Securities code: 600237 Securities abbreviation: Tongfeng Electronic Announcement Number: Lin 2022-009

Anhui Tongfeng Electronics Co., Ltd. on the wholly-owned subsidiary -- Anhui Tongfeng World Trade Import and Export Co., LTD 

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.

● Investment object name: Anhui Tongfeng Trade Import and Export Co., LTD
● Investment amount: increase the capital by 60 million yuan, increasing the registered capital of the company from 40 million yuan to 10 million yuan

I. Overview of capital increase of wholly-owned subsidiaries
---- Anhui Tongfeng WTO Import and Export Co., LTD. (hereinafter referred to as the "Company or Company"), a wholly-owned subsidiary of Anhui Tongfeng Electronics Co., LTD. (hereinafter referred to as "Tongfeng WTO"), intends to increase its registered capital from the current 40 million yuan to 10 million yuan in accordance with the needs of business development. The capital increase shares will be fully funded by the Company in currency.
On February 11, 2022, the Company held the ninth meeting of the Ninth Board of Directors by means of communication voting. At the meeting, seven directors shall participate in voting, but seven directors actually participate in voting. The meeting with 7 votes in favor, 0 against, 0 abstentions, deliberated on the wholly-owned subsidiary - Anhui Tongfeng Trade Import and Export Co., LTD. Capital increase motion.
The increase of registered capital of the wholly-owned subsidiary does not involve related party transactions, nor does it belong to the material assets reorganization.
Ii. Basic Information of the investment targets
Company name: Anhui Tongfeng World Trade Import and Export Co., LTD
Type of enterprise: limited liability company (sole legal person invested or controlled by no natural person)
Address: No. 399, West Section of Cuihu Third Road, Tongling City, Anhui Province
Registered capital: 40 million yuan
Date of establishment: April 29, 2008
Business scope: Self-operated and agent import and export trade of all kinds of commodities and technologies, import, processing, compensation trade of electronics, chemical industry, machinery equipment, auto parts (except import and export commodities and technologies restricted or prohibited by the state, involving licenses or special approval of business with valid certificates).
Iii. Main contents of capital increase for wholly-owned subsidiaries
At present, the registered capital of Tongfeng World Trade Center is RMB 40 million. In order to meet the needs of its business development and expand its operating capacity, the Company plans to increase the capital of Tongfeng World Trade Center with its own capital of RMB 60 million. Upon completion of the capital increase, the registered capital of Tongfeng WTO will increase from RMB 40 million to RMB 10 million.
At the same time, the board of directors authorized the management of the company to handle the procedures related to the capital increase.
Iv. The impact of the capital increase on the company
As a wholly-owned subsidiary of the company, Tongfeng WTO is responsible for the import and export business of the company, mainly acting as the agent for the import of raw materials and equipment required by the production of the company and the export business of products. The capital increase of Tongfeng WTO can meet the needs of the operation and development of the subsidiary, further enhance its financial strength and comprehensive competitiveness, provide strong support for the business development of the company, and contribute to the stable operation of the company's production and operation.
The Company's capital increase to the wholly-owned subsidiary comes from the company's self-raised funds, which will not have adverse effects on the company's financial and operating conditions, and there is no harm to the interests of the company and all shareholders.
This is to announce.