China Huajun : Financial Statements/ESG Information –

CHINA HUAJUN GROUP LIMITED

中國華君集團有限公司

(Incorporated in Bermuda with limited liability)

(Stock Code: 377)

ANNUAL REPORT

2020

CONTENTS

	Pages
Corporate Information	2
Chairman's Statement	4
Management Discussion and Analysis	5
Biography of Directors and Senior Management	14
Corporate Governance Report	16
Report of the Directors	28
Independent Auditor's Report	44
Consolidated Statement of Profit or Loss and Other Comprehensive Income	47
Consolidated Statement of Financial Position	49
Consolidated Statement of Changes In Equity	52
Consolidated Statement of Cash Flows	54
Notes to the Consolidated Financial Statements	57
Five Years Financial Summary	212
Summary of Properties	213

ANNUAL REPORT 2020	1

CORPORATE INFORMATION

Board of Directors

Executive Directors

Mr. Meng Guang Bao (Chairman)

Ms. Zhang Ye (Chief Executive Officer)

Ms. Huang Xiumei

Ms. Bao Limin

Independent Non-Executive Directors

Mr. Zheng Bailin

Mr. Shen Ruolei

Mr. Pun Chi Ping

Audit Committee

Mr. Pun Chi Ping (Chairman)

Mr. Zheng Bailin

Mr. Shen Ruolei

Remuneration Committee

Mr. Zheng Bailin (Chairman)

Mr. Shen Ruolei

Mr. Pun Chi Ping

Ms. Zhang Ye

Nomination Committee

Mr. Shen Ruolei (Chairman)

Mr. Zheng Bailin

Mr. Pun Chi Ping

Ms. Zhang Ye

Company Secretary

Mr. Tam Ka Lung

Authorised Representatives

Ms. Zhang Ye

Mr. Tam Ka Lung

Legal Advisers

Anthony Siu & Co. Solicitors & Notaries Conyers Dill & Pearman

Auditor

SHINEWING (HK) CPA Limited

Principal Bankers

Bank of China (Hong Kong) Limited

Bank of Shanghai Company Limited

Industrial and Commercial Bank of China Limited Jiangnan Rural Commercial Bank Company Limited Shengjing Bank Company Limited

Yingkou Coastal Bank Company Limited

Registered Office

Clarendon House

2 Church Street

Hamilton HM 11

Bermuda

Head Office and Principal

Place of Business in Hong

Kong

36th Floor

Champion Tower

3 Garden Road

Central

Hong Kong

2	CHINA HUAJUN GROUP LIMITED

CORPORATE INFORMATION (continued)

Principal Share Registrar and Transfer Office in Bermuda

Conyers Corporate Services (Bermuda) Limited

Clarendon House

2 Church Street

Hamilton HM 11

Bermuda

Hong Kong Share Registrar and Transfer Office

Union Registrars Limited

Suites 3301-04, 33/F

Two Chinachem Exchange Square

338 King's Road

North Point

Hong Kong

Stock Code

377

Company Website

http://www.chinahuajungroup.com

Investor Relations Contact

Email: [e-mail]

Telephone: [phone]

Fax: [phone]

ANNUAL REPORT 2020	3

CHAIRMAN'S STATEMENT

Dear Shareholders,

I am pleased to present the annual report of China Huajun Group Limited (the "Company") and its subsidiaries (together, the "Group") for the year ended 31 December 2020 (the "Current Year") for the shareholders' perusal.

Highlights

For the Current Year, revenue was approximately RMB3,515.5 million, representing a decrease of approximately RMB184.1 million, or approximately 5.0%, compared to revenue of approximately RMB3,699.6 million for the year ended 31 December 2019 (the "Last Year"). The overall decrease in revenue was attributable to the decrease in sales of petrochemical product trading and the printing business of the Group, mainly due to the uncertain marco-economic environment caused by COVID-19 during the Current Year.

Time goes swiftly on its way. Looking back to the year of 2020, the global environment changed dramatically and became more and more challenging. At the beginning of the year, the unexpected COVID-19 epidemic was severe and a difficult challenge to the society, enterprises and even the Company.

Prospect

The year of 2021 is a crucial year for the Group. We shall continue to assess the situation and implement suitable plans when appropriate. The global economic prospect remains uncertain as the overseas COVID-19 epidemic has not been under control. The domestic reformation is complicated and formidable when the competition between China and the United States has been intensified in multiple aspects. The profound changes in environment leads to new opportunities and challenges. All of us in Huajun shall adhere to the core enterprise value 'Committed to Stepping Forward". To continue serving our shareholders and customer with the quality services, we shall strengthen and develop our enterprise by taking advantage of policy of the Greater Bay area and leveraging the superior brand effect of the listing platform. At the same time, in order to perform better results, we shall keep enhancing our ability in management and operation and retain prudent financial strategy to optimise our financial structure.

Acknowledgement

Finally, on behalf of the board of directors of the Company, I would like to express my sincere gratitude to the shareholders, customers and business partners for their trust and support, and to all employees for their dedication and hard work!

Meng Guang Bao

Chairman

Hong Kong, 31 March 2021

4	CHINA HUAJUN GROUP LIMITED