China High-tech: Reply to the Shanghai Stock Exchange's inquiry regarding overseas investment matters.

China High-Tech announced that Beijing Weiheng Law Firm has issued a special legal opinion on the inquiry letter from the Shanghai Stock Exchange. The establishment of five new companies falls under the "related transactions under the same trading category", and the company will calculate and announce the cumulative total according to regulations; the establishment of the five companies did not violate any regulations and there was no deliberate attempt to evade board review. The establishment of subsidiary and affiliate companies is for the actual business layout, not for maintaining stock prices or cooperating with market value management, and there is no situation of using information disclosure to influence stock prices. There have been no major omissions in information disclosure in the past 6 months, and there is no misleading of investors in business transformation or intentional riding on hot concepts.