The board of directors of the company received Mr. Hu Chun's written resignation in January 18, 2019. For personal reasons, Mr. Hu Chun applied to resign as deputy general manager of Shanghai Shen Da Limited by Share Ltd. According to the relevant regulations and the provisions of the articles of association, Mr. Hu Chun's resignation application came into effect on the date of his resignation report to the board of directors. Mr. Hu Chun no longer acted as deputy general manager of the company, but he continued to serve as the Party committee member of the company, the general manager of the new material business department of our company, the Party branch secretary and general manager of Shanghai Shenda group new material Co., Ltd., and the executive director of Shanghai New Textile Industrial Textiles Co., Ltd., a wholly owned subsidiary of the company.

As of the announcement date, Mr. Hu Chun holds the number of shares of the company: 24103 shares. According to the relevant provisions of the company law and the detailed rules for the implementation of shareholding and directors, supervisors and senior managers of the stock exchange of Shanghai stock exchange, the shares held by the company shall not be spanferred within six months after leaving office. The shares spanferred annually shall not exceed 25% of the total shares of the company held within 6 months after the expiration of the term.