Honghua : RESIGNATION OF FINANCIAL CONTROLLER

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HONGHUA GROUP LIMITED

宏華集團有限公司

(a company incorporated in the Cayman Islands with limited liability)

(Stock Code: 196)

RESIGNATION OF FINANCIAL CONTROLLER

The board (the "Board") of directors of Honghua Group Limited (the "Company", together with its subsidiaries, the "Group") announces that Mr. Yuan Hai ("Mr. Yuan") has been appointed as the Chairman of Honghua International Co., Ltd. (四川宏華國際科貿有限公

司), a wholly-owned subsidiary of the Company. Mr. Yuan will be committed to the international marketing business of the Group and has resigned as the financial controller of the Company (the "Financial Controller") with effect from 31 July 2020 due to the change of position.

Mr. Yuan has confirmed that there is no disagreement between him and the Board, and there is no matter that needs to be brought to the attention of shareholders of the Company in relation to his resignation.

Mr. Yuan's responsibilities as the Financial Controller will be undertaken by Ms. Xu Xiufang. Ms. Xu Xiufang has been the chief financial officer of the Company since 29 March 2017, and is fully responsible for the financial management of the Company.

The Board would like to express its sincere gratitude to Mr. Yuan for his contribution to the Company during his tenure of office.

On behalf of the Board

Honghua Group Limited

Jin Liliang

Chairman

PRC, 31 July 2020

As at the date of this announcement, the executive directors of the Company are Mr. Jin Liliang (Chairman), Mr. Zhang Mi and Mr. Ren Jie, the non-executive directors of the Company are Mr. Han Guangrong and Mr. Chen Wenle, and the independent non-executive directors of the Company are Mr. Liu Xiaofeng, Mr. Chen Guoming, Ms. Su Mei, Mr. Poon Chiu Kwok, Mr. Chang Qing and Mr. Wei Bin.