The board of directors of the CEFC Hong Kong Financial Investment Company Limited announced that on 10 January 2022, the Company entered into the cooperation agreement (the Cooperation Agreement) with Qingdao Weiding Sports Supplies Company Limited (Qingdao Weiding) for the purpose of establishing the strategic cooperation relationship with each other in the trendy apparel market. Principal modes of cooperation: The Company and Qingdao Weiding (the Parties) shall jointly formulate the cooperation plan, determine specific cooperation projects, and determine their respective work for implementation accordingly. Pursuant to the Cooperation Agreement, the Parties shall: carry out in-depth research and development on trendy apparels' intellectual property and trendy apparel products; coordinate the resources, sales channels and marketing activities to increase market competitive advantages; share customer information, recommend customers to each other and provide services to each other's customers for product introduction and promotion; and jointly develop new products, new businesses and new business models in the trendy apparel market.

Sales referral and collaboration arrangement Pursuant to the Cooperation Agreement, the Parties shall promote and refer to each other third-parties fashion apparel orders; application of non-apparel trendy brand related products in each other's branded products; application of branded products of the Parties in cross-over collaboration with other branded products. A referral fee shall be payable by the referee to the referrer based on the successful contract amount of the apparel order, on the conditions that a certain amount of sales and a corresponding gross profit margin are achieved. The Parties shall also promote and refer to each other intellectual property (IP) applied in the other party's trendy apparel order and an IP authorisation fee shall be payable by the referee to the referrer based on the contract amount of the relevant apparel order, on the conditions that a certain amount of sales and a corresponding gross profit margin are achieved.

In addition, Qingdao Weiding shall promote to the Company its own brand "Weiding" orders and offer a discounted contract price to the Company based on the final retail price. Production priority: If the Company places an order 30 days in advance, Qingdao Weiding will give priority to the production of the Company's orders with its full capacity, while if the Company places an order 15 days in advance, Qingdao Weiding will give priority to the production of the Company's orders with not less than 50% of its full capacity.