The Cooperative Agreement was entered into between the Leyou Technologies Holdings Limited and MEGA on 9 November 2018 pursuant to which the parties conditionally agreed to enter into a joint arrangement for the development, operation and maintenance of five specific video games, namely Game A, Game B, Game C, Game D and Game E. The Cooperative Agreement was subsequently supplemented and amended six times, resulting in, among other things, Game C being removed from the scope of the Cooperative Agreement and the parties agreeing to negotiate in good faith the terms of their cooperation in respect of the Remaining Games. However, after amicable discussions and due consideration of (i) the change to the portfolio of games subject to the Cooperation (with the removal of Game C), (ii) the changes in costs and benefits to the parties and their respective commercial rationale for entering into the joint arrangement, (iii) the continuing development of the Remaining Games which have progressed differently from that initially envisaged by the parties due to the non- commencement of the Cooperative Agreement and (iv) the substantial amount of time elapsed since the entering into of the Cooperative Agreement, the parties have decided not to proceed with the joint arrangement as any further negotiation on the terms of their cooperation of the Remaining Games would probably be futile and the condition precedent for the Cooperative Agreement to have effect would not likely be satisfied before the Long Stop Date. Accordingly, on 26 June 2020, the Company entered into a termination agreement with MEGA, pursuant to which the parties agreed to terminate the Cooperative Agreement with immediate effect. The Board considers that the termination of the Cooperative Agreement would not have any material adverse impact on the existing business operation and financial position of the Company. As the Cooperative Agreement has been terminated, no EGM will be convened and held by the Company for the Independent Shareholders to consider and approve the Cooperative Agreement and the transactions contemplated thereunder and no circular will be issued by the Company.