2020 Annual Report of the Board of Supervisors

Dear Shareholders:

2020 In the year , the company's board of supervisors, in accordance with the provisions of laws and regulations such as the Company Law and the Securities Law, and the provisions of the Company Articles of Association, conscientiously performed its supervisory duties, strengthened supervision of the company's operation and management, played a positive role in promoting the standardized operation and healthy development of the company, effectively protected the legitimate rights and interests of shareholders, the company, and employees, and provided a reliable guarantee for the smooth progress of the company's production and operation. The specific report content is as follows:

I. Work of the Board of Supervisors

2020 In the year , in accordance with the relevant provisions of the Company Law, the Company Articles of Association, and other laws and regulations, we conscientiously performed our duties as the board of supervisors, conducting necessary reviews and supervision of the company's legal operation, decision-making procedures, management, related party transactions, financial status, and the performance of duties by directors and senior management.

1 The members of the board of supervisors attended each board meeting and insisted on separately deliberating on major company issues.

2 The board of supervisors actively paid attention to major activities in the company's operation and management, focusing on the company's internal control system construction, and exercised its supervisory responsibilities over the company's major decisions and operational management procedures.

3 The board of supervisors conscientiously performed its function of supervising the company's finances, organizing inspections and supervision of the company's various internal control systems and internal audit systems.

4 Supervised the performance of duties by the company's directors and senior management.

• Company Board of Supervisors Meetings and Resolutions

2020 Year The board of supervisors held a total of 5 meetings in the year , specifically as follows:

( a) Ninth Meeting of the Third Board of Supervisors

The Ninth Meeting of the Third Board of Supervisors was held on February 18, 2020, and the following resolutions were adopted by a show of hands: "Resolution on the Audit Report of Xiangyang Changyuan Donggu Industrial Co., Ltd. for 2019," "Resolution on the Company's Internal Control Self-Assessment Report," "Resolution on the Company's 2019 Annual Financial Settlement Report," "Resolution on the Company's 2020 Annual Financial Budget Report," "Resolution on the Company's 2019 Profit Distribution," "Resolution on the 2019 Annual Work Report of the Board of Supervisors," "Resolution on the Reappointment of Zhongshenghuan Certified Public Accountants LLP as the Company's Audit Firm for 2020," and "Resolution on the Establishment of a Special Account for the Company's Raised Funds."

b) Tenth Meeting of the Third Board of Supervisors

The Tenth Meeting of the Third Board of Supervisors was held on May 19, 2020, and the following resolution was adopted by a show of hands: "Resolution on the Review Report of Xiangyang Changyuan Donggu Industrial Co., Ltd. for the First Quarter of 2020."

c) Eleventh Meeting of the Third Board of Supervisors

The Eleventh Meeting of the Third Board of Supervisors was held on June 18, 2020, and the following resolution was adopted by a show of hands: "Resolution on the Use of Raised Funds to Replace Self-Raised Funds Pre-Invested in Investment Projects."

d) Twelfth Meeting of the Third Board of Supervisors

The Twelfth Meeting of the Third Board of Supervisors was held on August 9, 2020, and the following resolutions were adopted by a show of hands: "Resolution on the Company's Semi-Annual Financial Report for 2020," "Resolution on the Company's Semi-Annual Report and Summary for 2020," "Resolution on the Company's Semi-Annual Profit Distribution Plan for 2020," and "Special Report on the Placement and Actual Use of Raised Funds in the First Half of 2020."

e) Thirteenth Meeting of the Third Board of Supervisors

The Thirteenth Meeting of the Third Board of Supervisors was held on October 30, 2020, and the following resolutions were adopted by a show of hands: "Resolution on the Company's Third Quarter Report for 2020," "Resolution on the Securities Investment Management System," and "Resolution on the Company's Securities Investment Management."

III. The Board of Supervisors' Independent Opinion on the Company's Operation

Through holding board of supervisors meetings and attending important meetings such as the company's board of directors and shareholders' meetings, reviewing documents, etc., the entire process of the company's legally conducted business management activities was supervised, and the following opinions were formed:

1 1. Inspection of the Company's Legal Operation

During the reporting period, the work of the company's board of directors and senior management followed the relevant provisions of the Company Law, the Securities Law, the Shanghai Stock Exchange listing rules, the company's articles of association and the rules of the three meetings, and various internal control systems; the decision-making procedures were legal and effective; the company's directors and senior management were able to diligently perform their duties and faithfully execute the resolutions of the shareholders' meeting and the board of directors; no violations of laws, regulations, the company's articles of association, or acts that harm the company's interests were found; at the same time, the company has strictly fulfilled its information disclosure responsibilities in a timely manner in accordance with the requirements of the Shanghai Stock Exchange listing rules.

2 2. Audit of the Company's Periodic Reports

The board of supervisors carefully reviewed the company's 2019 annual audit report, the first-quarter review report for 2020, the semi-annual report for 2020, and the third-quarter report for 2020, and believes that the preparation and review of each report comply with the relevant laws, regulations, and exchange rules; the report content truthfully, accurately, and completely reflects the company's financial status and operating results, and there are no false records, misleading statements, or material omissions; during the preparation and review period, no insider information leaks or other violations of laws, regulations, the Company Articles of Association, or acts that harm the company's interests occurred.

3 3. Inspection of the Company's Financial Status

During the reporting period, the board of supervisors supervised and inspected the company's financial status and financial management, and believes that the company's financial system is sound, financial management is standardized, and the financial operation is good; the preparation of the company's accounting reports complies with the relevant provisions of the Enterprise Accounting Standards, with no major omissions or false records; the financial reports truthfully and objectively reflect the company's financial status and operating results.

4 4. The Company's Related Party Transactions

No related party transactions occurred in 2020, and the board of supervisors has no objections.

5 5. Supervision of the Use of the Company's Raised Funds

The board of supervisors inspected the use and management of the company's raised funds during the reporting period, and believes that the company strictly followed the relevant provisions of the Company Law, the Securities Law, and the company's "Management Measures for the Use of Raised Funds" in the use and management of raised funds, and there were no violations in the use of raised funds; the specific use of raised funds is consistent with the disclosed information.

IV. Work Arrangements of the Board of Supervisors for 2021

2021 In the year , the members of the company's board of supervisors should continuously improve their work ability, enhance their sense of responsibility, uphold principles, act impartially, and perform their duties diligently. At the same time, the board of supervisors should, in accordance with the requirements of the Company Law and the Company Articles of Association, further improve the corporate governance structure, and work together with the company's board of directors and all shareholders to promote the standardized operation of the company, enhance self-discipline awareness, increase supervision efforts, and effectively assume the responsibility of protecting the rights and interests of shareholders.

2021 The annual work plan of the board of supervisors mainly includes the following aspects:

1. Supervise the company's lawful and compliant actions, and urge the construction and effective operation of the internal control system.
2. Conduct irregular checks on the company's financial situation, and supervise the company's accounting actions through regular review of accounting reports.
3. Supervise directors and senior management to diligently perform their duties and prevent actions that harm the company's interests.
4. Strengthen supervision of major matters such as the company's investment, asset disposal, and related-party transactions, and pay attention to information disclosure.

                          Supervisory Board of Xiangyang Changyuan Donggu Industrial Co., Ltd.

2021 March 22