It has come to the Company's attention that certain Hong Kong media outlets have quoted comments made by the Hong Kong Alliance of Accounting Professionals on business trip arrangements for employees amid the current COVID-19 outbreak. China South City Holdings Limited has been named as one of the companies that have not responded to the Alliance's enquiry. The Company would like to provide a clarification on the news reports as below:

1. The Company has not received enquiry from the Hong Kong Alliance of Accounting Professionals;
2. None of the employees of the Company's Hong Kong office has registered him / herself as the member of the Hong Kong Alliance of Accounting Professionals;
3. The Company has not assigned any employee of the Hong Kong office on business trips to Mainland China after Chinese New Year, or made any relevant request;
4. The health and well-being of our employees and their families are the primary concern of the Company. After Chinese New Year, any communication between Hong Kong office with counterparties in Mainland China are conducted through telephone calls, emails, or video conferences.