The board of directors of C&D International Investment Group Limited was informed that Xiamen C&D Inc. recently received the Decision on the Issuance of Warning Letter to Xiamen C&D Inc. issued by the Xiamen Regulatory Bureau of the China Securities Regulatory Commission (the ``Xiamen Regulatory Bureau''), pursuant to which Xiamen C&D was in breach of the relevant requirements of the Administrative Measures for the Disclosure of Information of Listed Companies Mr. Zheng Yongda (``Mr. Zheng''), a non-executive director of the Company and the chairman of Xiamen C&D, failed to fulfill his diligent and fiduciary duties in accordance with the Administrative Measures for the Disclosure of Information of Listed Companies Xiamen. Regulatory Bureau decided to take administrative regulatory measures against Mr. Zheng by imposing the Decision on Regulatory Interview which will be, recorded in the integrity file of the securities and futures market. To the knowledge and information of the Company, the Company is of the view that the above matters will not have any significant impact on the business and/or operation of the Group.

The Company considers that Mr. Zheng remains suitable to serve as a non-executive director of the Company.