The board of directors of Ascent International Holdings Limited announced that there is news on the Internet that a P2P lending company in the mainland China, for which Mr. Xu and Mr. Huang were core founding members, defaulted on its debts and is being investigated by Shenzhen Public Security Bureau for suspected fund raising fraud. The Board has resolved to suspend the duties of Mr. Xu Hongwei and Mr. Huang as executive Directors with immediate effect on 16 July 2018 pending the investigation by the company.