In order to realize effective collaboration with the Company’s existing business and optimize its layout in the industry chain of industrial hemp, Shanghai Green Vaper Technology Co., Ltd., shareholding subsidiary of Shunho (parent company of Yunnan Luxin) signed the Cooperation Agreement with Yunnan Hansu Biotechnology Co.,Ltd (Hansu) and Hemp Investment Group Co., Ltd. on February 19. They proposed to jointly expand e-cigarette and industrial hemp business, and optimize the layout of the industry chain.

This Agreement clarifies that both parties will cooperate, realize benefit and win-win, and explore the market opportunities of the base material after the industrial hemp leaves is extracted (“base material of industrial hemp leaves”) in the electronic biological health product (including heating but incombustible solid, liquid electronic atomizer, buccal tablets, etc. derived from the base material of industrial hemp leaves) area.

To cooperate in establishing a joint venture is a plan of Shunho Stock based on the development strategy layout of industrial hemp, and both parties can give full play to their own resource advantages, jointly explore the market opportunities of the base material after the industrial hemp is extracted in the electronic biological health product area, effectively collaborate with the Company’s existing R&D result and business realization, and optimize the Company’s layout in the industry chain of industrial hemp.

On March 25, Shunho Stock signed an Investment Cooperation Agreement with Zhejiang Shouxian Valley Pharmaceutical Co., Ltd.Both parties proposed to jointly invest in establishing a new company to be engaged in the planting of industrial hemp as well as the R&D and marketing of the downstream products. To cooperate in establishing a joint venture is another strategic plan of the Company based on the development strategy layout, and both parties will give full play to their own resource advantages, and promote the joint venture to carry out relevant business of the planting of industrial hemp as well as the R&D and production of the downstream products in Yunnan.

In future business cooperation, Shouxian Valley will give play to its technical advantages in the planting of Chinese herbal medicine and the research on downstream product application, take charge of the following actual business management of the joint venture, and promote the joint venture to carry out relevant business of the planting of industrial hemp as well as the R&D and production of the downstream products in Yunnan.

Shunho Stock will actively promote the cooperation with Shouxian Valley in the planting of industrial hemp as well as the R&D, production and selling of downstream products, and the cooperation contents include but not limited to seed cultivation, cooperation in agricultural planting, cooperative R&D of products, technical services of products, supply and sale of materials and products, etc.