The board of directors of HC International Inc. announced that Beijing Huicong International Information Co., Ltd., a wholly-owned subsidiary of the company, has entered into a cooperation framework agreement with Joyvio Agriculture Development Co., Ltd. ("Joyvio Agriculture") on 31 January 2018 to establish a stable strategic cooperation. The group will combine its strength in blockchain services with Joyvio Agriculture in fields including brand anti-counterfeiting, smart source tracking, scene application, blockchain building, supply chain innovation and smart marketing, so as to realize the building of a block chain application platform for modern agricultural industry. The Cooperation Framework Agreement shall be valid for a term of two years from the date of its signing. The term of the Cooperation Framework Agreement shall be extended for one year if none of the parties requests termination at the expiration of the Cooperation Framework Agreement. The Cooperation Framework Agreement may be terminated by unanimous agreement of both parties through negotiation. Both parties shall further enter into formal agreements or supplemental agreements in respect of specific plans regarding the cooperating business and relevant terms under the Cooperation Framework Agreement. Joyvio Agriculture will become the Group's first application scene of blockchain. The Group will commence the development of its blockchain products in the agricultural field through cooperating with Joyvio Agriculture, and expand the Group's business into the broad blockchain market by leveraging on the Group's possession of big data of the industry and the advantage in the application scene of blockchain. The Group is committed to becoming a leading industrial internet group in the PRC. The Directors are of the view that the entering into of the Cooperation Framework Agreement is in line with the Company's future business development strategy. Therefore, the Directors consider that the Cooperation Framework Agreement is on normal commercial terms, and is in the interests of the Company and the shareholders of the Company as a whole. The Cooperation Framework Agreement only represents the preliminary intention of both parties in the building of a modernised application platform for agricultural industry chain, and the final cooperation plan shall be subject to the formal agreement to be entered into by both parties. The Company will make further announcement as and when required under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.