1. According to Article 25 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC) (Order No.512 of the State Council of the People's Republic of China), "exchange of non-monetary assets and donation of goods, property and services, repayment of debts, sponsorship, fund-raising, advertising, samples, employee welfare or profit distribution shall be regarded as.

2. According to the Notice of State Taxation Administration of The People's Republic of China on Several Issues Concerning the Confirmation of Enterprise Income Tax (No.875 [2008] of the State), 3. Enterprises selling their own goods by buying one and getting one free are not donations, and the total sales amount should be shared according to the proportion of the fair value of each commodity. "