of equity distribution, it is planned to maintain the total amount of distribution unchanged and adjust the distribution proportion of each share accordingly. For details, please refer to the announcement of the company's profit distribution plan in 2020 (Announcement No

　　2021-012)。

On June 22, 2021, the company disclosed the announcement on the award result of restricted stock incentive plan in 2021 (Announcement No.: 2021-035), and the company has registered with China securities registration and Clearing Co., Ltd. on June 18, 2021

Shanghai Branch of the responsible company has completed the registration procedures for the grant of restricted shares. As the source of the restricted shares granted this time is the shares of the company's special securities account for repurchase, the total amount of the company's share capital remains unchanged before and after registration, but the total number of shares participating in the profit distribution in 2020 will increase from 506720732 to 521946118.

According to the changes in the total number of shares participating in the profit distribution and the company's profit distribution plan for 2020, the distribution proportion of each share is adjusted accordingly according to the principle of keeping the total amount of cash dividends unchanged. The cash dividend distributed per share is determined to be adjusted from RMB 0.05 (tax inclusive) to RMB 0.049 (tax inclusive), and the calculation method is as follows:

1. Cash dividend per share after adjustment = total amount of original profit distribution ÷ The total share capital of the company registered on the equity registration date of 2020 is 25336036.60 ÷ 521946118 ≈ 0.049 yuan (including tax) (keep three decimal places);

2. Total amount of actual profit distribution = adjusted cash dividend per share × The total share capital of the company registered on the equity registration date of 2020 is 0.049 × 521946118 ≈ 25575359.78 yuan (two decimal places are reserved), which shall be subject to the implementation results of equity distribution. The company will specify the specific date of equity registration date in the implementation announcement of equity distribution.

To sum up, the company's profit distribution plan in 2020 is as follows: cash dividend of RMB 0.049 per share (tax included) and total amount of cash dividend distributed is RMB 25575359.78 (the difference of total distribution is caused by the rounding adjustment of the tail of cash dividend per share), and the specific implementation results of equity distribution shall prevail.

It is hereby announced.

Zhejiang Furun Digital Technology Co., Ltd

Board of directors 23 June 2021