Response to media enquiry regarding "CU Mask"

Esquel Group confirms to be a raw materials supplier of “CU Mask”.

Given Esquel Group Vice Chairman Ms. Teresa Yang is also the chairman of The Hong Kong Research Institute of Textiles and Apparel Limited (“HKRITA”), to avoid potential conflicts of interest, neither Esquel Group nor Ms. Yang were involved in the discussion process of the development, materials supply and production of “CU Mask”.

However, during HKRITA’s procurement process, they reached out to the sales department of Esquel Group and expressed extreme difficulty in securing raw materials. With the goal of helping Hong Kong citizens obtain the masks in the shortest period of time, Esquel Group agreed to supply to HKRITA the innermost cotton fabrics of “CU Mask” at cost. The quantity supplied in total amounted to 450,000 yards, for about HKD 3.8 million. Ms. Yang made a formal declaration to the board of HKRITA regarding Esquel Group’s involvement in the late February board meeting, and she did not participate in any discussions and decision making processes related to “CU Mask”.

Esquel Group hopes the above statement could dispel any concerns regarding our involvement with “CU Mask”.