CNC Holdings Limited announced that subsequent to the despatch of the Circular and the AGM Notice, the board of directors of the Company has received a notice from Mr. Fan on 10 August 2020 informing the Board that he decided to retire and will not offer himself for re-election as an independent non-executive Director at the AGM and accordingly will retire as Director at the conclusion of the AGM due to his other business commitments which require more of his attention and dedication. Following the retirement of Mr. Fan which will take effect from the conclusion of the AGM held on 11 August 2020, (i) there will be a vacancy for chairman of the Risk Management Committee as required under the terms of reference of the Risk Management Committee; and (ii) the Nomination Committee comprises three executive Directors and three independent non-executive Directors and accordingly, the Company no longer fulfils the requirement of establishing a nomination committee comprising a majority of independent non-executive directors under Paragraph A.5.1 of the Code on Corporate Governance Practices as set out in Appendix 15 to the Rules Governing the Listing of Securities on the GEM of The Stock Exchange of Hong Kong Limited. As such, the Company will actively look for a suitable candidate to fill the vacancy as soon as practicable, and with the relevant appointment to be made within three months from 11 August 2020, and will make further announcement(s) as and when appropriate.