Note: 1. On November 26, 2018, the third extraordinary general meeting of shareholders in 2018 held by Guizhou Hongxing Development Co., Ltd. (hereinafter referred to as Hongxing Development) reviewed and approved the acquisition of the Qingdao shares held by Qingdao Hongxing Chemical Group Co., Ltd. The proposal on matters related to the 75% equity of Hongdie New Materials Co., Ltd., the above incentive objects will come into effect when the industrial and commercial change registration is completed. 2. Meng Fanzhen served a written "Resignation Letter" to Hongxing Development on November 20, 2018. Due to work reasons, Meng Fanzhen applied for his resignation as a supervisor of the seventh supervisory committee and chairman of the seventh supervisory committee of Red Star Development. Red Star Development will hold the fourth extraordinary general meeting on December 12, 2018 to elect a new supervisor. Meng Fanzhen will take effect as an incentive object after the new supervisor takes office.