Securities code: 600237 Securities abbreviation: Tongfeng Electronic Number: Lin 2020-062 

Anhui Tongfeng Electronics Co., LTD
Announcement on the progress of using its own idle funds to buy break-even financial products

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.

Anhui Tongfeng Electronics Co., LTD. (hereinafter referred to as the "Company") held the second meeting of the ninth Board of Directors and the second meeting of the ninth Board of Supervisors on December 11, 2020, at which the "Motion on Using its own idle Funds to Purchase capital protection financial products" was deliberated and passed, and agreed that the company, under the condition of not affecting normal operations, Use no more than 50 million RMB of its own idle funds to buy financial institutions' break-even financial products. At the same time, the board of directors authorizes the chairman to exercise the investment decision-making power and sign the relevant contract documents within the scope and validity period of the quota. The Company's Chief Financial Officer shall be responsible for the specific purchase matters (for details, please refer to the Company's announcement published on the Shanghai Stock Exchange website http://www.sse.com.cn and designated information disclosure media on December 12, 2020).

According to the above resolution, on December 17, 2020, the company used its own idle fund of RMB 50 million (RMB 50 million only) to purchase principal guarantee financial products of China Merchants Securities Co., LTD. The detailed information is hereby announced as follows:

First, the main situation of financial products

1. Issuer: China Merchants Securities Co., LTD

2. Product name: China Merchants Securities Income Certificate - "Rock" 878 principal guarantee income certificate

3. Product type: principal guarantee type

4. Source of funds: own idle funds

5. Expected annualized revenue: 3.80%

6. Investment amount: 50 million Yuan

7. Product life: 81 days

8. Description of relation: The Company has no relation with China Merchants Securities Co., LTD

Second, the impact on the company

Under the condition of ensuring normal operation and capital safety, the company can use part of its own idle funds to buy capital protection financial products with high security, good liquidity and low risk, which will not affect the normal operation of the company's business, and can improve the efficiency of capital use and obtain certain investment income.

Iii. Risk warning

Capital preservation financial products of financial institutions belong to the varieties of low-risk investment, but the financial market is affected by macro-economy, which does not exclude the impact of market fluctuations on this investment. The Company will purchase financial products in strict accordance with relevant laws, regulations, articles of association and other relevant rules and regulations, and intervene timely and appropriately according to changes in the economic situation and financial market.

Iv. Risk control measures taken by the Company

1. The Financial Management Center of the company is responsible for the management of matters related to the purchase of break-even financial products of financial institutions. The financial management center will establish the ledger management, the economic activities of the use of funds to establish a complete and sound accounting accounts, do a good job in the use of funds financial accounting work; Timely analyze and track the investment of financial products and the progress of the project. If adverse factors are found or judged, timely take corresponding measures to control investment risks;

2. The company's internal audit department is responsible for internal supervision and regular comprehensive inspection of the invested financial products;

3. The independent directors and the Board of supervisors shall have the right to supervise and inspect the use of funds to purchase break-even financial products, and may hire professional institutions to audit if necessary.

V. Purchase of financial products in the 12 months prior to the announcement

As of the disclosure date of this announcement, the Company has not used idle funds to purchase financial products in the past 12 months.

This is to announce.