Zhejiang Furun (600070. SH) Performance Compensation Fund Jiang Yougui And Fu Haipeng Received Warning Letter From Zhejiang Securities Regulatory Bureau

On April 19, Zhejiang Securities Regulatory Bureau issued a warning letter to Jiang Yougui and fuhaipeng. According to the warning letter, in December 2016, Zhejiang Furun (600070. SH) acquired 100% equity of Hangzhou taiyizhishang Technology Co., Ltd. (hereinafter referred to as "taiyizhishang") by issuing shares and paying cash. In November 2018, Jiang Yougui and Fu Haipeng provided a letter of commitment to Zhejiang Furun, voluntarily and irrevocably promised that the net profit after deducting non recurring profit and loss (hereinafter referred to as "net profit after deducting non recurring profit and loss") in 2019 and 2020 will be no less than 159 million yuan and 207 million yuan respectively. If the actual net profit is lower than the committed net profit, it will be supplemented by cash or stock. According to the company's annual report in 2019, the net profit of taiyizhishang after deducting non-profit in 2019 is 75.3836 million yuan, and the difference between it and the committed net profit is 83.6164 million yuan. In November 2020, Jiang Yougui, Fu Haipeng and Zhejiang Furun signed a supplementary agreement on the voluntary additional performance commitment, promising to pay Zhejiang Furun 83.6164 million yuan of performance compensation in cash before December 31, 2021. Jiang Yougui and Fu Haipeng failed to pay the above performance compensation in full and on time as agreed.

In addition, the net profit of Taiyi index after deducting non-profit in 2020 is 25.1206 million yuan, and it has not fulfilled the promised performance. Jiang Yougui and Fu Haipeng, as the counterparties of major asset restructuring, have violated their commitments.