Huaxun Fangzhou Co.Ltd(000687) : Huaxun Fangzhou Co.Ltd(000687) announcement on the reduction of more than 1% of shares by shareholders holding more than 5%

Securities code: 000687 securities abbreviation: * ST Huaxun Announcement No.: 2022-025

Huaxun Fangzhou Co.Ltd(000687)

Announcement on the reduction of more than 1% of shares by shareholders holding more than 5%

The shareholder China Hengtian Group Co., Ltd. guarantees that the information provided to the company is true, accurate and complete without false records, misleading statements or major omissions.

The company and all members of the board of directors guarantee that the contents of the announcement are consistent with the information provided by the information disclosure obligor. 1. Basic information

Information disclosure obligor: China Hengtian Group Co., Ltd

Address: No. 99 Jianguo Road, Chaoyang District, Beijing

Changes in equity from February 10, 2022 to February 22, 2022

Stock brief * ST Huaxun stock code 000687

call

Change type increase □ decrease concerted action person yes □ no

type

Whether it is the largest shareholder or actual controller yes □ no

2. Changes in equity this time

Type of shares number of shares reduced (10000 shares) reduction proportion (%)

A shares 907.3017 1.19

Total 907.3017 1.19

The way of this equity change (centralized trading through stock exchanges)

Multiple choice) block trading through the stock exchange

Others □ (please specify)

3. Shares of listed companies owned by investors and persons acting in concert before and after the change

Shares held before this change shares held after this change

Nature of shares as a percentage of total share capital (10000 shares as a percentage of total share capital) (10000 shares) cases (%) (%)

Total shares held 10348.3017 13.51 9441 12.32

Including: shares with unlimited sales conditions 10348.3017 13.51 9441 12.32

Shares with limited sales conditions —-

Securities code: 000687 securities abbreviation: * ST Huaxun Announcement No.: 2022-025

4. Implementation of commitments, plans, etc

Yes □ no

Note: (1) this change includes the reduction of 4.32 million shares through block trading, with a reduction ratio of 0.5638%. As of this change, the reduction ratio through block trading in any continuous 90 natural days is 1.9995%;

(2) this change includes the reduction of 4.753017 million shares through centralized bidding, and the proportion of commitment and intention reduction made by the bank is 0.6203%. All the sources of share reduction through centralized bidding are from Xiang and planned China Hengtian. Based on the spirit of the notice on matters related to the increase of shares held by major shareholders, directors, supervisors and senior managers of listed companies (Zheng Jian Fa [2015] No. 51) issued by China Securities Regulatory Commission, From July 22, 2015 to July 28, 2015, through Huatai cornerstone 9 directional asset management plan, it increased its holdings of 4753017 shares of Huaxun Fangzhou shares through centralized bidding.

Does this change violate the securities law

Municipal company acquisition management office yes □ no

If yes, please explain the specific situation, rectification plan and treatment measures of violations. Regulations, departmental rules, normative documents and the business rules of the exchange. 5. The shares with restricted voting rights shall be subject to Article 6 of the securities law

Provisions of Article 13, yes □ no

If yes, please specify the proportion of corresponding shares in the share capital of the existing listed company. Explanation on the increase of shares held by shareholders with more than 6.30% of the shares (if applicable) whether the increase meets the requirements of the listed company

Exemption specified in the measures for the administration of acquisition □ no □

About the situation of acquisition, the commitment of shareholders and their concerted actors not to reduce their shares in the company within the legal period 7. Documents for future reference

Securities code: 000687 securities abbreviation: * ST Huaxun Announcement No.: 2022-025

1. Details of shareholding changes of China Securities Depository and Clearing Co., Ltd. 2. Relevant written commitment documents □ 3. Written opinions of lawyers □ 4. Other documents required by Shenzhen Stock Exchange □

It is hereby announced.

Huaxun Fangzhou Co.Ltd(000687) board of directors

February 23, 2022

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