Tai Ping Carpets International Limited dated 12 December 2019 in respect of the Previous Products and Services Supply Agreement entered into between the Company and HSH in respect of the supply and purchase of the Products and Services. Since the Previous Products and Services Supply Agreement will expire on 31 December 2022, the Board announces that on 16 December 2022, the Company entered into the New Products and Services Supply Agreement with HSH in order to renew the arrangements under the Previous Products and Services Supply Agreement on substantially the same terms. Parties: the Company as the supplier; and HSH as the purchaser. Term: The New Products and Services Supply Agreement is for a term of three years with effect from 1 January 2023 and ending on 31 December 2025 (both days inclusive).

Following expiry of the Term, the parties may agree in writing to renew the New Products and Services Supply Agreement for a further 3-year term. The Company will re-comply with the Listing Rules upon renewal of the New Products and Services Supply Agreement. Transaction nature: The Company will supply, or will procure a member of the Group to supply, and HSH will purchase, or will procure a member of the HSH Group to purchase, such quantities of the Products and Services as may be ordered from time to time on the terms and conditions set out in the New Products and Services Supply Agreement, provided if the fulfillment of such order would result in the aggregate value of the Products and Services ordered in a particular period exceeding the Annual Cap(s) for the corresponding period set out in the paragraph headed "Annual Caps" of this announcement, then the Company and HSH shall comply with any applicable requirements of the Listing Rules before the completion of such sale and purchase of Products and Services ordered.

The HSH Group will be under no obligation to buy all or any of its requirements for Products and Services from the Group and the HSH Group will be free to purchase any products or services equivalent or similar to, or performing the same function as the Products and Services from any other person. The Company may enter into, from time to time, as necessary, separate purchase orders or quotations for each specific transaction contemplated under the New Products and Services Supply Agreement during the Term, with HSH. Each purchase order or quotation will set out further details of the Products and/or Services, price, payment terms, delivery date and other relevant specifications.

Purchase Price: The prices payable by HSH for the Products and Services will be those set out in the quotation set by the relevant member of the Group to the relevant member of the HSH Group. Such prices will be on normal commercial terms (or terms no less favorable to the Group than terms available to or from independent third parties) determined by reference to the Group's standard pricing guidelines (applicable to transactions with independent customers as well as connected persons of the Group) plus a certain percentage mark-up added to the standard price which will depend on factors such as carpet type, size of order, product specifications (material mix, design requirements and production complexity), production and delivery lead-time as are agreed in writing between the relevant member of the Group and the relevant member of the HSH Group. Payment Term: HSH will pay to the Company the total amount for each order in the currency specified in the quotation issued by the Company to HSH by cheque or by electronic transfer or by directly depositing funds into such bank account specified by the Company within 30 days after the date of the relevant invoice.