FDG Kinetic Limited announced had come to the attention of the Board that FDG has commenced legal proceedings against, among others, Mr. Cao Zhong the chairman and an executive director of the company in relation to certain wrongdoings in relation to the placing of 280,000,000 shares of FDG by FDG in October 2019. As such, the Board has resolved on 19 March 2020 to suspend the duties of Mr. Cao as the chairman and executive director of the Company with immediate effect. Due to the suspension of Mr. Cao's duties as the chairman and executive director of the company, the Board has resolved on 19 March 2020 to appoint Professor Sit Fung Shuen Victor as the chairman of the company with immediate effect. Professor Sit, aged 72, was appointed as an independent non-executive director of the Company on 1 July 2008. He is a member of each of the Audit Committee, the Nomination Committee, the Remuneration Committee and the Risk Committee of the company. Professor Sit is currently an advisor to City Planning Commission of Shenzhen Municipal Government of the PRC (since 1988) and an advisor to City Planning Commission of Sanmin Municipal Government of Fujian Province of the PRC (since 1991).