Xiabuxiabu Catering Management (China) Holdings Co., Ltd. announced that on 8 May 2021, Xiabuxiabu (China) Food Co., Ltd. entered into a cooperation agreement with Qingdao Richen Food Co., Ltd. to establish a joint venture company in Xiqing District, Tianjin City, the People's Republic of China. Qingdao Richen is a condiment manufacturer established in the PRC and listed on the Shanghai Stock Exchange. To the best of the knowledge, information and belief of the directors of the company having made all reasonable enquiry, Qingdao Richen and its ultimate beneficial owners are third parties independent of the company and its connected persons. Pursuant to the JV Agreement, the JV Company will be owned as to 50% by Xiabu China and 50% by Qingdao Richen. The first instalment of the registered capital of the JV Company shall be RMB98 million, in which each of Xiabu China and Qingdao Richen shall contribute RMB49 million. The JV Company will be principally engaged in production and operation business of condiment products, hotpot soup base, instant and frozen food, etc. (the "Products") for distribution among the Group's restaurants and sales in the market through other channels. The board of directors of the JV Company (the "JV Board") shall be comprised of five directors, of whom two shall be nominated by Xiabu China and three shall be nominated by Qingdao Richen. The chairman of the JV Board shall be nominated by Qingdao Richen and the vice chairman of the JV Board shall be nominated by Xiabu China. The JV Board shall be responsible for, among others, carrying out the JV Board's decisions and shall be in charge of the day-to-day operations and management of the JV Company. Qingdao Richen shall have the control over the JV Company.