Reference is made to the announcements of China Harmony Auto Holding Limited (the Company) dated 12 November 2020, 13 November 2020 and 16 November 2020 in relation to a report published by Bonitas Research LLC on 12 November 2020 containing certain allegations against the Group. Based on the Company's internal investigation so far, the Company is not aware of any thing in relation to the Report that needs to be brought to the attention of the shareholders of the Company. In order to provide shareholders and potential investors of the Company with an independent review concerning the matters as alleged in the Report, the board of directors of the Company resolved to establish an independent board committee to (i) retain independent third party professional institutions to assist the review on the matters as alleged in the Report if it considers necessary or appropriate; (ii) report to the Board on its findings; and (iii) make recommendations to the Board on appropriate actions to be taken, if any. The Company will update its shareholders and potential investors the results of the said review as and when appropriate. The Independent Board Committee is comprised of all independent non-executive directors of the Company, namely Mr. Wang Nengguang, Mr. Lau Kwok Fan and Mr. Chan Ying Lung, and is chaired by Mr. Wang Nengguang. The Independent Board Committee is authorized to retain independent third party professional institutions, and Michael Li & Co has been retained as the Independent Board Committee's independent outside counsel.