The Board of Directors of Sunrise Shares Holdings Ltd. referred to its announcement dated 19 May 2023 in relation to the consultancy service agreement entered into between its wholly-owned subsidiary, Shenzhen Kimshek Consultancy Management Limited and Zhuhai Mucun Construction Engineering Co. Ltd. on 17 May 2023 in connection with the provision of consultancy services to Zhuhai Mucun for, inter alia, the construction and decoration engineering management and design, interior design and procurement of materials. Unless otherwise defined herein, all capitalised terms shall have the meaning ascribed to it in the Previous Announcement.

Pursuant to Clause 2 of the Agreement, the term of the Agreement is for a period of one (1) year and the Agreement will be automatically renewed if neither party proposes to terminate the Agreement after the expiration on or before 16 May 2024. The Board announced that both parties have mutually agreed not to renew the Agreement and the Agreement shall end on 16 May 2024. As at the date of this announcement, there is no outstanding consultation fee owed by Zhuhai Mucun.

Upon the termination of the Agreement, both parties shall have no further claim against each other in relation to the Agreement. The termination of the Agreement is expected to have material impact on the Group's earnings per share and net tangible assets per share for the financial year ending 31 December 2024 due to the reduction of consultancy fee income. As announced on 3 May 2024, the acquisition of 100% equity interest in Falcon Pace Sdn.

Bhd. ("Falcon Pace"), which currently manages 196 rooms in a 4-star hotel known as The Pines Melaka in Malaysia, has been completed. Barring any unforeseen circumstances, the hotel operation business is expected to have a positive financial impact on the Group for FY2024.

In addition to the Acquisition, the Group is exploring to expand and pursue other business opportunities which can generate additional revenue streams for the Group. The Company will make further announcements to keep shareholders of the Company informed as and when there are further material updates and developments regarding the new corporate proposal(s) to be undertaken by the Group.