1.Date of the board of directors resolution:2020/01/16

2.Reason for the capital reduction:
In order to fully use group capital, it transacts the capital reduction and returns to its parent company Hon Chuan (China) Holdings Co., Ltd., so as to reach an optimum allocation of capital.

3.Amount of the capital reduction:USD 9,000,000

4.Cancelled shares:9,000,000 shares

5.Capital reduction ratio:7.14%

6.Share capital after the capital reduction:USD 117,006,000

7.Scheduled date of the shareholders' meeting:2020/01/16

8.Estimate listed common shares after the capital reduction:N/A

9.The estimate ratio of listed shares to the company's issued common shares, after the capital reduction:N/A

10.Countermeasures of the lower circulation in shareholding, if the aforesaid estimate listed common shares does not reach 60 million shares and the ration does not reach 25% after the capital reduction:N/A

11.Any other matters that need to be specified:N/A