The board of directors of Feiyang International Holdings Group Limited announced that, on 1 August 2023, the Company entered into a cooperation agreement with SHINTO Holdings Inc. pursuant to which the Company and SHINTO Holdings agreed to establish a joint venture fund management company in Hong Kong. The registered capital of the JV Company is HKD 1,000,000, among which each of the Group and SHINTO Holdings shall contribute HKD 500,000, representing 50% each of the equity interests in the JV Company. The Group and SHINTO Holdings will gradually complete the capital contribution to the JV Company.

Pursuant to the Cooperation Agreement, the proposed name of the JV Company shall be Feiyang Traveler Innovation Fund Management Co. Ltd. (Fei Yang Lu Xing Jia Chuang Xin Ji Jin Guan Li You Xian Gong Si). The board of directors of the JV Company shall comprise three members appointed by the Group and two members appointed by SHINTO Holdings, with the representative appointed by the Group as the chairman of the board of directors.

The JV Company will be a subsidiary of the Company and its financial statements will be consolidated into the financial statements of the Group. Following the completion of the setting up of the JV Company, the Company will, in accordance with all the applicable laws and regulations, set up and manage a fund for investment in high-end hotel and high-quality homestay assets in Japan and other locations such as the People's Republic of China (the ``PRC'') and Southeast Asia (the ?Fund''). It is expected that the Fund intends to operate in the form of limited partnership, with the JV Company as the general partner and other qualified institutions and individual investors as limited partners.

The scale of the funds to be raised by the Fund is expected to be no more than HKD 1 billion. The actual set-up terms and contribution amounts of the Fund shall be subject to further negotiations. As at the date of this announcement, no binding agreement(s) regarding the establishment and the subscription of the Fund has been entered into yet.

The JV Company will engage professional managers and team to manage and operate the Fund. The annual management fee charged by the JV Company shall be 2% of the actual contribution of all partners per annum.