Security Code: 603950 Security Abbreviation: Changyuan Donggu Announcement No.: 2021-002

Xiangyang Changyuan Donggu Industrial Co., Ltd.

Regarding Certain Directors, Supervisors, and Senior Management Personnel of the Company

Announcement of the Plan to Increase Shareholdings in the Company

Important Note:

50. Xiangyang Changyuan Donggu Industrial Co., Ltd. (hereinafter referred to as the “Company”) announces that certain directors, supervisors, and senior management personnel plan to increase their holdings of the Company’s shares through methods permitted by the Shanghai Stock Exchange (including but not limited to centralized bidding and block trades) within 12 months from the date of this announcement, with a total intended increase in value of no less than RMB 10 million.
50. The proposed price for the additional share purchase is no more than RMB 40.00 per share.
50. Source of funds for this increase-in-ownership plan: the individual’s lawful personal funds.
50. The implementation of this share‑increase plan may be delayed or even fail due to changes in the securities market or delays in the availability of funds.

The relevant details are hereby announced as follows:

I. Basic Information on the Increasing Holder

(1) Entities Increasing Their Holdings: Directors and Deputy General Managers Mr. Feng Shengzhong and Mr. Chen Xuzhou, Supervisor Mr. Li Shuangqing, Deputy General Manager Mr. Huang Cheng, Chief Financial Officer Ms. Wang Hongyun, and Board Secretary Mr. Liu Wangcheng. None of the aforementioned entities had disclosed any plans to increase their holdings within the twelve months preceding this announcement.

(2) Current shareholding: Mr. Feng Shengzhong holds 466,960 shares, representing 0.2017% of the company; Mr. Chen Xuzhou holds 60,000 shares, representing 0.0259%; Mr. Huang Cheng holds 70,000 shares, representing 0.0302%; and Mr. Liu Wangcheng holds 1,000 shares. No other individuals hold any shares in the company directly.

II. Main Details of the Share Increase Plan

(1) The primary purpose of this share increase is to express confidence in the company’s sustained, sound development and recognition of its long-term investment value.

(2) The shares to be increased in this transaction are the Company’s A-shares with no sale restrictions and freely tradable.

(3) The proposed cumulative amount for this share-acquisition plan shall be no less than RMB 10 million.

(4) Proposed price for the additional share purchase: The proposed purchase price shall not exceed RMB 40.00 per share.

(5) Implementation period of this share‑increase plan: from January 18, 2021, to January 17, 2022 (the implementation period exceeding six months reflects prudent consideration of the personal cash‑flow needs of directors, supervisors, and senior management). During the implementation period, if the company’s shares are suspended from trading for more than ten consecutive trading days due to the planning of a material matter, the share‑increase plan will be deferred until the shares resume trading, and an appropriate announcement will be made promptly.

(6) Funding arrangement for the proposed share increase: personal lawful, self-owned funds.

(7) Method of increasing shareholding: The company’s shares will be increased opportunistically through the Shanghai Stock Exchange trading system.

III. Risk of Uncertainty in the Share Increase Plan

The implementation of this share‑increase plan may be delayed or even fail due to changes in the securities market or delays in the availability of funds.

IV. Commitments by the Increasing Holder

The company’s directors, supervisors, and senior management participating in this share‑increase plan undertake to strictly comply with applicable regulations when increasing their holdings of the company’s shares and to refrain from selling any of their holdings during the implementation period of the plan and for the statutory holding period.

V. Other Notes

This increase in shareholding will not result in any change to the company’s controlling shareholder or actual controller. The company will continue to monitor developments regarding share purchases by its directors, supervisors, and senior management, and will promptly fulfill its information disclosure obligations in accordance with the Shanghai Stock Exchange’s Rules for Listing Stocks and the Guidelines on the Format of Interim Announcements, specifically “No. 99: Announcement on Share Increase Plans/Progress/Results by Shareholders and Directors/Supervisors/Senior Management of Listed Companies,” among other relevant regulations.

This is hereby announced.

Xiangyang Changyuan Donggu Industrial Co., Ltd.

Board of Directors

2021 January 19