On 14 May 2021, CL Group (Holdings) Limited entered into the MOU with the Kaifeng Zhengxiufulai Pharmaceutical Technology Co. Ltd. (Cooperator) in relation to the Proposed Cooperation. The Cooperator is principally engaged in retail pharmacy and sale of pharmaceutical products through automatic vending machines in China entitled ("Guotaiyi Xiuzheng 24 Hour Future Pharmacy Drug Machine Project"). To the best of the Directors' information and belief having made all reasonable enquiries, the Cooperator is a third party independent of the Company and its connected persons. Pursuant to the MOU, the Company and the Cooperator shall cooperate in promoting the sale of pharmaceutical products through automatic vending machines in China entitled. Details of the cooperation shall be subject to further negotiations and execution of formal agreements. The MOU does not create legally binding obligations on the parties in relation to the Proposed Cooperation.