Hunan Development announced that on the same day, the company signed a cooperation agreement with the related party Carnation Company, intending to jointly contribute 100 million yuan to set up a new company to carry out institutional pension business such as care for the elderly, of which the company plans to contribute 80 million yuan, accounting for 80 percent. After the completion of the above matters, some of the business of the new company is the same or similar to that of Carnation. With regard to the inter-industry competition, Hunan Development Group, the company's controlling shareholder, promised to urge Carnation to strive to improve asset quality and operating performance, and to promote Carnation or its pension assets to be transferred to listed companies as soon as possible.