China Regenerative Medicine International Limited announced that on March 22, 2021, the company entered into non-legally binding memorandum of understanding with Jinxin Holdings Co Ltd. in relation to possible joint development of a healthcare industrial park in the People's Republic of China. Jinxin has formed Changzhou Zhongzaisheng Healthcare Industry Development Company Limited for the purposes of developing a healthcare industrial park in the PRC. Pursuant to the MOU, it is intended that the company shall have the right to invest in an aggregate total of up to 50% equity interest in the Target Company; and the Group shall be responsible for, among others, construction design, brand building and introduction of customer, while Jinxin shall be responsible for, among others, tender for land, construction and operation of the industrial park. The MOU is valid for the period of twelve months from the date of execution, during which, the Company has exclusive rights to negotiate with Jinxin in relation to the Possible Investment. The MOU does not create legally binding agreement and obligations on the parties in relation to the Possible Investment but is legally binding as to terms relating to confidentiality, exclusivity, expenses and governing law contained therein. Jinxin is a limited liability company incorporated in the PRC which is principally engaged in real estate development covering various sectors including healthcare and hospitality. The Target Company is a limited liability company incorporated in the PRC and is wholly-owned by Jinxin. The Target Company's scope of business includes real estate development, construction, healthcare consultancy services, residential and non-residential leasing, and property management. Jinxin is held as to 91% by Mr. Wu Weiliang, who resigned from his post as a non-executive Director of the Company on December 29, 2020. Accordingly, any transaction entered into between the Company and Jinxin or the Target Company may constitute a connected transaction pursuant to the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited. The Group is principally engaged in research and development, production and sales of tissue engineering and regenerative medicine products, with its business scope spanning several sectors including tissue engineering, cosmetics, cell storage, preparation and therapy, and hospitals administration. A business strategy of the Group is to cooperate with PRC companies which will complement the Group's resources and strengths to improve the service level of the Company in the PRC. The Directors believe that cooperation with Jinxin on the development of a healthcare industrial park, if materialised, will enable the Group to expand its service level and channels within the PRC, and the real estate resources and industry experience of Jinxin will strategically complement the Group's resources and expertise in hospital administration in such cooperation.