The board of directors of the China Shenghai Group Limited announces that Mr. Chow Yun Cheung ("Mr. Chow") resigned as an Independent Non-Executive Director of the Company ("Independent Non-Executive Director"), chairman of the Company's audit committee (the "Audit Committee"), member of the Company's remuneration committee (the "Remuneration Committee") and nomination committee (the "Nomination Committee") with effect from 21 July 2023 in order to devote more time to his personal endeavours. Mr. Chow has confirmed that he has no disagreement with the Board and there are no matters in relation to his resignation which should be brought to the attention of the shareholders of the Company (the "Shareholders"). The Board is also not aware of any such matters in relation to the resignation of Mr. Chow that need to be brought to the attention of the Shareholders.

The Board would like to take this opportunity to thank Mr. Chow for his valuable contributions to the Company during her tenure of office as the Independent Non-Executive Director. The Board announced that Mr. Shum Ching Hei has been appointed as the Independent Non-Executive Director, chairman of the Audit Committee and member of the Remuneration Committee and the Nomination Committee with effect from 21 July 2023. Mr. Shum Ching Hei ("Mr. Shum"), aged 36, is currently a member of the Guangdong Yunfu Municipal People's Political Consultative Conference, the chairman of the executive committee of Global Chinese Entreprenuer Commission, the founder and chairman of Chinese Financial Group, and the senior team supervisor of the Hong Kong Traffic Safety Team Planning and Programming Department.

Mr. Shum has over 15 years of experience in accounting, corporate finance and compliance. He obtained a Bachelor of Commerce Honors Degree from McMaster University, Canada, and is a member of the Hong Kong Institute of Certified Public Accountants, a fellow member of the Institute of Public Accountants Australia, a fellow member of the Institute of Management Accountants Australia and a fellow member of the Institute of Financial Accountants. Before the founding of the Chinese Financial Group in 2022, from 2016 to 2019, Mr. Shum served as director of corporate finance in South China Financial Group.

From 2019 to 2022, Mr. Shum served as an executive director at FUTEC Financial Group. Mr. Shum has entered into an appointment letter with the Company for a term of three years. He will hold office until the next annual general meeting of the Company and is thereafter subject to retirement by rotation and re-election in accordance with the articles of association of the Company.

Mr. Shum is entitled to an annual salary of HKD 120,000 plus discretionary bonus which is determined by the Board on the recommendation of the Remuneration Committee and by reference to his duties and responsibilities and prevailing market conditions.