The Board of Qidian International Co., Ltd. announced that the Company intends to establish a wholly-owned subsidiary, in Maotai Town, Guizhou Province, the People's Republic of China (the "PRC") (such subsidiary to be established is referred to as "Guizhou Guofeng", pending on the approval from (Renhuai Market Supervision Administration Department ("Renhuai Department"))). Basic Information of Guizhou Guofeng: Guizhou Guofeng, with a registered capital of RMB 10 million, will be a direct wholly-owned subsidiary of (Beijing Qidian New Business Technology Co., Ltd), which in turn is an indirect wholly-owned subsidiary of the Company. Guizhou Guofeng intends to engage in the liquor business in the PRC, sale of packaging materials and products, sale of food, sale of food through online channels (only pre-packaged food), food import and export, sale of plastic packaging containers and tools for food, import and export of goods, wholesale and retail of pre-packaged food, pending on the approval from Renhuai Department (collectively, the "Business").

Reasons for the Establishment of Guizhou Guofeng: The Company is of the view that the Business to be carried out by Guizhou Guofeng can leverage on the retail network established by the Group and broaden the revenue stream with an aim to enhance the profitability of the Group as a whole.