The Board announced that on 23 April 2021, Ban Loong Holdings Limited entered into a non-legally binding MOU with Yunnan Baiyao Group, a connected person of the company, to establish a joint venture company which will be engaged in relevant businesses in the value chain and supply chain of industrial hemp (the "JV Company"). The JV company will take the form of a limited liability company to be formed in Yunnan Province, the PRC. Yunnan Baiyao Group and the Company will hold not more than 49% and not less than 51% equity interest in the JV Company respectively.

Upon formation of the JV Company, the financial results of the JV Company will be consolidated into the financial statements of the Group. The parties to the MOU agreed that Yunnan Baiyao Group will satisfy its portion of capital contribution by way of contribution of assets, including relevant facilities for research and development, plantation, extraction and processing of industrial hemp. The company will satisfy its portion of capital contribution by way of cash.