The Chairman informed the Meeting concerning merge together of three companies that Zhejiang Saha-Union Feilun Thread Industries Co., Ltd. which the Company invested HKD 9.36 million or 30% of total shares, will be the principle company merging with Saha-Union Spinning Mill No. 7 Co., Ltd. and Shanghai Saha-Union Thread Industry Co., Ltd. After the merger, the value of the business was assessed at USD 22.78 million, the capital contribution and equity portion by each shareholder will be changed as following: