Federal Corporation announced that due to the impact of high anti-dumping tariffs imposed by the United States on company and the suspension of production at Guanyin Factory, in order to maintain the source of goods and revenue of company, company had signed a contract with XT TYRE in Vietnam to produce large-sized tires in the initial stage mainly selling in North America, but due to DOT not yet approved by the US Department of Transportation and the progress of equipment installation at the Vietnam factory, plan to find another OEM factory to respond in parallel. Considering the diversified development of the products, timeliness, sales order growth, and ensuring the stable supply of tires for a long term in the future, the company planned to appoint NANKANG RUBBER TIRE CORP.,LTD. for OEM production, different from the Vietnam factory's OEM product line and market arrangements, the initial OEM products are mainly sold in non North American regions with PCR tires to stable the source of goods and maintain the normal sales.