The board of directors of the China Silver Technology Holdings Limited announced that on 30 May 2022, the Company entered into a non-legally binding memorandum of understanding (the "Memorandum of Understanding") with Hong Kong Bodili Holding Group Limited (Bodili Holding) with the view to forming a strategic alliance on the co-development of artificial intelligence, robotics and industrial automation (the "Proposed Cooperation"). Based on the information provided by Bodili Holding, (a) it is a company established in Hong Kong; (b) it is in the process of acquiring a company established in the People's Republic of China (the "PRC") which is principally engaged in the design, manufacturing, distribution, import and export of robotic machineries for industrial processes; and (c) its ultimate beneficial owner is Mr. Zhou Lu Di "Mr. Zhou"), a PRC national and merchant. To the best knowledge, information and belief of the Directors having made all reasonable enquiries, each of Bodili Holding and its ultimate beneficial owner (i.e. Mr. Zhou) is a third party independent of and not connected with the Company or its connected persons (as defined in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, the "Listing Rules").

The Proposed Cooperation is subject to further negotiation of detailed terms of cooperation and the signing of formal binding agreement(s) within ninety (90) days after the date of the Memorandum of Understanding (or such longer period as extended by mutual agreement between the parties) (the "Exclusivity Period"). Bodili Holding has agreed not to negotiate with any other third parties during the Exclusivity Period with the view to entering into any other cooperation, joint venture, issuance or transfer of shares or securities convertible into shares, or any other transactions outside its ordinary course of business which may have the effect of frustrating the purpose of the Memorandum of Understanding and the Proposed Cooperation with the Company. Save and except the clauses regarding exclusivity, confidentiality, governing law and jurisdiction which are legally binding, all other provisions of the Memorandum of Understanding are non-legally binding.