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ANXIAN YUAN CHINA HOLDINGS LIMITED
(incorporated in Bermuda with limited liability)
(Stock Code: 00922)
LAPSE OF MEMORANDUM OF UNDERSTANDING
USE OF PROCEEDS OF THE RIGHTS ISSUE
References are made to Anixan Yuan China Holdings Limited's (the "Company") announcement dated 25 March 2020, circular dated 29 April 2020 (the "Circular") and prospectus dated 8 July 2020 in relation to, among others, the entering into of the MOU and the Rights Issue. Unless otherwise stated, capitalised terms used herein shall have the same meanings as those defined in the Circular.
LAPSE OF THE MOU
On 14 March 2020, Anxian Yuan Zhejiang and the Partners entered into the MOU in relation to possible investment by Anxian Yuan Zhejiang in 阜陽市天壽園陵園管理有限公司
(Fuyang Tianshouyuan Cemetery Management Co., Ltd.*) by way of capital injection and its development of a commercial cemetery（經營性公墓）, subject to the entering into of the
formal agreement. According to the MOU, Anxian Yuan Zhejiang and the Partners should enter into the Formal Agreement within six months from the date of the MOU. The Board wishes to inform the Shareholders that the Formal Agreement was not entered into between Anxian Yuan Zhejiang and the Partners by 13 September 2020, being the expiry date of the aforesaid six months period, as Anxian Yuan Zhejiang and the Partners were unable to reach an agreement on the terms of the Formal Agreement after negotiations in good faith during such period. Accordingly, the MOU has lapsed on 13 September 2020 and the parties thereto will no longer pursue the investment in the Target Company. The Board considers that the termination of the MOU will not have any material adverse impact on the business operation and financial position of the Group.