Chairman’s Statement

Dear Shareholders,

I hereby report to you the operating conditions of 夏夏与乡下的爷爷 - 在线免费完整版~高清片 (the “Company”) and its subsidiaries (together, the “Group”) for the year ended 31 December 夏夏与乡下的爷爷.

Highlights

For the Current Year, revenue was approximately RMB1,641.2 million, representing a decrease of approximately RMB1,871.2 million, or approximately 53.3%, compared to revenue of approximately RMB3,512.4 million for the year ended 31 December 2021 (the “Last Year”). The overall decrease in revenue was mainly due to the decrease in revenue generated from Trading and Logistics. During the first half of the Current Year, the PRC Government continued to implement Zero-Covid Policy therefore, majorities of key cities (including Shanghai where our Trading and Logistics business operated in) were suffering strict lockdown which caused uncertain macroeconomic environment, poor consumption appetite and disruption in supply chain in the PRC. The decrease in revenue was also due to the decrease in Property Development and Investment. During the Last Year, the PRC Government implemented several policies to cool down the overheating in the property market. As a result, property market suffered and people began to lose confident on property market. This resulted the decrease in revenue for the Property Development and Investment business.

Prospects

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 property assets, taking cost-saving measures and restructuring the loss making business. At the same time, we shall keep enhancing our ability in management and operation and retain prudent financial strategy and seeking for new financing to improve liquidity and capital structure.

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!

Yan Ruijie

Chief Executive Officer

Hong Kong, 31 March 2023