CT Vision S.L. (International) Holdings Limited entered into memorandum of understanding with Zhejiang Shunlian. Pursuant to the New MOU, Zhejiang Shunlian shall not, for a period of 90 days from the date of the New MOU or such longer period as the parties may agree (the "Exclusivity Period"), directly or indirectly initiate, solicit or encourage any other approach, inquiries or offers from, or participate in any inquiry, discussion, or proposal, or furnish any information to, or enter into any agreement or statement of intent or understanding with, any third party on any sale or transfer of any equity interest or material assets of Zhejiang Shunlian Group. The New MOU will be terminated upon the earlier of (i) the end of the Exclusivity Period; the signing of the Formal Agreements by the Company and Zhejiang Shunlian; or the Company and Zhejiang Shunlian agree in writing to terminate the New MOU. Legally binding Save for the legally binding provisions relating to the Exclusivity Period, confidentiality, termination and governing law, the New MOU is not legally binding on the Company and Zhejiang Shunlian in respect of the Transaction. The Transaction is subject to the execution and completion of the Formal Agreements. REASONS FOR ENTERING INTO THE NEW MOU Zhejiang Shunlian is in the e-commerce industry with relevant permits and qualifications
including but not limited to Internet Content Provider (ICP) qualification of electronic commerce, streaming operation licence and qualifications in relation to providing pharmaceutical product information on the internet. The online platform operated by Zhejiang Shunlian accommodates a wide variety of products including but not limited to agricultural products and healthcare products.