Jihua Group Co., Ltd. (hereinafter referred to as "Jihua Group"), the core supplier of munitions procurement for the Chinese military and armed police forces, announced today (September 8) that the company’s board of directors has recently received Chairman Yuan Haili, Director and general manager Mr. Duan Yinhai’s written resignation report. Mr. Yuan Haili resigned from the company’s chairman, director, board strategy committee and nomination committee due to job changes; Mr. Duan Yinhai resigned from the company’s director, board strategy committee, and general manager due to job changes. According to relevant regulations, after the resignation of Mr. Yuan Haili and Mr. Duan Yinhai, they will no longer hold any positions in the Jihua Group.

Jihua Group also announced that as nominated by the controlling shareholder Xinxing Jihua Group and reviewed and approved by the Nomination Committee of the company’s board of directors, the company’s board of directors agreed that Mr. Wu Tongxing was a candidate for non-independent director of the company’s fifth board of directors. From the date of expiry of the term of the current board of directors.

According to the announcement, Wu Tongxing was born in 1966, with a university degree, a master's degree, and a senior economist. He joined the work in July 1986 and served as the Deputy Director of the Research Division of the Policy Research Office of the China National Textile and Apparel Council, and the Enterprise Division of the Enterprise Reform Department of the State Textile Industry Administration. Director, Director of the Textile Division of the Economic Operation Bureau of the State Economic and Trade Commission, Investigator of the Enterprise Reform Department, Investigator of the Enterprise Restructuring Bureau of the State-owned Assets Supervision and Administration Commission of the State Council, Director of the Third Division, Deputy Director, Deputy Director of the Enterprise Reform Bureau, and first-level inspector. Member of the Standing Committee of the Party Committee and Deputy General Manager of Hua Group Co., Ltd.

　　The financial report shows that in the first half of 2021, Jihua Group achieved operating income of 7.299 billion yuan, a year-on-year increase of 1.87%; net profit attributable to shareholders of listed companies was 31.468 million yuan, a year-on-year increase of 199.34%.

Regarding the reasons for the changes in performance, Jihua Group explained that during the reporting period, the company actively overcome the impact of many unfavorable factors such as the reduction of military supplies and equipment orders caused by the digestion of military products, the reduction of domestic demand for medical protection materials, and the increase in uncertainty in the international epidemic situation. Firmly establish a market-oriented development concept, seize market opportunities, tap market potential, continue to consolidate the advantages of the traditional military and police clothing market, actively promote the expansion of military and police equipment, emergency protection business, vigorously explore emerging markets, and coordinate advancement Market development in the fields of military products, civilian products, foreign trade, and e-commerce has achieved growth in operating income and net profit.

In the second half of the year, Jihua Group will actively respond to the military’s procurement policy of “pricing excellence”, in the traditional military clothing market, increase product technology empowerment, exchange market orders with high-quality service and honest operation, and maintain the core military supply supplier Leading position; in the military and police equipment market, increase the expansion of military and police equipment business, mainly bulletproof and individual equipment. In the civilian product market such as line fittings and tooling, we will give full play to the company's brand and resource advantages, and on the basis of the continuous penetration of the original customer market, further increase the expansion of the large-capacity market of line fittings and tooling, such as fire protection systems, public security systems, and comprehensive law enforcement. Teams, etc. and large-scale central enterprise markets represented by telecommunications, petroleum and petrochemicals, aviation airports, power grids and postal services.

　　 Public information shows that Jihua Group is mainly engaged in the research and development, production and sales of professional wear, professional footwear, textile printing and dyeing, protective equipment and other products, and develops commerce and logistics business based on domestic and international trade. The company's products are mainly oriented to the military and civilian markets. The main customers are the Chinese military, the armed police, the national uniform clothing department, central enterprises, large and medium-sized enterprises and individual consumers.

Jihua Group is the core supplier of military supplies procurement for the Chinese military and armed police forces. It is an important R&D and production base for military supplies, professional clothing, and professional footwear in China. It has a market for military supplies (including clothing, shoes, hats, accessories, etc.) About 60% of the share; the company is the main production and supplier of the national uniform dressing department and unit and other professional clothing industry. It uniforms the uniforms of the fire protection, public security, justice, procuratorate, court, industry and commerce, taxation, railway, transportation and other countries. The market occupies about 10% of the market; the company has the munitions export qualification, and has the comprehensive support capability of the whole product series, the whole theater coverage, and the whole process service.

　　 As of the first textile network to publish this evening, Jihua Group closed at 3.11 yuan per share, an increase of 1.63%, and a market value of 13.7 billion yuan.