Announcement on Engagement of the Accounting Firms for 2021 of China Guangfa Bank Co., Ltd.

The Board of Directors and all directors of China Guangfa Bank Co., Ltd. ensure that the contents of this Announcement are free from any misrepresentation, misleading statement and material omission, and that they will assume joint and several liability for the truthfulness, accuracy and integrity of the contents.

On August 24, 2021, China Guangfa Bank Co., Ltd. (hereinafter referred to as the "Bank") held the Tenth Meeting of the Ninth Board of Directors. The meeting considered and approved the proposal on the Engagement of the Accounting Firms in 2021, agreed that PWC Zhong Tian (Special General Partnership) as Accounting Firms of the Bank for 2021. The details are as follows:

1¡¢Basic Information of Engagement of the Accounting Firms

(1) Firm Information

Basic Information

PWC Zhong Tian was formerly PWC Dahua Accounting Firm established on March 28, 1993, and was approved to change its name to PWC Zhong Tian Accounting Firm Co., LTD in June 2000. Approved by the Finance and Accounting Letter (2012) No. 52 of the Ministry of Finance on December 24, 2012, it was transformed into PWC Zhong Tian CPA Firm (special general partnership) on January 18, 2013. The registered address is Room 01, Unit 507, DBS Tower, 1318 Lujiazui Ring Road, China (Shanghai) Pilot Free Trade Zone.

PWC Zhong Tian is a member of PWC International network. It has the CPA certificate and the audit qualification of H-share enterprises. It is also an accounting firm with securities and futures related business qualification approved by the Ministry of Finance and China Securities Regulatory Commission. PWC zhongday is also registered with the USPCAOB and the UKFRC to conduct audit activities. PWC Zhong Tian has rich experience in securities business and good professional service ability.

PWC Zhong Tian's lead partner is Dan Li. As of December 31, 2020, PWC Zhong Tian has 229 partners and 1359 certified public accountants, among which 327 certified public accountants have signed audit reports on securities services since 2013.

PWC Zhong Tian's revenue in most recent fiscal year(2020) is RMB 6115 million, audit revenue is RMB 5692 million, security revenue is RMB 2861 million.

PWC Zhong Tian's audit clients for financial statements of listed companies in A share is 103,total audit fee is RMB 584 million. Major industries include manufacturing, finance, transportation, warehousing and postal services, real estate and wholesale and retail, audit clients in finance is 16.

Investor protection capability

In terms of investor protection capability, PWC Zhong Tian (Special General Partnership) has taken out occupational insurance in accordance with relevant laws and regulations. The cumulative compensation limit of occupational insurance and the total amount of occupational risk fund exceed RMB 200 million, and the withdrawal of occupational risk fund or purchase of occupational insurance conform to relevant regulations. In the past three years, PWC Zhong Tian (Special General Partnership)  has assumed civil liability in relevant civil litigation without any cause of practice.

Credit record

PWC Zhong Tian (Special General Partnership) and its employees have not been subject to criminal punishment, administrative punishment, self-regulatory measures and disciplinary measures of stock exchanges, industry associations and other self-regulatory organizations for their practices in the past three years; PWC Zhong Tian (Special General Partnership) has not been subject to administrative supervision measures of CSRC, its local offices and industry competent authorities due to its practice behavior. At PWC Zhong Tian (Special General Partnership) four junior staff because of the individual investment behavior in violation of relevant provisions, independence in 2019 received warning letter issued by the Shanghai securities regulatory bureau for its individual, the individual behavior does not affect the effectiveness of the quality control system for PWC Zhong Tian (Special General Partnership) or involve audit professional quality of the project, then have been the four staff from PWC Zhong Tian (Special General Partnership) departure. According to relevant laws and regulations, the above administrative regulatory measures will not affect PWC Zhong Tian (Special General Partnership) to continue to undertake or perform securities service business and other business.

(2)Peoject Information

Basic Information

Project Partner and Signed CPA: Ms. Ye Shaokuan is a practicing member of The Chinese Institute of Certified Public Accountants(since 2014) and Hong Kong society of accountants(since 1995) and a senior member of the UK institute of Chartered Accountants. She engaged in the audit of listed companies since 1997 and has been practicing in PWC Zhong Tian since 2002.She has provided audit services for many IPO and listed companies.

Quality control Review Partner: Mr. Zhou Shiqiang is a practicing member of The Chinese Institute of Certified Public Accountants and Hong Kong society of accountants and a senior member of the UK institute of Chartered Accountants. He has been engaged in the audit of listed companies since 1992. He has provided audit services for many IPO and listed companies.

Project Director and Signed CPA: Ms. Lu Jian is a practicing member of The Chinese Institute of Certified Public Accountants and Hong Kong society of accountants and a senior member of the UK institute of Chartered Accountants. She has been practicing in PWC Zhong Tian since 1999. She has provided audit services for many IPO and listed companies.

Credit record

Nearly three years, the sign of proposed project partners, the signing CPA and quality control of certified public accountants audit partner is not to any criminal punishment and administrative punishment, not because of occupational behavior by the securities supervision and administration institution, industry or the competent departments of administrative supervision and management measures, such as by an exchange, industry association and self-discipline organization self-discipline supervision measures and disciplinary action.

Independence

There are no circumstances that could affect the independence of the proposed project partner, the signing CPA and the project quality control review partner.

Audit Fees

According to the audit scope of the bank and the estimated workload of the accounting firm. The bank's annual financial statement audit and related service charges for 2021 are proposed to be RMB 6.39 million, down 1.19 million or 16% compared with the previous year.

2¡¢Procedure of Engagement of the Accounting Firms

(1)Audit Committee of the Ninth Board of Directors held the Seventh Meeting on August 18, 2020, approved the proposal on the Engagement of the Accounting Firms in 2021, considered the reasons for the change of accounting firm are justified and PWC Zhong Tian (Special General Partnership) can meet the requirements of providing audit services for the Bank, suggested engagement of the Accounting Firms for 2021 of the Bank, agreed to refer the proposal to the Board of Directors. The audit fee is RMB 6.39 million.

(2)The Independent Directors of the Bank have approved the Engagement of the Accounting Firms, agree to submit the proposal on the Engagement of the Accounting Firms and its fees for the year 2021 to the Board of Directors of the Bank for consideration, and express their independence opinions on this matter as follows:

PWC Zhong Tian (Special General Partnership) shall have the qualification and professional ability to engage in financial auditing, the ability to protect investors, and rich experience in auditing, and shall meet the independence requirements of relevant independence policies and professional codes. The reasons for the change of the accounting firm are justified and sufficient, and the review procedure of the appointment is in accordance with the relevant laws and regulations and the provisions of the articles of association.

(3) The Bank held the Tenth Meeting of the Ninth Board of Directors. The meeting considered and approved the proposal on the Engagement of the Accounting Firms in 2021, agreed that PWC Zhong Tian (Special General Partnership) be engaged to audit the financial statement of the Bank for 2021. Valid vote 14, Consent 14, Against 0, Waiver 0.

(4) The engagement of the accounting firm shall be submitted to the shareholders' meeting for consideration and shall take effect from the date of approval by the shareholders' meeting.

It is hereby announced.

Board of Directors, China Guangfa Bank Co., Ltd.

August 26, 2021