Securities code: 600237 Securities abbreviation: Tongfeng Electronic Number: Lin 2021-010

Anhui Tongfeng Electronics Co., LTD
The announcement of no profit distribution in 2020

 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.

l 2020 annual profit distribution plan is: no distribution, and no conversion of accumulation fund into additional capital stock.

l This profit distribution plan has been reviewed and approved by the fourth meeting of the ninth Board of Directors and the third meeting of the ninth Board of Supervisors of the company, and it needs to be submitted to the annual shareholders' meeting in 2020 for review.

I. The Company's 2020 annual profit distribution plan

According to the audit of Rongcheng Certified Public Accountants (Special general Partnership), the net profit attributable to the listed company achieved by the merger in 2020 is 7,909,179.27 yuan, and the undistributed profit at the beginning of the year is -379,119,359.57 yuan. By the end of 2020, the consolidated profit attributable to the listed company available for distribution to shareholders is -371,210,180.30 yuan. The net profit achieved by the parent company in 2020 is 5,660,769.37 yuan, and the undistributed profit at the beginning of the year is -373,419,039.60 yuan. By the end of 2020, the profit available for shareholders of the parent company is -367,758,270.23 yuan.

In view of the negative profit distribution available to shareholders of the parent company in 2020, the plan of profit distribution in 2020 is: no distribution, and no conversion of accumulation fund into additional share capital. The profit distribution plan above has yet to be submitted to the company's 2020 annual shareholders meeting for deliberation.

The profit distribution plan above has yet to be submitted to the company's 2020 annual shareholders meeting for deliberation.

Ii. Reasons for no profit distribution in 2020

According to the relevant provisions of the Articles of Association, when the company takes cash dividend, the distributable profit realized in the year (i.e. the after-tax profit after the company makes up the loss and draws the provident fund) is positive and the cash flow is abundant. The implementation of cash dividend will not affect the company's subsequent sustainable operation. In view of the negative profit available to shareholders of the parent company in 2020, according to the relevant provisions of the Company's Articles of Association and considering the actual situation of the company's current operation and development, in order to ensure the cash needs of the company's future development, the company's board of directors has formulated the profit distribution plan for 2020 as follows: no distribution or conversion of reserve fund into additional share capital.

Iii. Opinions of the Board of Directors

The fourth meeting of the ninth Board of Directors of the Company deliberated and approved the 2020 Annual Profit Distribution Plan of the Company and agreed to submit the plan to the 2020 annual general meeting of shareholders for deliberation.

Iv. Opinions of the Board of Supervisors

The third meeting of the ninth Board of Supervisors of the Company reviewed and approved the Company's 2020 Profit Distribution Plan. The Board of Supervisors considers that the 2020 annual profit distribution plan proposed by the Board of directors conforms to the actual situation of the company and does not violate the cash dividend policy stipulated in the Articles of Association, and agrees to submit the plan to the board of directors of the Company and the general meeting of shareholders for deliberation.

V. Opinions of independent directors

The independent directors of the company believe that, in view of the negative profit available for distribution to shareholders in 2020, they agree to the plan of no distribution in 2020 and no conversion of accumulation fund into increased share capital, and agree to submit the plan to the company's 2020 annual general meeting of shareholders for deliberation.

6. Relevant risk tips

This profit distribution plan still needs to be submitted to the company's annual general meeting of shareholders in 2020 for deliberation. Please kindly request the majority of investors to invest rationally and pay attention to investment risks.

This is to announce.