The board of directors of EC Healthcare informed the shareholders of the company and potential investors that on July 29, 2021, the company signed a memorandum of understanding with Prenetics Limited for a proposed strategic partnership in relation to a "healthomics collaboration", which focuses on assembling health data resources from the Company and innovative genetics and diagnostic testing services from Prenetics to create the future of medicine, steering the development in preventive medicine, precision medicine, drug discovery and health policies of governments. Pursuant to the MOU, (i) the Company shall be the designated offline fulfillment partner of Prenetics's online business; (ii) the Company shall be granted the exclusive license to market and sell certain genetic testing products of Prenetics under the CircleDNA and Circle Medical brand in the Greater Bay Area; (iii) the company shall be the marketing and operational partner to promote the Products; and (iv) the Company and Prenetics shall jointly develop necessary IT solutions to enhance the integration of health data and genomics data resources. Prenetics is principally engaged in the provision of genetics and diagnostic health testing services, operational in 10 countries.

The company, based in the Greater Bay Area, is the large non-hospital medical service provider in Hong Kong (according to Frost & Sullivan's data and based on the Company's unaudited revenue for the calendar year of 2020), providing medical, aesthetic medical and healthcare services. It is expected that the Collaboration will (i) provide a new source of income to the Group; (ii) provide a new source of clientele for the Group's existing businesses; and (iii) enhance the loyalty of the Group's existing customers by complementing the scope of preventive and precision medical services currently provided by the Group. In view of the above, the Board considers that the Collaboration under the MOU would be beneficial to and in the interests of the company and the Shareholders.