Announcement on Engagement of the Accounting Firm for 2022 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.

Important note:

l   The Accounting Firm engaged: PWC Zhong Tian (Special General Partnership)

1¡¢Basic Information of Engagement of the Accounting Firm

(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. It transformed into PWC Zhong Tian CPA Firm (special general partnership) on January 18, 2013, approved by the Finance and Accounting Letter (2012) No. 52 from the Ministry of Finance on December 24, 2012. 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 Zhong Tian is also registered with the US PCAOB and the UK FRC 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, 2021, PWC Zhong Tian has 257 partners and 1401 certified public accountants, among which 346 certified public accountants have signed audit reports on securities services since 2013.

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

The number of PWC Zhong Tian's A share listed audit clients 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, also, there are 16 audit clients in financial sector.

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 no civil liability caused by practicing behaviors in relevant civil litigation.

Credit record

PWC Zhong Tian (Special General Partnership) and its employees have not been subject to criminal punishment,administrative punishment,self-regulatory measures or 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. In 2019, there are four junior staffs in PWC Zhong Tian (Special General Partnership) received warning letter issued by the Shanghai securities regulatory because of their individual investment behaviors which are in violation of relevant regulations, the above individual behaviors do not affect the effectiveness of the quality control system for PWC Zhong Tian (Special General Partnership) or involve audit professional quality of the project, the four staffs subsequently resigned from PWC Zhong Tian (Special General Partnership). According to relevant laws and regulations, the above administrative regulatory measures will not affect the securities service business and other business of PWC Zhong Tian (Special General Partnership) .

(2) Project Information

Basic Information

Project Partner and CPA: Ms. Yang Shangyuan, a practicing member of the Chinese Institute of Certified Public Accountants, became a certified public accountant since 2014 and began practicing at PwC Zhongtian since 1998, and has provided securities business audit services such as IPO filing audit and annual financial statement audit for numbers of listed companies

Quality control Review Partner: Mr. Zhou Shiqiang, a practicing member of The Chinese Institute of Certified Public Accountants, Hong Kong society of accountants and a senior member of the UK institute of Chartered Accountants, who 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 CPA: Ms. Lu Jian, a practicing member of The Chinese Institute of Certified Public Accountants, Hong Kong society of accountants and a senior member of the UK institute of Chartered Accountants, who has been practicing in PWC Zhong Tian since 1999, also has provided audit services for many IPO and listed companies.

Credit record

Ms. Yang Shangyuan, The project partner and Signed CPA, Mr. Zhou Shiqiang, Quality control Review Partner and Ms. Lu Jian, Project Director and Signed CPA have not subject to any criminal punishment or administrative punishment, and have not received any administrative supervision and management from the securities supervision and administration institution caused by practicing behaviors, and have not received any self-discipline supervision measures or disciplinary action from the Stock Exchange or industry association.

Independence

There are no circumstances that could affect the independence of the proposed project partner, the signed 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 2022 are proposed to be RMB 6.39 million, which is the same as the service charge for previous year.

2¡¢Procedure of Engagement of the Accounting Firms

(1)Audit Committee of the Ninth Board of Directors held the Thirteenth Meeting on May 26, 2022, approved the proposal on the Engagement of the Accounting Firms in 2022, considered the reasons for the Engagement 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 2022 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 2022 to the Board of Directors of the Bank, and express their independent 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 Engagement of the Accounting Firm are justified and sufficient, and the review procedure of the engagement is in accordance with the relevant laws, regulations and the articles of association.

(3)The Bank held the Eighteenth Meeting of the Ninth Board of Directors. The meeting considered and approved the proposal on the Engagement of the Accounting Firms in 2022, agreed that PWC Zhong Tian (Special General Partnership) be engaged to audit the financial statement of the Bank for 2022. Valid vote 13, Consent 13, 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.

June 13 , 2022