Dear Valued Stakeholders,

Recently,the U.S. Department of Homeland Security (DHS) updated the Uyghur Forced Labor Prevention Act entity list with three entities, including Xinjiang Zhongtai Group Co. Ltd.,Xinjiang Tianshan Wool Textile Co. Ltd., and Xinjiang Tianmian Foundation Textile Co.

As there have been concerns regarding Xinjiang Tianmian Foundation Textile Co. being a Texhong subsidiary in the past, we would like to make a clarification.

In 2021,Texhong fully divested Xinjiang Tianmian Foundation Textile , out of consideration for the market conditions at the time. As Texhong is a publicly traded company on the Hong Kong Stock Exchange, the terms of the divestment agreement are publicly available and were disclosed on September 27,2021 and November 5,2021 at the Exchange's website here: Listed Company Information Title Search (hkexnews.hk) hk), as well as our company website via a news release, titled “Texhong Has Sold its Xinjiang Factory”, which is archived under Group News:http://www.texhong.com/en/news/54 Texhong Has Sold Its Xinjiang Factory .This fact is also noted on p.76 of the company's 2021 Annual Report.

We welcome the opportunity to engage directly and provide you with additional information if you have any other concerns.