China Huajun : INSIDE INFORMATION PROFIT WARNING IN RELATION TO ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020

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CHINA HUAJUN GROUP LIMITED ʕ਷ശёණྠ Ϟࠢʮ̡

(Incorporated in Bermuda with limited liability)

(Stock Code: 377)

INSIDE INFORMATION PROFIT WARNING IN RELATION TO

ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020

This announcement is made by China Huajun Group Limited (the "Company", together with its subsidiaries, the "Group") pursuant to the Inside Information Provisions (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules")) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong) and Rule 13.09 of the Listing Rules.

The board of directors (the "Board") of the Company would like to inform the shareholders (the "Shareholders") and potential investors of the Company that, based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the year ended 31 December 2020 ("Year 2020"), the Group is expected to record an increase in loss attributable to equity holders of the Company for the Year 2020 as compared to the loss attributable to the equity holders of the Company of RMB644,710,000 for the year ended 31 December 2019 ("Year 2019"). The loss for Year 2020 is expected to be at a range of 230% to 260% of Year 2019. Based on the information currently available to the Board, such increase in loss for Year 2020 was mainly due to (1) loss on change in fair value of investment properties for Year 2020 while a gain of RMB237.9 million was recorded in Year 2019; (2) increase in finance costs and provision for liquidated damages for certain loan agreements in Year 2020 compared to Year 2019; and (3) impairment losses on properties held for sale and property, plant and equipment.

As the Company is in the process of finalising the annual results of the Group for Year 2020, the information contained in this announcement is only based on the preliminary assessment of the Company's unaudited consolidated management accounts which have not been reviewed or audited by either the audit committee or the auditors of the Company. Actual financial results of the Group may be different from what is contained in this announcement. The Company will announce the annual results of the Group for Year 2020 by the end of March 2021.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

China Huajun Group Limited

Meng Guang Bao Chairman and Executive Director

Hong Kong, 16 March 2021

As at the date of this announcement, the Board comprises Mr. Meng Guang Bao, Ms. Zhang Ye, Ms. Huang Xiumei and Ms. Bao Limin as executive Directors; and Mr. Zheng Bailin, Mr. Shen Ruolei and Mr. Pun Chi Ping as independent non-executive Directors.

If there is any inconsistency in this announcement between the Chinese and English versions, the English version shall prevail.