The board of KNK Holdings Limited announced that Mr. Lee Pui Chung has been appointed as an independent non-executive Director with effect from 18 July 2019. Mr. Lee Pui Chung aged 32, has over 10 years of experience in accounting, finance and auditing. He is currently working in IMS Group Holdings Limited as the financial controller and the company secretary since March 2019, where he is primarily responsible for financial matters. On the following Letter Dates, the board of directors of the Company (the "Board") received respective legal letters alleging that on the following Bond Dates the Company had issued bonds in the following Bond Amounts due on due dates. No copy of the alleged bonds or supporting documents were supplied under the 2 legal letters dated 4 July and 11 July 2019 respectively. After due enquiry by the Company, it was noted that there was no record of the Board having approved or authorised the issue of the alleged bonds. The Company's legal advisor responded to those 2 legal letters and asked for such documents on 5 July 2019 and 12 July 2019 respectively. As at the date of this announcement, no response has been received by the Company. A copy of an alleged bond certificate (the "Alleged Bond Certificate") was attached to the legal letter dated 17 July 2019 (the "3rd Legal Letter"). The copy of the Alleged Bond Certificate showed a chop bearing the Company' s name in Chinese and English (the "Chop") stamped thereon, and was purportedly signed by Mr. Sun Xiao Li ("Mr. Sun") and Ms. Shi Lijie ("Ms. Shi") in their capacity as executive directors of the Company. In view of the above circumstances together with the seriousness and urgency of the matter, the Board in the Board Meeting resolved to: establish an independent special committee (the "Independent Committee") comprising all independent non-executive directors of the Company and chaired by Mr. Lee Pui Chung to handle the investigation of the allegations made under various legal letters received by the Company and all other matters in connection therewith or arising therefrom; and suspend the duties of Mr. Sun, Ms. Shi and Mr. Gu as executive directors of the Company with immediate effect pending the investigation result of the Independent Committee (the "Suspension").