Sunny Side Up Culture Holdings Limited announced that the Company established a wholly-owned subsidiary Qinghua Industrial Development Co. Ltd. (Qing Hua Shi Ye Fa Zhan You Xian Gong Si) ("Qinghua Subsidiary") in mid-June in order to better serve the needs of strategic development planning, accelerate the development of the new energy market, especially the mainland China market, and take the overall advantages of Hong Kong as the financial service center of this market, and optimize the Company's resource allocation. It is expected that Qinghua Subsidiary's business scope includes but is not limited to new energy development; mining machinery sales; mineral resource reserve evaluation services; electronic product sales; corporate headquarters management; industrial engineering design services; trade agency; asset management services for self-owned capital investment; socioeconomic consulting services; information technology consulting services; security consulting services; business management consulting services; conference and exhibition services; development, consultation, exchange, transfer and promotion of technical services, etc.

The establishment of Qinghua Subsidiary will help the Group's future strategic development by further improving the business layout and increasing international operating income. Therefore, the Board is of the view that the establishment of Qhua Subsidiary is in the interests of the Company and its shareholders as a whole and will bring positive returns to the Group in the long run.