S. Culture International Holdings Limited has entered into an entrusted management agreement with Shangying Global Co., Ltd., pursuant to which Shangying Global is entrusted to provide management services on certain daily business operations of Shangying Hospital Management (Shanghai) Company Limited on behalf of the Company. The Management Services shall include, among other things, service and safety quality management, administrative management, and other related daily affairs as required by Shangying Hospital. Pursuant to the Management Agreement, the provision of the Management Services by Shangying Global shall commence from 1 January 2020 till 31 December 2022. The Management Services fee to be paid by the Company for the initial year shall be RMB 600,000, and the Management Services fee shall be adjusted on an annual basis in the following two years, subject to the scale of business development and the complexity of the Management Services and compliances with the listing rules applicable to both parties.