Shenzhou International Group Holdings Limited announced that according to the announcement issued on 15 January 2022 by the Leadership Group on Prevention and Control of the Novel Coronavirus Pneumonia Epidemic in Beilun District,Ningbo City, effective from 20:00, 15 January 2022, the Level II outbreak response to public health emergencies in Beilun District has been lifted and changed to normal epidemic prevention and control, at the same time, the temporary closed-off management measures for the lockdown and control zones were lifted, and the entire area of Beilun District was adjusted to a low-risk area of the epidemic. All of the Group's factories in Beilun District, Ningbo City can resume production in an orderly manner from 16 January 2022. It is estimated that during the production suspension, the loss of the garment production capacity of the Ningbo factories accounted for approximately 2% of the normal annual production capacity of the Group.

The board of directors of the Company is of the view that the suspension has no significant impact on the overall operations and financial position of the Group. Going forward, the Group will make various efforts, including but not limited to promoting and encouraging employees to stay put during the Chinese New Year and redistributing orders across the Group's production lines at different locations in order to minimize the impact on customer orders due to the suspension. The Board would like to thank government organizations at all levels for their efficient measures in response to the epidemic and the dedication of front-line anti-epidemic workers, and to thank all the employees of the Group for their high level of cooperation and strong cohesion demonstrated during the epidemic, which enabled the epidemic in Beilun District to be resolved within a relatively short period of time.