Shandong Fengxiang : ANNOUNCEMENT (1) ADOPTION OF CHINA ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES; (2) PROPOSED AMENDMENTS TO THE ARTICLES OF ASSOCIATION; AND (3) PROPOSED CHANGE OF OVERSEAS AUDITOR

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)

ANNOUNCEMENT

1. ADOPTION OF CHINA ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES;
2. 1. PROPOSED AMENDMENTS TO THE ARTICLES OF ASSOCIATION;
      AND
   2. PROPOSED CHANGE OF OVERSEAS AUDITOR

ADOPTION OF CHINA ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES

Since the date on which the H shares of Shandong Fengxiang Co., Ltd. (the "Company") became listed on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"), the Company has been preparing its financial statements under both the China Accounting Standards for Business Enterprises ("CASBE") and the International Financial Reporting Standards ("IFRSs").

According to the "Consultation Conclusions on Acceptance of Mainland Accounting and

Auditing Standards and Mainland Audit Firms for Mainland Incorporated Companies Listed in Hong Kong" (《有關接受在香港上市的內地註冊成立公司採用內地的會計及審計 準則以及聘用內地會計師事務所的諮詢總結》) published by the Stock Exchange in

December 2010, Mainland incorporated issuers listed in Hong Kong are allowed to prepare their financial statements in accordance with CASBE and Mainland audit firms approved by the Ministry of Finance (the "MOF") of the People's Republic of China (the "PRC") and the China Securities Regulatory Commission (the "CSRC") are allowed to adopt the China Standards on Auditing in providing services to the issuers.

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In view of the aforesaid arrangement and in order to facilitate the application process of the proposed issue of the A shares of the Company, and to align the financial information disclosure of the Company in both markets, the board of directors of the Company (the "Board") considered and approved a resolution on 19 April 2021 in relation to the change of its basis for preparation of the overseas financial statements from IFRSs to CASBE, subject to the approval of the shareholders of the Company (the "Shareholders") at the upcoming annual general meeting (the "AGM") on the proposed amendments to the articles of association of the Company (the "Articles of Association").

Subject to the approval of the Shareholders of the proposed amendments to the Articles of Association, the results of the Company for the year ending 31 December 2021 are expected to be prepared in accordance with CASBE. The Board is of the view that the adoption of CASBE will enhance efficiency and reduce disclosure costs and is in the interests of the Company and its Shareholders as a whole.

As confirmed by BDO China SHU LUN PAN Certified Public Accountants LLP ("BDO China"), the preparation of all of the Company's financial statements in accordance with the CASBE will not have a significant impact on the financial position, operating results and cash flows of the Company in 2021 and in the future.

PROPOSED AMENDMENTS TO THE ARTICLES OF ASSOCIATION

In view of the adoption of CASBE, the Board considered and approved a resolution in relation to the proposed amendments to the Articles of Association on 19 April 2021. Details of the proposed amendments to the Articles of Association are set out in the Appendix to this announcement.

The proposed amendments to the Articles of Association are subject to the approval of the Shareholders at the AGM. Save for the proposed amendments to the Articles of Association, other provisions of the Articles of Association will remain unchanged. The proposed amendments to the Articles of Association will become effective upon the approval by the Shareholders at the AGM.

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PROPOSED CHANGE OF OVERSEAS AUDITOR

BDO Limited currently acts as the Company's overseas auditor which is responsible for auditing the financial statements of the Company prepared in accordance with IFRSs. In view of the above change to the standards in the preparation of the Company's overseas financial statements, the Board also proposed to change the Company's overseas auditor from BDO Limited to BDO China, subject to the approval of the Shareholders at the AGM.

BDO China is a certified public accountant firm approved by the MOF and the CSRC and is qualified to adopt the China Standards on Auditing in providing auditing services to the issuers incorporated in the Mainland and listed in Hong Kong. BDO China currently acts as domestic auditor of the Company. Subject to the approval of the Shareholders at the AGM on the proposed change of the overseas auditor, BDO China will become the only auditor auditing the financial statements of the Company in accordance with CASBE, and undertake the role of overseas auditor in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

BDO Limited confirms that there is no circumstance relating to the proposed change of overseas auditor that needed to be brought to the attention of the Shareholders. The Board is not aware of any issues relating to the proposed change of overseas auditor that needed to be brought to the attention of the Shareholders. The Board and the audit committee of the Company confirm that there is no disagreement between the Company and BDO Limited in relation to the proposed change of overseas auditor.

A circular containing details of, among other things, the proposed amendments to the Articles of Association and the proposed change of overseas auditor will be despatched to the Shareholders in due course.

By order of the Board

Shandong Fengxiang Co., Ltd.

Liu Zhiguang

Chairman

Shandong, the PRC

19 April 2021

As at the date of this announcement, the Board comprises Mr. Liu Zhiguang, Mr. Xiao Dongsheng and Mr. Wang Jinsheng as executive directors, Mr. Liu Xuejing, Mr. Zhang Chuanli and Mr. Ow Weng Cheong 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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APPENDIX - PROPOSED AMENDMENTS TO THE ARTICLES OF ASSOCIATION

The Articles of Association are written in Chinese. The English version is an unofficial translation of its Chinese version and is for reference only. In case of any discrepancies, the Chinese version shall prevail.

The proposed amendments to the Articles of Association are set out below:

Provisions of current Articles of	Provisions of amended Articles of
Association	Association
Article 153	Article 153
The fiscal year of the Company is	The fiscal year of the Company is
Gregorian calendar year, i.e. from 1 January	Gregorian calendar year, i.e. from 1 January
to 31 December every year.	to 31 December every year.
At the end of each fiscal year, the Company	At the end of each fiscal year, the Company
shall prepare a financial report which shall	shall prepare a financial report which shall
be audited and verified according to law.	be audited and verified according to law.
The financial statements of the Company	The financial statements of the Company
shall be prepared in accordance with	shall be prepared in accordance with not
not only PRC accounting standards and	only PRC accounting standardsChina
regulations, but also the international	Accounting Standards for Business
accounting standards or the accounting	Enterprises and the requirements of
standards of the overseas listing place.	applicable lawsand regulations, but also the
If there are any material differences	international accounting standards or the
between the financial statements prepared	accounting standards of the overseas listing
in accordance with the two accounting	place. If there are any material differences
standards, such differences shall be stated	between the financial statements prepared
in the notes to the financial statements.	in accordance with the two accounting
	standards, such differences shall be stated
The Company shall distribute the after-tax	in the notes to the financial statements.
profit of the relevant fiscal year as per the
less of the after-tax profits in the aforesaid	The Company shall distribute the after-tax
two financial reports.	profit of the relevant fiscal year as per the
	less of the after-tax profits in the aforesaid
	two financial reports.

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Provisions of current Articles of	Provisions of amended Articles of
Association	Association
Article 157	Article 157
The Company shall publish its financial	The Company shall publish its financial
reports twice every fiscal year. The interim	reports twice every fiscal year. The interim
financial report shall be published within 60	financial report shall be published within 60
days after the first 6 months of each fiscal	days after the first 6 months of each fiscal
year and the annual financial report shall be	year and the annual financial report shall be
published within 120 days after each fiscal	published within 120 days after each fiscal
year.	year.
The interim results or financial data	The interim results or financial data
announced or disclosed by the Company	announced or disclosed by the Company
shall be prepared in accordance with the	shall be prepared in accordance with
PRC accounting standards and regulations	the PRC accounting standardsChina
as well as the international accounting	Accounting Standards for Business
standards or the accounting standards of the	Enterprises and the requirements of
overseas listing place.	applicable lawsand regulations	as well as
	the international accounting standards or the
	accounting standards of the overseas listing
	place.

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