China South City Holdings Limited announced that Shenzhen China South City Investment Co., Ltd. and eight supply chain companies or their subsidiaries (including Shenzhen Easttop Supply Chain Management Co.,Ltd., Shenzhen Feima International Supply Chain Co., Ltd., Shenzhen China Brilliant Investment Holding Co., Ltd., Shenzhen Prolto Supply Chain Management Co., Ltd., Zhuhai Tempus Jin Yue Investment Co., Ltd., Eternal Asia Supply Chain Management Ltd. and Shenzhen YH Global Supply Chain Co., Ltd.) have entered into a Shareholders Agreement in relation to a supply chain big data joint venture company on 26 April 2018. Pursuant to the Shareholders Agreement, each party intended to contribute RMB 11.11 million with an aggregated total investment of RMB 100 million to form a joint venture company, each party shall hold 11.111% of the equity interest in the joint venture company. The formation of the big data joint venture company with eight supply chain companies in China which is aimed to set up an influential supply chain big data platform in China through the innovative technology such as big data and artificial intelligence.

Leveraging the shareholders' extensive operation experience in application scenarios and in the supply chain industry, the cooperation is committed to build an open and win-win platform, as well as to promote an effective and synergetic modern supply chain system. Meanwhile, the cooperation also aimed to build an innovative smart supply chain, improve the efficiency of integrated logistics service and to serve the real economy, so as to enhance the competitiveness of Chinese enterprises in the global supply chain industry. The investment will strengthen the group's supply chain service capabilities and enhance the group's ability to provide more and better services to its customers.

This investment has a positive impact on the long-term development of the group and is in the interest of the group and its shareholders as a whole.