Happy Home: wholly-owned subsidiary plans to establish a joint venture company with an affiliated party with a registered capital of 60 million yuan.

Happy Home announced that its wholly-owned subsidiary, Shenzhen Happy Home Investment Co., Ltd., intends to establish a joint venture company with controlling shareholder Guangdong Haoxing Investment and others to invest 60 million yuan in coconut shell pre-carbonized materials and other projects. Shenzhen Happy Home Investment will contribute 30.6 million yuan, accounting for 51%; Haoxing Investment will contribute 14.4 million yuan, accounting for 24%; Cheng Song, Yang Ronghua, Weng Sumin, and Li Xiaodong will each contribute 4.8 million, 3.6 million, 3.6 million, and 3 million yuan respectively, accounting for 8%, 6%, 6%, and 5% respectively. This matter constitutes a related party transaction, does not constitute a major asset restructuring, and does not require shareholder approval.