The Board of China Creative Global Holdings Limited advised that, further to the First and Second Agreements, the Company has made further progress in negotiation with Bodili Holding and, on February 11, 2022, the company has entered into a joint venture agreement with Bodili Holding. Pursuant to the JV agreement, both parties have express their agreement to jointly setup and operate a Joint Venture company, namely China Creative Premier Products Limited in which the Company and Bodili shall take 60% and 40% interests respectively. As mentioned in the Company's announcement dated December 13, 2021, Bodili Group is conducting businesses of trading, design and production of robots and machinery in respect of the manufacturing operations.

Based on the Board's understanding, Bodili Group is one of the market leader in trading, design and development of the robots and machinery, CCPPL shall take up of Bodili Group businesses in Hong Kong and overseas markets. Subject to approval via Annual General Meeting of respective years, Bodili Group shall receive management share options if the revenue and profits targets for each of the year from 2022 to 2025, are both achieved satisfactorily at certain percentages. The sales and revenue targets for the year after 2025 shall be made in 2024 by both parties upon reviewing the prevailing economic and trade conditions.

In this respect, the Board believes that, through the businesses with Bodili Group, the joint venture will not only expand the Company's business and enhance its returns, but will also increase its market competitiveness in overseas markets. The Board is of the view that the setup of the said joint venture will maximise the future contribution to the Company and is in the interest of the Company and the shareholders of the Company as a whole.