In 2017, the Group were transitioning to emerging business areas such as information technology while cementing current packaging business. The Group’s wholly owned subsidiary company, Shanghai TY Technology Co., LTD (hereinafter referred to as “TY Technology”), is the market leader of tailor made marketing solutions to FMCG industry in China. TY Technology’s core strategic goal is “Everything is Connected”, it devotes to providing unique QR code to every FMCG product and connecting everything to the internet. By scanning QR code, not only manufacturers can achieve to electronically monitor and manage the whole sales process, consumers can also gather product information and participate in brand promotion activities. TY Technology integrates cloud computing and mobile internet technology to provide business solutions to its corporate customers about all-round O2O marketing, traceability, logistic and big data analysis, satisfy customers’ demand of product information and communication in different stages.

Since 2020, the Group has continuously diversified its business segments including chlamydomonas reinhardtii, micro-algae products business. The Group has explored the business opportunities in health food industry, and given the common consciousness of healthy diet and the increasing vegan or vegetarian population in recent years, the healthy food market is growing and attracting more consumer spending.    In 2020, the Group commenced its construction of the manufacturing facilities for chlamydomonas reinhardtii, micro-algae and related products, with production scale of 10,000 tons/year in the first stage, in the Wucheng District, Changzhi City, Shanxi Province, PRC. The construction for the first phase production scale is 4,000 tons/year and it was officially launched on 23 April 2020, the Group has substantially completed its construction of the manufacturing facilities of 4,000 tons/year production scale as at the date of this report. The construction of the fermentation and related facilities is the first step in the Group’s diversification into chlamydomonas reinhardtii, micro-algae and related products business. It is expected that the Group will commence the production of chlamydomonas reinhardtii, micro-algae and related products in 2021. Given the trend of healthy food in recent years, the Group considers the investment in chlamydomonas reinhardtii, micro-algae and related products business is a good opportunity for the Group to diversify its income base.