The board of directors of China Chengtong Development Group Limited ("Company") announced that Mr. Yang Tianzhou and Mr. Li Shufang have been appointed as executive Directors and members of the executive committee of the Board with effect from 22 October 2019. The Board further announced that, with effect from 22 October 2019, Mr. Zhang Bin, an existing executive Director and the chairman of the Board, has resigned as the managing Director of the Company and Mr. Yang has been appointed as the new managing Director of the Company in place of Mr. Zhang. Mr. Zhang has been performing both the roles of the chairman of the Board and the managing Director since 26 June 2019 and this constituted a deviation from Code Provision A.2.1 of the Corporate Governance Code as set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("Listing Rules").

Following the appointment of Mr. Yang as the new managing Director of the Company, Mr. Zhang will remain as the chairman of the Board. As the roles of chairman and managing Director are now separate and performed by different individuals, the Company has re-complied with Code Provision A.2.1 of the Corporate Governance Code. Since September 2019, Mr. Yang has been working as the deputy general manager of China Chengtong Hong Kong Company Limited ("CCHK"), which is a wholly-owned subsidiary of China Chengtong Holdings Group Limited ("CCHG"), the ultimate holding company of the Company.

In addition, Mr. Yang is currently a director of a Hong Kong subsidiary of CCHK. Mr. Li joined the Company as senior manager in January 2005 and has been working as the assistant to general manager of the Company since July 2010. Mr. Li is also currently a director of a number of subsidiaries of the Company.

Since September 2019, Mr. Li has also been working as the deputy general manager of CCHK.