[Hong Kong, 2 February 2021]Yincheng Life Service Co., Ltd (“Yincheng Life Service” or “theCompany”, together with its subsidiaries, “the Group”, Stock code:1922) is pleased to announce that on 1 February 2021, Nanjing Yincheng PropertyServices Co., Ltd. (“Yincheng Property Services”), an indirect wholly-ownedsubsidiary of the Company, and Nanjing Yincheng Business Management Co., Ltd.(“Yincheng Business Management”) entered into the Joint VentureAgreement to form the Joint Ventures of Nanjing Yincheng Commercial PropertyServices Co., Ltd. (“Yincheng Commercial Property” or “JV Company”)  and Nanjing Yincheng Hui Technology NetworkCo., Ltd. (“Yincheng Hui”).

Yincheng Commercial Property will primarilyfocus on providing property management service to commercial properties,especially shopping malls or arcades with a GFA of over 20,000 square metres. TheGroup currently covers 10 types of non-residential projects includinggovernment facilities, financial institutions, hospitals, etc. Theestablishment of Yincheng Commercial Property will help the Group tap into thecommercial properties management sector, expand the income source and improve itscomprehensive competitiveness. Meanwhile, as themanagement of commercial properties is expected to have a higher gross profitmargin and is considered more profitable in general as compared to themanagement of residential and other non-residential properties, it can bringpositive results to the financial position of the Group. Yincheng Commercial Property had been focusing onthe design and development, investment, operation and marketing of commercialproperties, with a total GFA under its management and in the pipeline exceeds200,000 square meters. All non-residential projects obtained and to be obtainedby Yincheng Business Management and JV Company shall be managed by JV Company. JVCompany will use the brand of “Yincheng Properties” to continuously providestandardized, professional, and high-level property management services.

Yincheng Hui is established to primarily focus on thedevelopment and provision of community value-added services, where suchservices shall be provided through online platforms offering exclusivemembership benefits, including but not limited to discounts and promotionalactivities of the diversified brands (in restaurant, supermarket,entertainment, clothing etc. sectors) in corporation with Yincheng BusinessManagement in the PRC for owners or users of residential and non-residentialproperties currently under the management of the Group.

The management of Yincheng Life Service considers commercialproperty service an important field for the development of the Group.  The establishment of Yincheng CommercialProperty will help the Group obtain more commercial projectsin the future, which is in line with the Company's long-term strategy ofincreasing the proportion of non-residential projects. On January 5, 10ministries including the MHURD, Central Political and Legal Affairs Commission,and National Development and Reform Commission jointly issued the Notice onStrengthening and Improving Residential Property Management, encouraging theproperty management companies to use Internets of Things, Cloud Computing, BigData and other technologies to promote online integrated development to improvethe level of intelligent management of facilities and equipment. Yincheng Huicame into being under this background. Yincheng Property Management has beencultivating high-quality property management for more than 20 years, owning agood reputation and an executive team with high service quality and standardswhile Yincheng Commercial Management has extensive brand resources and advanceddigital marketing capabilities. With these two companies powerfully combinedand connected, the integration of offline services and online consumption willenable the Company to take a new step beyond the traditional property services,building up a "Property Management +" ecosystem with proprietor-orientedprincipal, improving customer surprise as well as providing a better services.

At the signing ceremony ofthe JV agreements, the two parties discussed business cooperation and futuredevelopment in line with the cooperation purpose of "Making the two jointventures a regional model, deepening Nanjing market with dedicated service soas to empower the Yincheng brand", achieving multi-level, high-level andfar-reaching mutual benefit and win-win results in the fields of commerce,property, online platform and so on.

The registered capital oftwo Joint Ventures will be RMB5,000,000 for each respectively. Yincheng Property Serviceswill hold 60% of the equity interests in Yincheng Commercial Property and 40% of the equity interestsin Yincheng Hui respectively, among which Yincheng Commercial Property’s financial results will beconsolidated into the financial statements of the Group.

Photos at The Signing Ceremony

Left: Mr. Tan Ning, GeneralManager of Yincheng Commercial Management

Right: Mr. Li Chunling, Presidentof Yincheng Life Service