Reference is made to the Company’s announcement made on 10 January 2019 (“Announcement”). Unless otherwise stated, the terms used herein shall have the same meaning as defined in the Announcement.

The Company wishes to announce that the Company has appointed an independent law firm in China, namely Messrs. Fujian Shilong Law Firm (福建世隆律师事务所) to undertake a thorough review of the Litigation Matters involving HongPeng Footwear and the law firm has confirmed that all the Litigation Matters have been completed and settled, and all the Litigation Matters are now closed.

The Board wishes to inform and confirm as follows:

(a)           In respect of the Litigation Matters for items 3-5 as prescribed （2018）闽05民初175号之一，（2018）闽05民初219号之一，（2018）闽05民初221号之一, Yinfa (Fujian) Investment Co., Ltd. (银发（福建）投资有限公司), being one of the defendants of the Litigation Matters instituted by the Bank, had entered into separate settlement with the Bank. As such, the Bank has withdrawn the claim solely against Yinfa (Fujian) Investment Co., Ltd. (银发（福建）投资有限公司).

(b)           In respect of the Litigation Matters for items 3-5 against HongPeng Footwear, as one of the defendants of the Litigation Matters instituted by the Bank, the Bank has, on 17 May 2018, entered into mediation with amongst others, Jinjiang Dasen and HongPeng Footwear for Jinjiang Dasen to repay and settle the outstanding loan by 18 November 2018. As such, a withdrawal of the claim is not applicable for HongPeng Footwear who has entered into the Civil Mediation Letter with the Bank.

(c)           The Bank has on 10 January 2019 issued a confirmation statement confirming that Jinjiang Dasen has repaid in full the outstanding loans to the Bank in November 2018 and the guarantee provided by HongPeng Footwear has been deemed cancelled.

Please refer to the updated status set out herein in respect of items 3-5 of the Litigation Matters referred to in Schedule of the Announcement.

The Fujian Shilong Law Firm  has further confirmed, based on confirmation provided by the Bank, that the corporate guarantee provided by HongPeng Footwear has been cancelled in November 2018.

This announcement is dated 17 January 2019.