Securities code: 600237 Securities abbreviation: Tongfeng Electronic Number: Lin 2022-015

Announcement of Anhui Tongfeng Electronics Co., Ltd. on no profit distribution in 2021

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 2021 annual profit distribution plan: no distribution, and no conversion of accumulation fund into capital stock.

l This profit distribution plan has been deliberated and approved by the tenth meeting of the ninth Board of Directors and the eighth meeting of the ninth Board of Supervisors of the Company, and it needs to be submitted to the company's annual general meeting of shareholders in 2021 for deliberation.
I. The Company's 2021 annual profit distribution plan
According to the audit of Rongcheng Certified Public Accountants (Special General Partnership), the net profit of the parent company in 2021 is RMB 51,622,600, and the undistributed profit at the beginning of the year is RMB 36,775.83, and the profit available to shareholders of the parent company by the end of 2021 is RMB 316,135,700. In view of the negative profit distribution available to shareholders of the parent company in 2021, the plan of profit distribution in 2021 is: neither distribution nor conversion of accumulation fund into additional capital stock. The profit distribution plan above has yet to be submitted to the company's annual general meeting of shareholders in 2021 for deliberation.
Ii. Reasons for no profit distribution in 2021
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 2021, 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 guarantee the cash needs of the company's future development, the company's board of directors has formulated the 2021 annual profit distribution plan as follows: neither distribution nor conversion of accumulation fund into capital stock.
Iii. Opinions of the Board of Directors
The tenth meeting of the ninth Board of Directors of the Company reviewed and approved the 2021 Annual Profit Distribution Plan of the Company, and agreed to submit the plan to the 2021 Annual general meeting of shareholders for deliberation.
Iv. Opinions of the Board of Supervisors
The eighth meeting of the Ninth Supervisory Board of the Company reviewed and approved the Company's 2021 Profit Distribution Plan. The Board of Supervisors considers that the 2021 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 hold that: in view of the negative profit available for distribution to shareholders in 2021, they agree to the plan of no distribution in 2021 and no conversion of accumulation fund into capital stock, and agree to submit the plan to the Company's annual general meeting of shareholders in 2021 for deliberation.
6. Relevant risk tips
This profit distribution plan still needs to be submitted to the company's annual general meeting in 2021 for deliberation. Please kindly request the majority of investors to invest rationally and pay attention to investment risks.
This is to announce.