ST Modern: Intends to transfer the equity of three subsidiaries to Shidan Trading without compensation.

ST Modern announced that in order to optimize its governance system and improve operational efficiency, the company plans to internally consolidate the equity of its subsidiary companies. The wholly-owned subsidiary, E-commerce and Canyon International, will transfer its 90% stake in the subsidiary Shan Nan Trading to the wholly-owned subsidiary, Lion's Dan Trading, free of charge. Since Lion's Dan Trading originally held a 10% stake in Shan Nan Trading, after the consolidation, these three companies will become wholly-owned subsidiaries of Lion's Dan Trading, making it a wholly-owned subsidiary of the company. This matter has been approved by the board of directors, does not constitute a related party transaction or a major asset reorganization, and does not involve changes in the scope of consolidated financial statements.