The board (the "Board") of directors (the "Directors") of HC Group Inc. announce that Mr. Zhang Yonghong will step down as the chief executive officer ("CEO") of the Company (and will remain as an executive Director) with effect from 3 February 2023 to focus on the business affairs and development of the Group's subsidiary ­ Beijing Panpass Information Technology Co. Ltd. ("Beijing Panpass"). Mr. Liu Jun (an executive Director and the chairman of the Company) has been appointed as the CEO with effect from the same date.

Mr. Zhang has been the chairman of the board of directors and the general manager of Beijing Panpass since 2018. As the Company has announced on 10 January 2023, Beijing Panpass is considering a potential public offering and listing on the Beijing Stock Exchange. This work adjustment will allow Mr. Zhang to focus on Beijing Panpass, and promote Beijing Panpass' corporate governance in preparation for its future plans and developments, and is also in line with the applicable requirements under relevant rules of the Beijing Stock Exchange.

Mr. Liu has been overseeing the Group's strategic development, he has extensive experience in the industry and the experience of acting as the CEO of the Group. The Company believes that this work adjustment can facilitate Beijing Panpass's development, and allow the Group to maintain its efficient planning and implementation of business decisions and strategies under consistent leadership of the current management team without compromising the balance of power and authority, and is beneficial to the Group as a whole. Mr. Liu, aged 45, is an executive Director, the chairman and CEO of the Company.

Mr. Liu was appointed as an executive Director with effect from 12 September 2016, and he previously acted as the CEO from October 2017 to January 2019. From 2004 to 2011, Mr. Liu was the chief executive officer of Yigao Group Company Limited during which he led the entity into the information technology businesses. Mr. Liu obtained a Master's degree in Chemical Engineering and a Bachelor's degree in Chemical Engineering, Bio-engineering and Chemical Processing both from Zhejiang University in March 2004 and June 2000 respectively.

Mr. Liu is currently a member of the 6th Beijing Changping District Committee of the Chinese People's Political Consultative Conference.