China Shenshan Orchard Holdings Co. Ltd. announced that the Company had incorporated a new wholly-owned subsidiary, Hubei Shenshan Orchard Technology Co. Ltd. on 16 November 2021 with a registered capital of RMB 5 million in China. The government of China has articulated a vision for the modernisation of the agricultural industry by 2035 with the aim of eradicating poverty in China1. With the growing importance of food sustainability, the government of China is currently investing heavily in agri-tech and scientific research, using technology to increase crop yields and productivity. Coupled with the Group's strong technological capabilities accumulated over the years and extensive experience in agriculture technology adoption, the Company incorporated Hubei Shenshan Orchard as the Group's Research and Development Centre ("R&D Centre") to leverage on the favourable trend and government support for the agricultural industry. The R&D Centre will bring top-notch research expertise together to integrate the Group's core technologies at high level of competence, showcasing the Group's competitive advantages in the research and development field and planting management. The R&D Centre will place its focus on researching and developing new kiwifruit varieties with enhanced tastes, quality, higher yield, higher disease resistance as well as targeting significant challenges in the kiwifruit industry including pests and disease, environmental factors, sustainability and food security with the adoption of technology.