The board of directors of Yin He Holdings Limited announced that on 12 November 2019, the Company entered into the memorandum of understanding with Shanghai Sky Hotel Brand Management Co. Ltd. in relation to the proposed formation of a joint venture company to engage in the production and development of a theme park. Pursuant of the MOU: the theme park would be located in the Yangtze River Delta economic zone, Guangdong-Hong Kong-Macao Greater Bay Area or Southwest Chengdu-Chongqing Metropolitan Area and the proposed target area of the theme park would be 1,800 mu of land; the Company shall provide certain initial financial resources and financial expertise in fund-raising to the Proposed Joint Venture as appropriate; Shanghai Sky Hotel shall provide its expertise in animation film creation to the Proposed Joint Venture; the Company and Shanghai Sky Hotel agreed to establish the JV Company as the main production and development entity of the Proposed Joint Venture; the Company and Shanghai Sky Hotel agreed to hire intermediaries to discuss and handle specific matters regarding the Proposed Joint Venture; and the Proposed Joint Venture is subject to further negotiation concerning the entering into of a joint venture agreement which may or may not be entered into in relation to the possible joint venture.