On May 31st 2007, Guangzhou Lonkey Industrial Co., Ltd signed “the Contract of Establishing Guangzhou Lonkey Daily Use Products Co., Ltd” with Shaoguan Lonkey Co., Ltd to jointly set up the production base of cosmetics and washing products in Guangzhou City, China. The jointly funded company has a registered capital of RMB80 million, of which RMB76 million (sharing 95%) was invested by Guangzhou Lonkey Industrial Co., Ltd. This outward investment of Lonkey Industrial Co., Ltd does not belong to connected transactions.