The board of directors of China Health Group Limited announced that, on 2 December 2022, the company and Wuhan Mingcheng Wangda Pharmaceutical Co. Ltd. (Mingcheng Wangda) have entered into a cooperation framework agreement, pursuant to which the Company and Mingcheng Wangda intend to have close cooperation in various ways for distributing medical one health products. Both parties thereto will further discuss the specific ways and scope of the cooperation, and may enter into relevant formal agreements in due course. Pursuant to the Framework Agreement, the Company intends to invest in and support the business development of Mingcheng Wangda. Based on Mingcheng Wangda's existing comprehensive distribution platform for medical one health products, the two parties will give full play to their respective resource advantages, to jointly build an international comprehensive distribution
platform that includes offline entities and online e-commerce. The Framework Agreement provides that Mingcheng Wangda shall not, without the written
consent of the Company, directly or indirectly discuss, negotiate, communicate, consult, confer with, talks or sign any memorandum of understanding, letter of intent, agreement, arrangement or similar legally binding document (whether legally binding or not) with any third party other than
the Company, or continue or allow any such negotiation or arrangement to continue for any period of time between the date of signing of the Framework Agreement and the date of delivering the formal agreement, if any, ninety (90) days from the date of signing of the Framework Agreement
or such later date on which the parties may otherwise agree in written or otherwise, whichever is the later. The Company is committed to providing quality medical product distribution and services for a larger customer base. Entering into the Framework Agreement further expands the coverage of the distribution business of the Company. Through the integration of resources and complementary advantages of both parties, it is conducive to the rapid development of the Company. The Board is of the view that the Framework Agreement is in the interests of the Company and its shareholders
as a whole.