Namchow Food Group (Shanghai) Co., Ltd. has proposed to establish a subsidiary, Chongqing Namchow Co. (tentative), in Chongqing Municipal, serving as the production base for the manufacturing of processing workshops, R&D workshops, facility rooms, and other production equipment for whipped cream and frozen dough in Western China and Southeast Asia markets. Projected monetary amount of the investment: About RMB 480 million.

Projected date of the investment: The project has 2 phases: Phase 1: Approximately RMB 340 million; Construction begins within 3 months from land handover; Construction will be completed and put into operation within 24 months from the construction commencement date. Phase 2: Approximately RMB 140 million; Construction begins within 24 months from the operation commencement date in phase 1; Construction will be completed and put into operation within 18 months from the construction commencement date. Source of capital funds: Self-owned and self-raised capital.

Specific purpose: It is for the purpose of the promotion of operation strategy in Western China and Southeast Asia markets, the meeting of the Company's business development needs for operating sites, the realization of local production and local supply, and the continued enhancement of the Company's operating capability. Any other matters that need to be specified: If the actual investment amount in the future reaches the threshold required to be announced, which is stipulated by relevant laws and regulations, it will be disclosed on the Market Observation Post System (MOPS).