The [General-purpose Blockchain SOC Product Development Contract] (hereinafter referred to as the Original Contract) signed by our company and Dengxing Technology Enterprise Co., Ltd. (hereinafter referred to as Dengxing) in July this year (2018) was unable to fulfill the payment within the agreed period. After multiple negotiations, it was still unable to complete the payment within the extended period.
In addition to making a provision for bad debt losses on September 21, 2018 for the revenue already recognized under the original contract, our company also issued a registered letter of termination of the original contract on September 25 of the same year (delivered on September 26). Deng Xing Chairman Huang Congyi also called on September 26 to confirm receipt of the letter and promised that after the contract is terminated, the names, trademarks or identifiable logos of our company and related personnel will be removed from all Deng Xing publicity, propaganda, and web pages related to the original contract to avoid misleading the outside world. We hereby inform you.