Securities code: 600237 Securities abbreviation: Tongfeng Electronic Number: Lin 2020-059

Anhui Tongfeng Electronics Co., LTD
Announcement on cancellation of some wholly owned subsidiaries

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.

In order to optimize resource allocation, reduce management levels and improve overall operation efficiency, Anhui Tongfeng Electronics Co., LTD. (hereinafter referred to as the "Company") held the second meeting of the ninth Board of Directors of the company on December 11, 2020, deliberated and passed the Motion on the cancellation of part of wholly-owned subsidiaries, and agreed to cancel part of wholly-owned subsidiaries. At the same time, the Board of Directors authorizes the management of the company to handle the relevant procedures of cancelling wholly-owned subsidiaries and establishing branch companies in accordance with relevant regulations. Relevant information is now announced as follows:

I. Cancel the wholly-owned subsidiary Tongling Tongfeng Capacitor Co., LTD., and set up a capacitor branch.

1. Name: Tongling Tongfeng Capacitor Co., LTD.

2. Registered capital of the Company: RMB 108 million;

3. Residence: Tongling Economic and Technological Development Zone, Anhui Province;

4. Enterprise type: limited liability company;

5. Date of establishment: April 6, 2006

6. Business scope: Research, development, production, sales, processing services and transfer of scientific and technological achievements of AC capacitors, DC containers, power capacitors and special capacitors.

7. Financial position (unaudited) : As of September 30, 2020, the total assets of the Company were 26,4713,300 yuan; Net assets 136,71,400 yuan; Operating revenue of 20,3.7571 million yuan; Operating profit of 19,587,000 yuan; Net profit of 14.3036 million yuan.

After the wholly-owned subsidiary Tongling City Tongfeng Capacitor Co., Ltd. is cancelled, the company will set up a capacitor branch to operate and manage the original capacitor business.

Ii. Cancellation of wholly-owned subsidiary Tongling Tongfeng Photoelectric Technology Co., LTD

1. Company Name: Tongling Tongfeng Photoelectric Technology Co., LTD

2. Registered capital of the Company: 70.86 million Yuan;

3. Address: No. 339, West Section of Cuihu Third Road, Tongling Economic and Technological Development Zone, Anhui Province

4. Enterprise type: limited liability company

5. Establishment date: May 10, 2019

6. Business Scope: LED products and their accessory products, quartz crystal frequency devices, electronic devices development, production and sales, series of quartz crystal frequency wafers, optical wafers, sapphire wafers, quartz wafers processing, professional equipment, instrument mold, quartz crystal components, electronic components, electronic technology development, consulting, Sales of computer peripherals, hardware, electrical, chemical materials (except dangerous goods), research and development, production, sales of electronic connectors, cables, electroacoustic components, self-support and agent import and export of various commodities and technologies. (For projects subject to approval according to law, business activities can only be carried out after approval by relevant departments)

7. Financial position (unaudited) : As of September 30, 2020, the total assets of the company were RMB 55,642,800; Net assets - 13,395,500 yuan; Operating income of RMB 0.3,300; Operating profit - 294,300 yuan; Net profit - 449,200 yuan.

As the main business of the company is all managed by Sun Company Tongling Tongfeng Precision Technology Co., LTD., in order to reduce management levels and improve operational efficiency, it was decided to cancel the company.

Three, cancel the wholly-owned subsidiary Yongkang Copper Peak Capacitor Co., LTD

1. Company name: Yongkang Copper Peak Capacitor Co., LTD

2. Registered capital of the Company: 30 million Yuan;

3. Address: East side of No. 6 Changzhi Road (1st Floor), Yongkang Economic Development District, Quanhua City, Zhejiang Province

4. Enterprise type: limited liability company

5. Establishment date: December 5, 2017

6. Business scope: capacitor manufacturing, research and development, and sales (for projects subject to approval according to law, business activities can only be carried out after approval by relevant departments)

7. Financial position (unaudited) : As of September 30, 2020, the total assets, net assets and operating income of the company are zero.

The company has not carried out actual business since its incorporation. In order to integrate and optimize the existing resource allocation, it is decided to cancel the company, which will not affect the company's business development and profitability.

4. Cancel the wholly owned subsidiary Shanghai Yuxi Investment Co., LTD

1. Company name: Shanghai Yuxi Investment Co., LTD

2. Registered capital of the company: 20,000 yuan;

3. Address: Room 543, Building 2, No. 351 Guoshoujing Road, China (Shanghai) Pilot Free Trade Zone

4. Enterprise type: limited liability company

5. Date of establishment: September 8, 2016

6. Business scope: Industrial investment, investment management, asset management, enterprise management, investment consulting services.

7. Financial status (unaudited) : As of September 30, 2020, the total assets of the company were 170,000 yuan; Net assets 170,000 yuan; No business income; Operating profit and net profit were -766,400 yuan.

The company did not carry out actual business after its incorporation. In order to integrate and optimize the allocation of existing resources and reduce operating costs, it was decided to cancel the company. The cancellation of the company, will not have an impact on the company's business development and profitability.



The above-mentioned companies to be cancelled are all wholly-owned subsidiaries of the company. The purpose of cancelating the above wholly-owned subsidiaries is to integrate and optimize the existing resource allocation, reduce management levels, reduce operating costs, and improve operating efficiency. Except for changes in the scope of consolidated statements, it will not adversely affect the overall business development and profitability of the company. There is no harm to the interests of the company and shareholders, especially minority shareholders.

This is to announce.