1.Date of occurrence of the event:2020/06/20

2.Company name:Snowdown Merchandise (SuZhou) Co.,Ltd

3.Relationship to the Company (please enter ”head office” or ”subsidiaries”):subsidiaries

4.Reciprocal shareholding ratios:100% owned subsidiaries of the company

5.Cause of occurrence:Snowdown Merchandise (SuZhou) Co.,Ltd will spin off and set up a new company.

6.Countermeasures:

In order to enhance market competitiveness and overall operation performance,adjust the investment structure in mainland China.

Snowdown Merchandise (SuZhou) Co.,Ltd is planned to split into Snowdown Merchandise (SuZhou) Co.,Ltd and the new founded company Kung Lung (SuZhou) Co.,Ltd.@Snowdown Merchandise (SuZhou) Co.,Ltd will transfer the operation business of approximately RMB 35,000,000 (US$ 5,000,000) (including assets and liabilities) as the capital of Kung Lung (SuZhou) Co.,Ltd.Kung Lung (SuZhou) Co.,Ltd. issued new shares to Kwong Lung Feather (BVI) Ltd.as consideration, and Snowdown Merchandise (SuZhou) Co.,Ltd handled a capital reduction.

After spin-off, Snowdown Merchandise (SuZhou) Co.,Ltd. and Kung Lung (SuZhou) Co.,Ltd. are the subsidiaries of Kwong Lung Feather (BVI) Ltd. which the Company has shareholding of 100%. The Company's shareholders' equity will not be affected.

7.Any other matters that need to be specified:None