Securities code: 600237 Securities abbreviation: Tongfeng Electronic Number: Lin 2020-064

Anhui Tongfeng Electronics Co., LTD

On the public listing transfer of wholly-owned subsidiary equity progress announcement

The board of directors and all the directors of the Company warrant that there is no false record, misleading statement or material omission in the content of this announcement, and bear individual and joint liability for the authenticity, accuracy and completeness of the content.

I. Overview of the transaction

On December 11, 2020, the second meeting of the ninth Board of Directors of Anhui Tongfeng Electronics Co., LTD. (hereinafter referred to as the "Company") deliberated and passed the "Motion on Public Listing Transfer of 100% equity of its wholly-owned subsidiary Anhui Hehuijinyuan Technology Co., LTD.", and the company decided to publicly list, Transfer 100% equity of its wholly-owned subsidiary Anhui Hehuijinyuan Technology Co., LTD. (hereinafter referred to as "Hehuijinyuan"). At the same time, the Board of Directors authorizes the management to be fully responsible for handling and deciding matters related to the equity listing transfer of Hehuijinyuan based on the results of equity listing transfer and market conditions (see the relevant announcement disclosed by the Company on the website of Shanghai Stock Exchange http://www.sse.com.cn and designated information disclosure media on December 12, 2020 for details).

Ii. Basic information of the counterparty

On December 25, 2020, the Company entrusted Tongling Jiahe Auction Co., Ltd. to conduct a public auction of 100% of the shares of Hehuijinyuan on the auction platform. The listed price of the auction was RMB 33,074,800 of the assessed value of 100% of the shares of Hehuijinyuan. According to the auction results, Anhui Wanlang Magnetic-Plastic Co., LTD. (hereinafter referred to as "Wanlang Magnetic-Plastic") won the 100% equity of Hehuijinyuan at the transaction price of RMB 3,074,800. The basic situation of Wanlang magnetic plastic is as follows:

1. Company name: Anhui Wanlang Magnetic Plastic Co., LTD

2. Registered capital: 62.25 million Yuan

3. Type of enterprise: Limited company (unlisted, invested or held by natural person)

4. Establishment date: October 27, 1999

5. Business scope: R&D, processing, manufacturing and sales of household appliance parts; Research and development, processing, manufacturing and sales of plastic products; Leasing of machinery and equipment; Research and development, processing, manufacturing, sales and import and export trade of moulds, equipment and raw materials (except for the commodities limited by the state).

6. Address: North Tangkou Road, Hefei Economic and Technological Development Zone, Anhui Province

7, correlation: the company has no correlation with Wanlang Magnetic Plastic.

Iii. Progress of the transaction

As of December 30, 2020, the Company has received all the equity transfer payment of RMB 33,074,800 paid by Wanlang Magneplastic. The company is cooperating with Wanlang Magneplastic to handle relevant formalities of industrial and commercial registration change. After the completion of this industrial and commercial change, the company will no longer hold the equity of Hehuijinyuan.

Iv. Transaction purpose and impact on listed companies

The sale of 100% of the shares of Hehuijinyuan is conducive to revitalizing the stock of assets and improving the efficiency of asset use. Upon completion of this transaction, Hehuijinyuan will no longer be included in the consolidated financial statements of the Company.

According to the company's preliminary calculation, this transaction is expected to increase the company's annual net profit of about 8,883,700 yuan in 2020, the specific details are subject to the final audit data of the accounting firm.

This is to announce.