The board of directors of the Company announced that, on 4 November 2021, a wholly-owned subsidiary of the Company entered into a non-legally binding memorandum of understanding (the ``MOU'') with an independent third party to establish a strategic cooperation between the Group and the JV Partner. The JV Partner is a manufacturer and provider of health food, skin care, personal care and other healthcare products which predominantly sells and distributes such products in the People's Republic of China. To the best knowledge, information and belief of the directors of the Company having made all reasonable enquiries, the JV Partner and its ultimate beneficial owner are third parties independent of the Company and its connected persons (as defined in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ``Stock Exchange'')). Pursuant to the MOU, the Group and the JV Partner intend to establish a joint venture company (the ``JV Company''), the equity interest of which would be owned as to 60% by the Group and 40% by the JV Partner. The JV Partner would grant to the JV Company a right to market and sell three brands of its health food (collectively, the ``Health Food''), and the Group would inject the necessary operating capital to the JV Company. According to information provided by the JV Partner, the Health Food have gained market recognition over time and the revenue generated from the sale of the Health Food has recorded significant increase over recent years and is expected to continuously increase in future. The parties intend to enter into a binding agreement in respect of the Strategic Cooperation within 30 days from the date of the MOU. The Group will continue to conduct due diligence review on various respects of the JV Partner and the Health Food including, among others, the business operations, financial conditions and legal and compliance matters and determine whether or not to proceed with the signing of a binding agreement.