China Qidian Guofeng Holdings Limited announced the removal of Ms. Xu Honghong ("Ms. Xu") as the non-executive Director of the Company. Ms. Xu expressed her disagreement with the Board in relation to the Removal and alleged that the Removal was actually due to her disapproval of the Subscription. While the Board respects and values the importance of independent judgment and diverse opinions from the Directors, the Board reiterates that the allegations made by Ms. Xu were unfounded and unsubstantiated.

Ms. Xu was removed from the Board mainly due to the reason that during her term as a non-executive Director Ms. Xu repeatedly failed to review the relevant documents before various Board meetings, exhibited the lack of knowledge over the issues to be discussed at such Board meetings and constantly neglected the relevant documents sent to her work email which resulted in unnecessary delays for the work and process of the Board. The Board meeting to discuss the Subscription was no exception. During the Board meeting in relation to the Subscription, Ms. Xu claimed that she was not aware of the proposal concerning the Subscription and requested a deferral of her vote until after the Board meeting, although the notice and relevant documents had been circulated to her work email in accordance with the Articles of Association.

Her vote against the Subscription was made after the formal proceedings of the Board meeting had concluded. Based on the foregoing, the Board is of the view that Ms. Xu failed to fulfil her duties as a Director and the Removal is in the best interests of the Company and its shareholders as a whole.