Dogness (International) Corporation

Dogness operates principally as a holding company, with its subsidiaries primarily engaged in the design and manufacture of pet products and lanyards in China. Key products include leashes and smart products. Most of these products are exported to the U.S. and Europe, where they are sold to pet stores, including major pet store chains. The company's share capital is US$200,000, divided into 100,000,000 Common Shares with a par value of US$0.002 each. Initially, 15,000,000 Common Shares were issued to Silong Chen, the founder and Chief Executive Officer. Mr. Chen later sold 5,931,000 of his Common Shares to nine unrelated private investors for total proceeds of $18,843,000, at a weighted average price of $3.18 per share. After this sale, Mr. Chen owned a 60.46% equity interest in the company. Subsequently, the company established two classes of Common Shares: 90,931,000 authorized Class A Common shares, with 16,844,631 Class A Common Shares issued and outstanding, and 9,069,000 authorized Class B Common Shares, all of which are issued and outstanding. Mr. Chen, through Fine victory holding company Limited, is the sole holder of Class B Common Shares. One of its subsidiaries, Dogness (Hongkong) Pet's Products Co., Limited ("HK Dogness"), was incorporated in Hong Kong on March 10, 2009, as a private company limited by shares.