Yincheng Life Service CO., Ltd. is an established property management service provider in the People's Republic of China with over 20 years' experience in the provision of property management services and community value-added services. To further expand the scope of property management services to the non-residential properties managed by the Group, the board (the 'Board') of directors (the 'Directors') of the Company announced that the Group will strategically tap into the catering business through the establishment of a wholly-owned subsidiary of the Company in Nanjing City, the People's Republic of China (the 'New Business'). The newly formed subsidiary will principally engage in the provision of catering services to staff canteens in the non-residential properties managed by the Group. The New Business will be funded by the internal resources of the Group. The Board considers that the commencement of the New Business can enhance the competitiveness of the Group in tendering for non-residential properties projects and strengthen the market position of the Group in the property management service industry, which is in line with the strategies of the Group, and accordingly is in the interest of the Company and the Shareholders as a whole.