On September 30, 2019, China VTV Limited (the Company"), Constellation Moshan Film and Television Media Company Limited, (Constellation"), and Mr. Xiao Du, a shareholder of Constellation, entered into a binding memorandum of understanding of share exchange and merger. The parties intend to close the transaction contemplated under the Binding MOU on or before December 31, 2019. Upon completion of the Transactions, the Company shall elect Mr. Xiao Du to the board of directors of the Company.