The board of directors of Palinda Group Holdings Limited announced that, on 3 February 2023, the company and China Wine Holdings Limited have signed a letter of intent of strategic cooperation. Pursuant to the Letter of Intent, the Company and China Wine have formed a strategic cooperative relationship based on the principles of equality and mutual benefit, resource sharing, and complementary advantages. Among others, (i) the Company and China Wine will establish a joint venture entity in the People's Republic of China, and the total amount of initial intention investment is no less than RMB100,000,000, with each party holding 50% of the shares, to engage in viticulture, barrel and wine production and wine trading; (ii) China Wine intends to become a strategic shareholder of the Company through equity investment; (iii) the Company and China Wine intend to launch vineyard plantation and wine production projects in short term; (iv) China Wines intends to provide investment, financing and other capital market support for those projects; and (v) the Company and China Wines intend to enter into a separate relevant commercial contract for each future cooperation, which will specify specific service objectives for the project.

The Directors of the Company are of the view that, the proposed strategic cooperation under the Letter of Intent is in line with the Company's long-term development objectives and business development strategy. The strategic cooperation with China Wine will potentially bring profit growth for both parties, which is in the interests of the Company and its shareholders as a whole. It is also beneficial for the Company to continue pushing forward the expansion of the liquor industry to reach even more consumers in different markets and expand the Company's influence in the liquor industry and achieving sustainable growth in the long term.

Based on the above-mentioned, the Directors consider that entering into the Letter of Intent with China Wine is in the interests of the Company and the shareholders as a whole. The Company will make a further announcement in compliance with the Listing Rules of The Stock Exchange of Hong Kong Limited in due course should there be any development. The Letter of Intent is a non-binding framework agreement setting out the general principles of the Proposed Cooperation.

Upon the entering into the Letter of Intent, the parties will use their respective best endeavors to enter into further negotiations with a view to enter into formal and legally binding agreement(s) in relation to the Proposed Cooperation.