Securities code: 600237 Securities for short: Tongfeng Electronic Announcement Number: Lin 2021-012

Announcement of Anhui Tongfeng Electronics Co., LTD. 's 2020 routine affiliated transaction execution and 2021 routine Affiliated transaction forecast

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.

Important content Tips:
● Whether to submit to the General Meeting of Shareholders for consideration: No
● The impact of daily connected transactions on the listed company: The pricing policies and pricing basis of the daily connected transactions comply with the principles of openness, fairness and justice, and will not affect the independence of the company.
I. Basic Information of daily connected transactions

(1) Review procedures for routine execution of affiliated transactions

1. Voting situation of the Board of Directors
On April 25, 2021, the fourth meeting of the ninth Board of Directors of Anhui Tongfeng Electronics Co., LTD. (hereinafter referred to as "the Company or the Company") deliberated and passed the "Motion on the Implementation of the Company's Daily Connected Transactions in 2020 and the forecast of its daily Connected Transactions in 2021", and all the related directors avoided voting.
2. Independent opinions expressed by independent directors
The above related transaction matters have been approved in advance by the independent directors and expressed independent opinions on this matter. The independent directors believe that the company's daily connected transactions in 2020 follow the principles of fairness, fairness and good faith, which are in line with the overall interests of the company and shareholders. After reviewing the company's forecast for the daily connected transaction in 2021, the independent directors believe that the daily connected transaction is conducive to the smooth operation of the company's production and operation, fair to the company and all shareholders, and does not harm the legitimate rights and interests of all shareholders.
3. Opinions of the Audit Committee
The audit Committee of the Company believes that the company's daily connected transactions occur due to the normal needs of the company's daily production and operation, and the pricing policies and pricing basis of the transactions conform to the principles of openness, fairness and justice.
4. Submit to the General Meeting of shareholders for deliberation
According to relevant regulations of Shanghai Stock Exchange Listing Rules and Anhui Tongfeng Electronic Co., LTD. 's Affiliated Transaction Decision-making System, the total amount of the above related transactions is not expected to exceed 5% of the company's audited net assets in the latest period. After the above related transactions are reviewed and approved by the board of directors, there is no need to submit to the shareholders' meeting for a vote.

(2) Forecast and execution of daily connected transactions in 2020

On April 26, 2020, the ninth meeting of the eighth Board of Directors of the Company deliberated and approved the Motion on the Implementation of the Company's Daily Connected Transactions in 2019 and the forecast of daily Connected Transactions in 2020. It is estimated that the total amount of connected transactions related to daily operations in 2020 will be about 41.5 million yuan. The actual related transactions of the company in 2020 were RMB 19,590,300, which did not exceed the estimated amount. The details are as follows:
Unit: Ten thousand Yuan

(III) Estimated amount and type of daily connected transactions in 2021

The Company estimates that in 2021, daily connected transactions refer to transactions involving the purchase of goods, sale of commodities and provision of services between the Company (including its controlling subsidiaries) and related parties (mainly referring to actual controllers and their subsidiaries, controlling shareholders and their subsidiaries, and shareholders of important controlling subsidiaries). It is estimated that the total amount of related transactions related to daily operations in 2021 will be about 18.65 million yuan, which is detailed as follows:

Unit: Ten thousand Yuan

Ii. Introduction of related parties and related relationships

1. Korea SKC Corporation
Korea SKC Corporation, a subsidiary of SK Group, is the largest PET film manufacturer in Korea. On December 7, 2004, Anhui Tongai Electronic Materials Co., LTD. (hereinafter referred to as "Tongai Company") was jointly invested by the company and Korea SKC. The registered capital of Tongai Company is 20.2 million US dollars, of which the company invests 15.15 million US dollars, accounting for 75%, and SKC invests 5.05 million US dollars, accounting for 25%. Tongai company mainly produces and sells BOPET film for capacitors and other electronic materials.
Korea SKC holds 25% of the equity of Tongai Company, the holding subsidiary of the Company. In accordance with the principle of substance over form and the relevant provisions of the Shanghai Stock Exchange listing rules, Korea SKC Company and the Company are recognized as connected transactions. It is expected that in 2021, Tongai will purchase no more than 2.4 million yuan of raw materials and sell no more than 12 million yuan of goods from Korea SKC.
2. Tongling Jingneng Electronics Co., LTD
(1) Name: Tongling Jingneng Electronics Co., LTD
(2) Registered capital of the company: 30 million yuan
(3) Address: Tongling Economic and Technological Development Zone, Anhui Province
(4) Type of enterprise: other limited company (unlisted);
(5) Business scope: General business items: research and development, production and sales of polyolefin films, production and sales of new batteries and their materials, new electronic components and components; Self-support and agent import and export business of all kinds of commodities and technologies, engaged in the import business of raw and auxiliary materials, equipment and spare parts required by the production of the enterprise.
(6) Date of establishment: December 18, 2009
The Company is a holding subsidiary of Anhui Tongfeng Electronics Group Co., LTD., the former controlling shareholder of the Company, which has been associated with the Company for the past twelve months. It is estimated that in 2021, about RMB 750,000 will occur in related transactions due to the company's transfer of power supply to Tongling Jingneng Electronics Co., LTD.
3. Tongling Zhicheng Investment Services Co., LTD
(1) Name: Tongling Zhicheng Investment Services Co., LTD
(2) Registered capital of the company: 5 million yuan
(3) Address: No. 129, West Section of Cuihu Fifth Road, Tongling Economic and Technological Development Zone, Anhui Province
(4) Enterprise type: limited liability company (wholly state-owned);
(5) Business scope: General business projects: Provide investment entrustment, consultation and agency services, handle the establishment, registration, registration and other related procedures for enterprises entering the area, responsible for entrusted assets management, maintenance, operation, business consulting services, farmers' market management, vehicle leasing. (For projects subject to approval according to law, business activities can only be carried out after approval by relevant departments)
(6) Establishment date: February 28, 2017
The company is a 100% holding enterprise of the Management Committee of Tongling Economic and Technological Development Zone, the actual controller of the Company, and is associated with the Company. It is expected that in 2021, the company will have connected transactions of RMB 1 million with the company for entrusted leasing, and RMB 500,000 with the company for renting the other party's apartment.

(2) Association with listed companies

(3) No default occurs in similar connected transactions in the early stage

The execution of similar connected transactions in the early stage was good, and the ability to pay and perform the agreement was normal, without any breach of contract.

Iii. Main contents and pricing policies of affiliated transactions

The Company shall abide by the principles of fairness, justice and reasonableness when conducting related transactions related to daily operation with related parties, and the transaction price shall be based on the price of similar transaction targets in the market in accordance with market rules. According to the transaction content, the Company will sign specific transaction agreements with related parties to specify the transaction price, transaction content and other matters in detail.

Iv. Purpose of Transaction and impact of transaction on listed company

Related transactions related to daily operations between the company and related parties account for a small proportion of similar transactions or total transactions of the company, and have little impact on the current and future financial status and operating results of the company, and do not affect the independence of the company. The above related transactions can meet the normal operation needs of the company, reduce marketing expenses and procurement costs, and contribute to the smooth operation of the company's production and operation.

V. Signing of related transaction agreements

Related transactions between the company and related parties that are related to daily operations will be arranged in detail by signing individual order contracts with each related party according to the specific purchase and sales business in the operation.

Vi. Prepare documents for reference

1. Resolution of the fourth meeting of the ninth Board of Directors of the Company
2. The independent directors approve in advance the written documents and the independent opinions expressed at the Board meeting
3. Written opinion of the Audit Committee
This is to announce.