1. In the annual report of 214, the Chinese sports industry showed a decline in net profit, which is a bad signal for investors. In the annual report of China Sports Industry (stock code 6158), the company achieved a net profit of 13 million yuan in 214, down 24.35% year-on-year; Earnings per share is about .12 yuan. The company plans to distribute .38 yuan (including tax) in cash for every 1 shares. Last year, the operating income of the Chinese sports industry increased by 16.92% year-on-year to 1.152 billion yuan, which was related to sports and real estate.

2. China Sports Industry Group Co., Ltd. (hereinafter referred to as "the company" or "the company") is approved by the State Commission for Economic Restructuring [1997] No.153, and is sponsored by the Sports Fund Management Center of the State Sports General Administration (formerly the State Sports Commission), Shenyang Real Estate Industry Co., Ltd., the All-China Sports Foundation, the Sports Lottery Management Center of the State Sports General Administration and the Sports Equipment Center of the State Sports General Administration. Our company was registered in Tianjin in March 1998 and obtained the business license of enterprise as a legal person (registration number: 112918).