Huafang (600448): Transfer Of State-Owned Equity

Announcement on transfer of state-owned shares by 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. On April 29, 2020, the company issued the indicative announcement on changes in shareholders' equity (Announcement No

No. 2020-022), 74833 shares held by Binzhou state owned capital investment and operation group Co., Ltd. (hereinafter referred to as "Binzhou state owned investment and operation group") Co., Ltd. (hereinafter referred to as "Binzhou Guotou"), After the transfer of shares (hereinafter referred to as "28.4%) of the total shares transferred to binjin limited company (hereinafter referred to as" the number of shares transferred to binjin Group Co., Ltd. ") is calculated according to the number of shares transferred to binjin Group Limited before the transfer. On June 16, 2020, the company issued the announcement on shareholders' signing of the agreement on free transfer of state owned shares (Announcement No.: 2020-028). Binzhou Caijin and Binzhou SDIC have signed the agreement on free transfer of state owned shares, which includes 89799941 shares of Huafang Co., Ltd. held by Binzhou state owned assets supervision and Administration Commission, 833284 shares and 1496657 shares obtained from the equity distribution of Huafang on June 11, 2020 after the approval of the state owned assets supervision and Administration Commission of Binzhou City)

14.26%, which was transferred to Binzhou without compensation.

The company received the notice of Binzhou finance and Finance on July 16, 2020. Binzhou finance and finance and Binzhou State Investment Corporation (Binzhou SDIC) have registered the transfer of 77617200 shares of non tradable shares in Shanghai Branch of China securities registration and Clearing Corporation on July 14, 2020, The sales restriction period of 741 shares will be up to November 29, 2020, and the transfer conditions will not be met for the time being, and the transfer will be carried out after the expiration of the restriction. Before the equity transfer, Binzhou financial held 27564529 shares of the company, accounting for 4.38% of the total share capital of the company; after the equity transfer, Binzhou financial held 105181 shares of the company, 729 shares, accounting for 16.70% of the total share capital of the company, becoming the largest shareholder of the company; after the equity transfer, Binzhou Guotou held 12182741 shares of the company, accounting for the total share capital of the company

93%, becoming a small shareholder of the company.

The change of state-owned equity will not lead to the change of the actual control right of the company, and the actual controller of the company is still Binzhou SASAC.

The company will continue to perform the obligation of information disclosure according to the progress of equity transfer.

It is hereby announced.

Board of directors of Huafang Co., Ltd

July 17, 2020