Kasen International Holdings Limited announces that, Mr. Zhu Ruijun has tendered his resignation as the chief executive officer of the Company (the "CEO") with effect from 7 October 2022 in pursuit of his personal commitments. Mr. Zhu Ruijun has confirmed that he has no disagreement with the Board, and there are no matters that need to be brought to the attention of the shareholders of the Company or the Stock Exchange in relation to his resignations. The Board further announces that, following the resignation of Mr. Zhu Ruijun as the CEO, Mr. Zhu Zhangjin, who is currently the chairman of the Board and an executive Director, has been appointed as the CEO with effect from 7 October 2022. Pursuant to the Code Provision C.2.1 in the Corporate Governance Code as set out in the Part 2 of Appendix 14 of the Listing Rules which provides, among other matters, that the roles of the chairman and the chief executive officer should be separate and should not be performed by the same individual. Following the appointment of Mr. Zhu Zhangjin as the CEO, Mr. Zhu Zhangjin will assume both the role as the chairman and chief executive officer of the Company responsible for overseeing the operations of the Group. Despite of the deviation from the Code Provision C.2.1, Mr. Zhu Zhangjin will provide solid and continuous leadership to the Group with his extensive experience and knowledge in management and maintain the continuous operation of business of the Group. Moreover, under the supervision of other existing members of the Board including the independent non-executive Directors, the Board is appropriately structured with balance of power to provide sufficient checks to protect the interest of the Company and its shareholders. As such, the Board considers that the deviation from Code Provision C.2.1 is appropriate in the current situation. The Company is still considering appointing a new chief executive officer to replace Mr. Zhu Zhangjin in order to re-comply with Code Provision C.2.1, if a candidate with suitable leadership, knowledge, skills and experience can be identified within or outside the Group. However, due to the nature and extent of the Group 's operations, in particular in China (the "PRC") and the in-depth knowledge and experience in
the main businesses of the Group and the development direction of new businesses in the futurerequired for the position of chief executive officer, the Company is unable to determine as to when the appointment of a new chief executive officer for the Company can be effected. The Board will keep this matter under review. The biographical details of Mr. Zhu Zhangjin are set out below: Mr. Zhu Zhangjin, Kasen aged 56, is the founder of the Group. Mr. Zhu Zhangjin is also an executive Director and chairman of the Board. He was the chief executive officer of the Company from 2005 till February 28, 2020, whereupon he resigned and stepped down from the position as the chief executive officer of the Company with effect thereon. Before founding the Group in 1995, Mr. Zhu Zhangjin was involved in several business ventures in the areas of textile, leather processing, garment, trading, etc. With over 34 years of experience in the leather manufacturing industry, Mr. Zhu Zhangjin has extensive knowledge in the upholstered furniture industry in the PRC and has been a successful entrepreneur in leather manufacturing related businesses. Mr. Zhu Zhangjin is also the vice chairman of the China Leather Association. In recognition of his contribution to promote the development of the leather manufacturing industry, Mr. Zhu Zhangjin was awarded the "Top Ten Businessmen in Zhejiang" in 2004. In 2006, Mr. Zhu Zhangjin was one of the 10 recipients of the prestigious "National May 4th Youth Award. In 2007, Mr. Zhu Zhangjin received the National May Day Award. Mr. Zhu Zhangjin entered into a service contract as an executive Director on 26 September 2020 with the Company for a term of three years from 26 September 2020. The emolument of Mr. Zhu Zhangjin comprises an annual remuneration of HKD 750,000, which was determined by the Board based on the recommendation from remuneration committee of the Company with reference to his experience, duties and responsibilities with the Company and the Company's remuneration policy and does not include any bonus payments. He is subject to retirement by rotation and re-election at the annual general meeting of the Company in accordance with the articles of association of the Company. Mr. Zhu Zhangjin will not receive emolument for the appointment as the CEO.