Dear Shareholders,

I hereby report to you the operating conditions of China Huajun Group Limited (the “Company”) and its subsidiaries (together, the “Group”) for the year ended 31 December 2024.

Highlights

For the Current Year, revenue was approximately RMB1,154.9 million, which represented a decrease of approximately RMB1,689.9 million, or 59.4% when compared to revenue of approximately RMB2,844.8 million for the year ended 31 December 2023 (the “Last Year”). The overall decrease in revenue was attributable to the decrease in revenue generated from our Property Development and Investments segment. During the Last Year, one of the project of Baohua Properties Development (Shanghai) Co., Ltd (“Baohua Shanghai”) which was pledged to secure a loan were enforced to judicial auction and the entire project was sold for a consideration of approximately RMB2,170.0 million and resulted in one off revenue of RMB1,299.3 million was recognised in the Last Year and no such revenue recognised during the Current Year. The Group did not invest or acquire new property projects during the Current Year and the Group’s primarily focus is to dispose of property assets for repayment of debt. Meanwhile, Trading and Logistics segment and Printing segment continue contribute majority revenue of the
Group of approximately RMB766.1 million (the Last Year: approximately RMB856.8 million) and approximately RMB319.6 million (Last Year: approximately RMB376.5 million). Decrease in revenue of our Trading and Logistics
segment was due to restructuring in product mix to concentrate resources on trading of petrochemical products with higher profit margin under tighter working capital resources. Decrease in revenue of printing business was due to challenging business environment and competition and strict inventory control implemented by certain major customers who deferred orders for our printing products.

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 with increasing trade barriers, the economic situation in
the Mainland China and globally are 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 customers with the quality services. In the coming year, we shall continue to reduce the gearing ratio, accelerate disposal and sale of property assets, taking cost-saving
measures and restructuring the loss making business. At the same time, we shall devote management’s effort and resources to explore new financing opportunities and implement the offshore debts restructuring so as to maintain the Company and its business for the benefits of all shareholders, employees and other stakeholders as a whole.

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

Chairman and Chief Executive Officer

Hong Kong, 31 March 2025