China ZhengTong Auto Services Holdings Limited announced that the board convened a meeting on 7 January 2022, to discuss and approve, among other things, the establishment of an independent board committee (the ‘Independent Board Committee') comprising executive Directors who were not Directors at the relevant time (they are Mr. WANG Mingcheng, Mr. LI Zhihuang and Mr. ZENG Tingyi) to conduct an investigation into the Relevant Matters. The Company received a notice from Mr. WANG on 9 January 2022, stating that he had no connection with the Relevant Matters and had never been involved in any violation of laws and regulations, but as he felt that he might not have the trust of the Directors who attended the Meeting, and considering his age, he has decided to resign as an executive Director and a member of the remuneration committee of the Company from 10 January 2022. Following the resignation of Mr. WANG, the Company does not meet the requirement under paragraph 2.1 of the terms of reference of the remuneration committee of the Company, namely, that the remuneration committee shall consist of not less than three members.

The Company will identify and appoint a suitable candidate as soon as practicable to fill the vacancy. The Company will make further announcement(s) as and when appropriate.