Announcement regarding the decision of the Board of Directors to change the internal organizational structure (additional explanation regarding the announcement of 03/29/2022)

Statement

1.Type of merger and acquisition (e.g.merger, spin-off , acquisition,
or share transfer):spin-off
2.Date of occurrence of the event:2022/03/29
3.Names of companies participating in the merger and acquisition
(e.g., name of the other company participating in
the merger, newly established company in a spin-off,
acquired company, or company whose shares are transferred):
spin-off company: China Capital Management Group INC.
newly established company in a spin-off: China Boutix Hotel Management and
Development (BJ) Co., Ltd
4.Trading counterparty (e.g., name of the other company
participating in the merger, company spinning off, or trading
 counterparty to the acquisition or share transfer):
China Capital Management Group INC.
5.Relationship between the trading counterparty and the
 Company (investee company in which the Company has
re-invested and has shareholding of XX%), explanation
of the reasons for the decision to acquire from or
transfer shares to an affiliated enterprise or related
party, and whether it will affect shareholders' equity:
the Company's 100% fully owned subsidiary, and it will not affect
shareholders' equity
6.Purpose of the merger and acquisition :N/A
7.Anticipated benefits of the merger and acquisition :N/A
8.Effect of the merger and acquisition  on net worth per share and
earnings per share:N/A
9.Share exchange ratio and calculation assumptions:N/A
10.Whether the CPA, lawyer or securities underwriter issued
an opinion on the unreasonableness regarding the transaction:N/A
11.Name of accounting, law or securities firm:N/A
12.Name of CPA or lawyer:N/A
13.Number of CPA or lawyer license:N/A
14.Estimated date of completion:
Depending on its local government's processing schedule
15.Matters related to the assumption of corporate rights and
 obligations of the dissolving company (or spin-off) by the
 existing or newly-established company:N/A
16.Basic information of companies participating in the merger:N/A
17.Matters related to the spin-off (including estimated value
 of the business and assets planned to be transferred to
the existing company or new company.The total no.of shares
 to be acquired by the spun-off company or its shareholders,
 and their respective types and no.Matters related to the
 reduction, if any, in capital of the spun-off company)
(note: not applicable for announcements unrelated to spin-offs):
After spin-off,China Capital Management Group INC.'s paid-in capital:
CNY35.39M
China Boutix Hotel Management and Development (BJ) Co., Ltd's paid-in
capital:CNY11.70M
18.Conditions and restrictions for future transfer of shares
resulting from the merger and acquisition :N/A
19.Other important terms and conditions:N/A
20.Any objections from directors to the transaction:No
21.Is it related to new business model?:No
22.Explanation of new business model:N/A
23.Transactions with the counterparty for the past one year and
the next year:N/A
24.Source of funds:N/A
25.Any other matters that need to be specified:None

Aubrey L. Morgan