On March 30, 2022, the Board of Huatai Securities Co., Ltd. received a written resignation report from Mr. Chen Chuanming, an independent non-executive Director. Mr. Chen Chuanming has proposed to resign as an independent non-executive Director of the fifth session of the Board of the Company, the chairman of the Nomination Committee of the Board and the chairman of the Remuneration and Appraisal Committee of the Board as he has been serving as an independent non-executive Director of the Company for 6 consecutive years. Mr. Chen Chuanming has confirmed that there is no disagreement between him and the Board, and to the best of his knowledge, there is no matter in relation to his resignation that needs to be brought to the attention of the Shareholders.

As the resignation of Mr. Chen Chuanming will cause the proportion of independent non-executive Directors of the Company to the total members of the fifth session of the Board below one-third, Mr. Chen Chuanming has promised to continue to perform his duties until the date when the new independent non-executive Director is elected. According to the Articles of Association, the Board consists of 13 Directors, including at least one-third independent Directors. Therefore, the Board resolved to nominate Mr. Wang Quansheng as the candidate for the independent non-executive Director of the fifth session of the Board of the Company.

Upon passing of the resolution on the election of Mr. Wang Quansheng as a candidate for an independent non-executive Director of the fifth session of the Board at the general meeting of the Company, Mr. Wang Quansheng will enter into a service contract with the Company and replace Mr. Chen Chuanming to perform his duties as an independent non-executive Director of the fifth session of the Board for a term until the end of the term of the current session of the Board. Pursuant to the Articles of Association, Mr. Wang Quansheng shall be eligible for re-election upon the expiry of his term of office. Mr. Wang Quansheng is a doctor of business management.

A professor and the Dean of the Department of Marketing and E-commerce of the Business School of Nanjing University from October 2013 to September 2016; and a professor and the Associate Dean of the Management School of Nanjing University from September 2016 to December 2020. He has been a professor and the Associate Dean of the Business School of Nanjing University since December 2020. Recently, the Company received the Letter on Adjustment of Director from Jiangsu Communications Holding Co., Ltd., a Shareholder holding no less than 3% of the outstanding voting shares of the Company.

According to work requirements, Jiangsu Communications Holding Co., Ltd. has nominated Mr. Chen Zhongyang as a non-executive Director of the fifth session of the Board of the Company, and Mr. Chen Yongbing will cease to be a non-executive Director of the fifth session of the Board of the Company. Meanwhile, according to the requirements of relevant laws and regulations and the Articles of Association, the Chairman of the Company has nominated Ms. Yin Lihong as an executive Director of the fifth session of the Board of the Company, and Mr. Zhu Xuebo will cease to be an executive Director of the fifth session of the Board of the Company. Upon passing of the resolution on the election of Mr. Chen Zhongyang as a candidate for a non-executive Director of the fifth session of the Board at the general meeting of the Company, Mr. Chen Zhongyang will enter into a service contract with the Company and replace Mr. Chen Yongbing to perform his duties as a non-executive Director of the fifth session of the Board for a term until the end of the term of the current session of the Board; and upon passing of the resolution on the election of Ms. Yin Lihong as a candidate for an executive Director of the fifth session of the Board at the general meeting of the Company, Ms. Yin Lihong will enter into a service contract with the Company and replace Mr. Zhu Xuebo to perform her duties as an executive Director of the fifth session of the Board for a term until the end of the term of the current session of the Board.

Pursuant to the Articles of Association, Mr. Chen Zhongyang and Ms. Yin Lihong shall be eligible for re-election upon the expiry of their terms of office. Mr. Chen Zhongyang is a senior engineer of the researcher rank. He served as a staff member and the Deputy Section Chief of the Planning Division of the Jiangsu Expressway Command Office (presiding over the work) from June 1992 to November 2000.

Currently, Mr. Chen Zhongyang is also a director of Jinling Hotel Co., Ltd. and a director of China Eastern Airlines Jiangsu Co., Ltd. Ms. Yin Lihong has served as Deputy Secretary of the Party Committee of the Company from June 2021 to present.