The board of directors of Prime Intelligence Solutions Group Limited announced that on 11 May 2023, the Company entered into a strategic cooperation agreement with Yidian Chengpin (Nantong) Network Co., Limited. Pursuant to Strategic Cooperation Agreement, the Company and Yidian Chengpin will cooperate on various matters including but not limited to research and development on application of biometric identification technology, artificial intelligence technology, and trading and logistic supply chain. The Strategic Cooperation Agreement represents the intention of the parties to cooperate only and does not have any legal effect. As of the date of this announcement, there is no legal binding agreement has been signed by the Company with Yidian Chengpin. The Strategic Cooperation Agreement shall be effective for a term of one year. The Board is of the view that entering into the Strategic Cooperation Agreement will enable the Company to leverage on the strength, resources and experience of Yidian Chengpin as an e-commerce platform in the PRC to (i) expand the geographical coverage of the Company's business in the PRC; (ii) broaden the Company's customer base; and (iii) maximise the
Company's business values and the interest of the shareholders of the Company. Accordingly, the entering into the Strategic Cooperation Agreement is in the interests of the Company and its shareholders as a whole.