Public apology letter from Yabaite chairman Lu Yong

    Investors and all employees of Jiangsu Yabaite Technology Co., Ltd.:

    On December 15, 2017, Jiangsu Yabaite Technology Co., Ltd. (hereinafter referred to as "Yabaite" or the company), myself and related management personnel received the Administrative Penalty from China Securities Regulatory Commission (hereinafter referred to as "China Securities Regulatory Commission") Decision".

I sincerely accept and solemnly apologize to the majority of investors and all employees of the company for the punishment decision imposed on Yabaite and myself by the regulatory authorities! I deeply review my behavior and correct my thinking. At the same time, I firmly support the regulatory authorities to strictly control and demand listed companies so as to lay a good legal foundation for the sound development of the capital market.

    Hereby, I solemnly make the following promises:

    1. For the majority of investors who have suffered investment losses due to this incident, Yabaite and the company's management will actively discuss related "compensation" matters to effectively protect the legitimate rights and interests of all investors as required by relevant laws and regulations.

    2. After this incident, I and the company's management deeply realized that honesty is the foundation of the survival of a listed company. In terms of information disclosure, we will strengthen the awareness of lawful and compliant information disclosure for myself and the company’s management through the study of relevant laws and regulations; strengthen the study of securities laws and regulations and related normative systems, and strictly follow the requirements of laws and regulations. Standardize shareholder behavior, operate in compliance with laws and regulations, perform information disclosure obligations in a timely, truthful, accurate and complete manner, and further strengthen Yabaite's internal control system for information disclosure. In terms of company operations, integrity is the company's basic code of conduct, and it must operate in a legal, compliant, and honest manner. Resolutely prevent similar situations from happening again.

    3. I will take this as a warning, strictly abide by relevant laws and regulations, actively cooperate with relevant regulatory authorities, safeguard the interests of listed companies, and strive to create better business performance in the future to reward all shareholders, investors, and all employees of the company .

    4. I hereby promise that I will continue to improve the company’s management system, take compliance and law-abiding, operate with integrity, and contribute to society as my own responsibility, and strive to run a responsible and accountable society, to all shareholders, investors, and all employees. Listed company.

    Finally, I would like to express my heartfelt thanks to investors for their continuous attention and support to the company!

    I sincerely apologize again for the impact of this violation of securities laws and regulations on investors!

Apology: Lu Yong, Chairman of Yabaite

December 17, 2017