Item 1.01 Entry into a Material Definitive Agreement.
On August 16, 2022, the Company's wholly owned subsidiary Meizhong Health
Industry Development Co., Ltd. ("Meizhong") entered into a Cooperation Agreement
with Qiyu Nanjing Enterprise Management Co., Ltd. ("Qiyu") and Shaoxing Boyadi
Textile Co., Ltd. ("Boyadi"), among which, the three parties will jointly invest
in building the great health products trading market located in Huai'an City,
China, with a total investment of 20 million RMB.
Upon execution of this Agreement, a joint venture will be established by the
three parties, with a registered capital of 1 million RMB, of which Meizhong,
Qiyu, and Boyadi will account for 42%, 28% and 30% of the joint venture,
respectively. Meizhong shall be responsible for preparing the application
material package for obtaining valid approvals for the project from the
competent governmental authorities, planning, construction, management,
production operation, raw materials purchase and products sale of the project,
carrying out the operations and investment promotion efforts, etc.; Qiyu and
Boyadi shall be responsible for raising funds for the entire project and
conducting capital operation of the project, assisting Meizhong in investment
promotion efforts, communicating with the local governmental authorities and
trying to get preferential policies.
The term of this joint venture shall be five years, upon expiration, the period
may be extended for another five years.
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