The board of directors of Zheng Li Holdings Limited announced that on 12 January 2022 (before trading hours), the Company, entered into a non-legally binding memorandum of understanding for joint venture cooperation (the "JV Cooperation MOU") with Beijing Churen Yiliao Technology Co. Ltd. in relation to the possible establishment of a joint venture enterprise (the "JV Cooperation") for the potential development of smart kitchen appliances, and in view of which, the parties to the JV Cooperation MOU (the "Parties") agreed to utilize their respective resources, expertise and experience to explore various possible in-depth cooperation with each other via the formation of a joint venture enterprise. The Company and Churen Yiliao intend to negotiate in good faith the terms and conditions of further legally binding agreement(s) with respect to the JV Cooperation (the "Agreement") as soon as reasonably practicable and in any event, within the negotiation period of 14 days (or any other further extended period agreed by the Parties, the "Negotiation Period").

For the avoidance of doubt, the Negotiation Period shall constitute an exclusivity period of negotiation in relation to the JV Cooperation between the Parties, and the JV Cooperation MOU may be terminated upon the expiry of the Negotiation Period or the signing of the Agreement.