Elected Just 4 Months Ago, Chuangyuan Co., Ltd. Chairman Chen Gang Detained by Relevant Supervisory Authorities

On the evening of March 13, Chuangyuan Co., Ltd. (300703.SZ) announced that it recently received notice from its controlling shareholder, Ningbo Cultural Tourism Exhibition Group Co., Ltd., that the company’s Chairman, Chen Gang, has been detained by relevant supervisory authorities.

Chuangyuan Co. stated that to ensure the smooth operation of the company’s board of directors and the ongoing management activities, and to protect the legal rights of the company and all shareholders, in accordance with the relevant provisions of the Articles of Association, the company held the 14th meeting of the 4th Board of Directors on March 13, 2026, during which it approved the proposal to nominate and authorize a director to act on behalf of the chairman.

After consultation and unanimous agreement by more than half of the company’s directors, the company nominated Director Hua Tian to perform all duties of the chairman and Chen Gang’s responsibilities on the company’s board committees. The acting duties will last from the date of approval by this board meeting until Chen Gang resumes his duties or the company elects new personnel to fill the relevant positions.

As of now, the company’s control has not changed, and other directors and senior management are performing their duties normally. Daily operations and management are handled by senior management, and the board of directors is fulfilling its responsibilities according to law. The company’s various production and business activities are proceeding normally.

Chuangyuan Co. stated that as of the date of this announcement, it has not received any investigation or cooperation documents from authorities regarding the company, and the progress and conclusions of the detention investigation are unknown. The company will continue to monitor the developments of this matter.

It is worth noting that Chen Gang was elected as the company’s chairman in November 2025.

On November 14, 2025, Chuangyuan Co. announced that the board elected Chen Gang as chairman and non-independent director, and also appointed him as the chairman of the Strategy and ESG Committee.

According to available information, Chen Gang was born in November 1973, is a Chinese national, a senior economist, a high-level talent in Ningbo, and holds a master’s degree. He has served as Director (Head of Policy and Regulations) at the Ningbo Tourism Bureau Office, Deputy Director and Party Committee Member of the Ningbo Tourism Bureau, and in September 2017, he became Deputy Party Secretary, Vice Chairman, and General Manager of Ningbo Tourism Investment Development Co., Ltd. In December 2018, he was appointed Party Secretary and Chairman. In June 2020, he became Party Secretary and Chairman of Ningbo Cultural Tourism Investment Group Co., Ltd., and in June 2023, he was appointed Party Secretary and Chairman of Ningbo Cultural Tourism Exhibition Group Co., Ltd. He also serves as Vice President of Zhejiang Tourism Association and EMBA mentor at Zhejiang University.

Founded in 2001, Chuangyuan Co. operates across the entire supply chain of R&D, design, manufacturing, and sales, focusing on three main areas: cultural and educational leisure, sports fitness, and home living.

According to the company’s Q3 2025 report, in the first three quarters of 2025, the company achieved operating revenue of 1.602 billion yuan, a year-on-year increase of 15.63%; net profit attributable to shareholders of 79.65 million yuan, up 33.44%; net profit after non-recurring gains and losses of 75.48 million yuan, up 34.46%; gross profit margin of 34.13%, an increase of 3.55 percentage points year-on-year; net profit margin of 6.17%, up 0.84 percentage points; net cash flow from operating activities of 84.95 million yuan, an increase of 479.36%; and an asset-liability ratio of 50.61%.