The board of directors of SunMoon Food Company Limited announced to shareholders of the Company that the Company had on 9 September 2023, entered into a cooperation framework agreement with Xiaomai International Holdings Group Co Ltd. in relation to the exploration of potential opportunities in the ready-to-cook products industry, fruit exports and animal protein imports. Under the Agreement, the key obligation of the Company is to establish a company in Yantai City, Shandong Province. The intention is to conduct and operate business operations in Yantai City as one of the business headquarters and progressively expand the business.

With the cooperation framework set out in the Agreement, both Parties aim to contribute by exchanging expertise and specific strengths which include the procurement of raw materials, supply chain channels and industry knowledge to work on the ready-to-cook products, fruit exports and animal protein imports. Both Parties will discuss further to establish comprehensive agreement(s) and the Company will provide further details in subsequent announcement(s) in accordance with the listing rules of the Singapore Exchange Securities Trading Limited at the appropriate juncture. The entry by the Company into the Agreement is part of the Company's efforts to expand its product offerings and its sales network and gain further potential cooperation opportunities in the near future.

The Proposed Cooperation will enable the Group to be directly involved in new product offerings, such as the ready-to-cook products. The business of ready-to-cook products will allow the Company to tap on health-conscious individuals and provide consumers with convenience as well as healthy, safe, nutritious, tasty and authentic Chinese food through advanced management means.