Zhitong Financial App News, China Hongguang (08646) issued an announcement that on May 12, 2022, the company entered into a termination agreement (termination agreement) with Bright Global, and the company and Bright Global agreed to terminate the equity trading agreement immediately. Following the execution of the termination Agreement, the Company's obligations and obligations under the Equity Sale and purchase Agreement with Bright Global have been discharged; the Company has not paid any deposit in respect of the acquisition and there is no need for the parties to make any compensation to each other. The reason for the termination Agreement is that certain prerequisites under the Equity Sale and purchase Agreement have not been met, including that the necessary information for the preparation of the circular on the Equity Sale and purchase Agreement is not yet available, as a result, the company was unable to obtain the approval of the independent shareholders on the terms of the Equity Sale and purchase Agreement.

The Board considers that the terms of the termination Agreement are fair and reasonable and in the interests of the Company and shareholders as a whole, and that the termination does not have any material adverse impact on the Group's business operations and financial position.