Based on the needs of business development, net high technology plans to contribute no more than 30 million to establish wholly -owned subsidiaries

On July 22, 2022, Net High Technology (831940.NQ) issued an announcement of the establishment of a wholly -owned and holding subsidiary of the holding.

The announcement shows that in order to further promote the company's strategic layout in the field of defense information network construction, the company intends to set up a wholly -owned subsidiary in Hubei Province for a registered capital of not more than 30 million yuan in 2022.

In order to further promote the company's strategic layout in the field of national defense information network construction, the company intends to set up a holding subsidiary in Henan Province for a registered capital of no more than 30 million yuan in 2022. The establishment of wholly -owned and holding subsidiaries in this plan is conducive to the company's strategic layout in the field of defense information network construction, and it will have a positive impact on the company's future strategic development.

The names of all -as -the -capital and holding subsidiaries, specific registration addresses, and business scope are based on the final registration of the local market supervision and management departments of the provinces.

This transaction does not constitute a major asset reorganization. According to the "Applicable Guidelines for the M & A and Reorganization Business Rules of the National Small and Medium Enterprise Transfer System No. 1 -Major Asset Reorganization", it is stipulated that the listed company has a new wholly -owned subsidiary or a holding subsidiary, an increase in capital to wholly -owned subsidiaries or holding subsidiaries. It does not constitute Major asset restructuring. This investment is newly established and the holding subsidiaries are newly established, so it does not constitute a major asset reorganization.

On July 22, 2022, after review and approval by the 11th meeting of the third board of directors of the company, the external investment matters were approved by the board of directors to be submitted to the shareholders' meeting for review and approval.

According to the high -tech of the Internet, the foreign investment is based on the needs of business development, which meets the planning of the company's overall development strategy in the future, is conducive to promoting the company's business development, increasing the company's comprehensive competitiveness, and creating value for shareholders.

This foreign investment will not have a significant adverse effect on the company's daily operations. The company will continue to improve the management and control system of subsidiaries, clarify operating decision -making and risk management, and establish an effective internal control and supervision mechanism to continuously adapt to business needs and market changes, and actively prevent and cope with risks.

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