China Huajun : Financial Statements/ESG Information –

CONTENTS

CORPORATE INFORMATION (continued)

Principal Share Registrar and Transfer Office in Bermuda

Ocorian Services (Bermuda) Limited Victoria Place, 5th Floor

31 Victoria Street, Hamitton Pembroke, HM10 Bermuda

Hong Kong Share Registrar and Transfer Office

Union Registrars Limited

Suites 3301-04, 33/F

Two Chinachem Exchange Square

338 King's Road

North Point

Hong Kong

Stock Code

377

Company Website

http://www.chinahuajungroup.com

Investor Relations Contact

Email: ir@chinahuajungroup.com

Telephone: (852) 2290 9222

Fax: (852) 2290 9333

CHAIRMAN'S STATEMENT

Dear Shareholders,

I am pleased to present the annual report of China Huajun Group Limited (the "Company") and its subsidiaries (together, the "Group") for the year ended 31 December 2021 (the "Current Year") for the shareholders' perusal.

Highlights

For the Current Year, revenue was approximately RMB3,512.4 million, representing a decrease of approximately RMB3.1 million, or approximately 0.1%, compared to revenue of approximately RMB3,515.5 million for the year ended 31 December 2020 (the "Last Year"). The overall decrease in revenue was attributable to the decrease in revenue generated from Property Development and Investments business. During the Current Year, the PRC government implemented several policies to cool down the overheating in the property market and as such, the property prices suffered and this resulted the decrease in revenue for Property Development and Investment business. The decrease was partially set-off with the increase in revenue from Printing and Trading and Logistics business. The increase in Printing revenue was mainly due to the gradual recovery from the overseas market. The increase in Trading and Logistics revenue was mainly due to the recovery in the PRC market following the improvement of COVID-19.

Time goes swiftly on its way. Looking back to the year of 2021, the business environment became more and more challenging. COVID-19 epidemic was continuing severe and many countries imposed stringent quarantine policies, creating a difficult challenge to the society, enterprises and even the Company. All business segments worked hard and forge, moving forward to adapt the situation of the epidemic with flexibility, firmly implementing various tasks and goals.

Prospect

In the days to come, we shall continue to assess the situation and implement suitable plans when appropriate. The global economic prospect remains uncertain, the economic situation in the Mainland China is full of challenges. The profound changes in environment leads to new opportunities and challenges. All of us in Huajun shall adhere to the core enterprise value 'Committed to Stepping Forward". To continue serving our shareholders and customer with the quality services, we shall strengthen our enterprise and reduce the gearing ratio and accelerate disposal and sale of existing assets by taking advantage of policy of the Greater Bay area and leveraging the superior brand effect of the listing platform. At the same time, we shall keep enhancing our ability in management and operation and retain prudent financial strategy to optimise our financial structure and improve the Company's profitability.

Acknowledgement

Finally, on behalf of the board of directors of the Company, I would like to express my sincere gratitude to the shareholders, customers and business partners for their trust and support, and to all employees for their dedication and hard work!

Meng Guang Bao

Chairman

Hong Kong, 23 June 2022