Shandong Fengxiang : RESIGNATION AND PROPOSED APPOINTMENT OF SHAREHOLDERS REPRESENTATIVE SUPERVISOR

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

SHANDONG FENGXIANG CO., LTD.

山 東 鳳 祥 股 份 有 限 公 司

(A joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 9977)

RESIGNATION AND PROPOSED APPOINTMENT OF SHAREHOLDERS REPRESENTATIVE SUPERVISOR

The board of directors (the "Board of Directors") of Shandong Fengxiang Co., Ltd. (the "Company", together with its subsidiaries, the "Group") announces that Mr. Kong Xiangwei ("Mr. Kong") has tendered his resignation from his position as a shareholders representative supervisor of the Company (the "Supervisor") and the chairman of the board of Supervisors (the "Board of Supervisors") with effect from 31 March 2021 due to other work commitments. Mr. Kong has confirmed that he has no disagreement with the Board of Supervisors and the Board of Directors, and there is no matter relating to his resignation that needs to be brought to the attention of the shareholders of the Company (the "Shareholders"). The Company and the Board of Supervisors would like to express sincere gratitude to Mr. Kong for his valuable contribution as a Supervisor and the chairman of the Board of Supervisors during his tenure of office.

On 31 March 2021, the Board of Supervisors resolved to propose to nominate Mr. Zhang Jun ("Mr. Zhang") as a shareholders representative Supervisor and the chairman of the Board of Supervisors, with the term of office commencing from the date on which approval is obtained at the upcoming annual general meeting of the Company until the expiry of the term of office of the fourth session of the Board of Supervisors. The proposed appointment of Mr. Zhang as a shareholders representative Supervisor is subject to the consideration and approval of the Shareholders at the upcoming annual general meeting of the Company. Mr. Kong would continue to perform his duties as the chairman of the Board of Supervisors and a shareholders representative Supervisor in accordance with the relevant provisions as set out in the Company Law of the People's Republic of China and the articles of association of the Company before the appointment of Mr. Zhang being approved by the Shareholders.

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The biographical details of Mr. Zhang are set out as follows:

Mr. Zhang Jun (張軍), aged 33, joined GMK Holdings Group Co., Ltd. (新鳳祥控股集團 有限責任公司) ("GMK Holdings"), one of the controlling Shareholders of the Company,

in March 2012, and previously served as the administrative clerk of its party committee office, the license management specialist of its chairman's office and the external liaison manager of the office of its board of directors. Mr. Zhang has been the secretary to the chairman of GMK Holdings since December 2017 and the environmental safety manager of the environmental safety and project management department under the office of the board of directors of GMK Holdings since January 2021.

Mr. Zhang completed his education specialising in computer and network management from the Shandong Advanced School of Finance (山東高級財經學校) in the People's Republic

of China in June 2007 and obtained a bachelor's degree in management (by way of distance learning) from the Shandong Agricultural University (山東農業大學) in the People's Republic of China in January 2019.

Mr. Zhang has confirmed that, save as disclosed above, (i) he neither held any directorship in any listed company other than the Company nor held any positions in the group members of the Company in the past three years; (ii) he has no relationship with any other Directors, Supervisors, senior management, substantial Shareholders or controlling Shareholders of the Company; (iii) he has no interest in the shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong); and (iv) there is no other information relating to his appointment that needs to be disclosed pursuant to Rule 13.51(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and there is no other matter that needs to be brought to the attention of the Shareholders.

Upon the proposed appointment of Mr. Zhang being approved by the Shareholders, he will enter into a service contract with the Company for a term commencing from the date of being elected at the upcoming annual general meeting until the end of the fourth session of the Board of Supervisors. Mr. Zhang will not receive any remuneration during his term of office as a shareholders representative Supervisor.

By order of the Board

Shandong Fengxiang Co., Ltd.

Liu Zhiguang

Chairman

Shandong, the PRC, 31 March 2021

As at the date of this announcement, the Board of Directors comprises Mr. Liu Zhiguang, Mr. Xiao Dongsheng, Mr. Ow Weng Cheong and Mr. Wang Jinsheng as executive Directors, Mr. Liu Xuejing and Mr. Zhang Chuanli as non-executive Directors, and Mr. Guo Tianyong, Mr. Zhang Ye and Mr. Chung Wai Man as independent non-executive Directors.

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