Saturday Footwear Industry Announcement On Foshan Longxing Shoes Co., Ltd.

August 31st, securities code: 002291 securities abbreviation:

Foshan shoe Limited by Share Ltd on Saturday to Foshan, a wholly owned subsidiary, Longxing

The company and

First, Saturday 18.80+0.100.53% capital increase survey

Foshan Longxing Shoes Co., Ltd. (hereinafter referred to as "Foshan Longxing") is a wholly-owned subsidiary of the company with a registered capital of 1 million yuan, and the company holds 100% of its equity.

In June 2010, Foshan Longxing signed a license agreement with Italy STONEFLY SPA company, STONEFLY

SPA authorized Foshan Longxing to produce, sell and promote STONEFLY brand footwear and accessories products in mainland China.

In order to enable its business to develop normally, the company intends to increase its capital to Foshan Longxing by 9 million yuan by its own funds at the second meeting of the second board of directors.

After the capital increase was completed, the registered capital of Foshan Longxing was changed to 10 million yuan, and the company held 100% of its equity.

According to the relevant provisions of the articles of association and the rules for the listing of shares on the Shenzhen stock exchange, the capital increase matters do not constitute related pactions.

Two.

Foshan Longxing Shoes Co., Ltd., established in January 2008, has a registered capital of 1 million yuan, and the legal representative, Zhang Zemin, is registered in Foshan, Guangdong.

Footwear, leather goods, clothing.

Foshan Longxing has not yet carried out specific business as of June 30, 2010.

Three, the purpose of increasing capital and its impact on the company.

The purpose of this capital increase is to ensure that Foshan Longxing produces, sells and promotes STONEFLY brand footwear and accessories business in mainland China, and supplements its operating liquidity.

The capital increase has no impact on the company's financial position and operating results this year, which is in line with the company's strategic plan and is conducive to the long-term development of the company.

Four, risk warning

The board of directors of the company will pay close attention to the progress of the capital increase and fulfill the obligation of information disclosure in a timely manner.

Investors are invited to pay attention to the announcement of the company's disclosure in the China Securities Daily, the securities times and the www.cninfo.com.cn network.

All information is based on official announcements in designated newspapers and websites. Investors are advised to pay attention to investment risks.

Five. Reference document second session of the second meeting of the board of directors resolution

Notice hereby.

Foshan Saturday shoe Limited by Share Ltd

Board of directors

August 30th, two