The board of directors of Wealthking Investments Limited announced that a wholly-owned subsidiary of the Company, namely Block AI Company Limited (‘Block AI’), was incorporated in the Republic of Seychelles on 24 August 2021, with the nature of its business being investment holding. Block AI was established to implement the strategic plan of the Board to invest in digital economy, with a focus on artificial intelligence and blockchain business. Reasons for and benefits of the establishment of the wholly-owned subsidiary - The digital economy has become a new driving force for economic growth. Blockchain and artificial intelligence, as the key industries of the digital economy clearly stipulated in the outline of the 14th Five-Year Plan, will drive another industrial revolution. The financial industry, as one of the most mature sectors in the application of blockchain technology, has undergone revolutionary changes. Digital assets have become a non-negligible asset format in the financial industry, there is an increasing number of traditional financial institutions and asset management companies that begin with their strategic expansion in the field of digital assets. The Company believes that the integrated development of industries, and technologies and financial capital is a general trend, and there will be promising growth prospects for the artificial intelligence and blockchain sectors driven by emerging technologies, policies and demand. The Board believes that the establishment of Block AI to invest in technology companies with high growth potential, is a key step in the Company's strategic deployment of its investment in the technology sector, and will help to capture the development opportunities in the digital economy. As a professional cross-border investor, the Company's investment strategy is always in line with the development trend of China's economy and technology. In the context of the current digital economy, the Company focuses on investment opportunities in the artificial intelligence and blockchain sectors. The Company has also started to actively engage with potential partners on relevant investment opportunities, to identify technology companies with great potentials by making use of resources in the industry, which is believed to enhance the value of the Company in the long run.