Kairun Holdings: Wholly-owned subsidiary and related parties jointly invest 16 million yuan to establish a holding subsidiary.

Kairun Corporation announced that its wholly owned subsidiary Korrun Holdings Limited plans to jointly invest with affiliate LIL Holdings Limited in establishing a holding subsidiary company, Axiom Holdings Limited, in the Cayman Islands. The former plans to contribute $1.4382 million and subscribe for 5 million shares, accounting for 50%; the latter plans to contribute $862,900 and subscribe for 3 million shares, accounting for 30%; and 20% of the shares will be reserved for an employee stock option pool. This company will be one of the main entities investing in overseas brand management operations, and this transaction does not constitute a major asset restructuring and does not require shareholder approval.