Millennium International : Announces Strategic Actions to Enhance Operational Efficiency And Cost Reduction

Streamlining Operations and Maximizing Margins through the Consolidation and Wind-Down of Yee Woo Paper Industry (Shenzhen) Co., Ltd.

HONG KONG, May 02, 2024 - Millennium Group International Holdings Limited (Nasdaq: MGIH) (the "Company" or "Millennium"), a well-established supplier of paper-based packaging solutions, announced the initiation of strategic actions, including the voluntary liquidation of Yee Woo Paper Industry (Shenzhen) Co., Ltd. ("YWSZ") and consolidating part of the YWSZ operations into Millennium Printing (Shenzhen) Company Ltd. ("MPSZ"). This effort is expected to optimize the Company's production footprint, enhance efficiency and reduce costs.

As a Shenzhen, China-based subsidiary company of Millennium, YWSZ specialized in manufacturing corrugated paperboard and flexographic paper packaging boxes. However, YWSZ's business performance has significantly declined since the beginning of 2023 due to various factors, including the ongoing SinoUS trade tension, the lingering effects of the pandemic, rising shipment costs exacerbated by geopolitical conflicts, and overall economic conditions.

As a result of these challenges, the Company's management has decided to consolidate a portion of YWSZ's operations into MPSZ by installing similar manufacturing production lines. This consolidation, along with the simultaneous voluntary liquidation of YWSZ, aims to maximize the Company's production efficiency and minimize production costs.

Ray Lai, Chief Executive Officer of Millennium, expressed confidence in this strategic initiative, stating, "Our decision to consolidate YWSZ aligns with our commitment to efficiency and profitability. Through the consolidation of operations into MPSZ, we are poised to elevate our production capabilities while simultaneously driving down costs, thereby improving our profit margins and securing an even more dominant competitive edge in the paper packaging market."

"In the face of dynamic economic landscapes, we recognize the imperative to optimize our operations for sustainable growth. Our strategic decision underscores our dedication to prudent management and longterm value creation," said Matthew Lai, Chairman of Millennium. "By streamlining our manufacturing footprint and minimizing fixed costs and overhead, we position Millennium for greater profitability and flexibility, ensuring we remain agile and adaptive in a dynamic business environment."

The liquidation process is expected to take another six to nine months to complete, with estimated costs ranging from USD$4.9 million to USD$6.5 million, covering redundancy expenses, compensation, and losses from disposing of fixed assets, raw materials, and inventories. Further details on these costs will be disclosed in a future amendment to the Current Report on Form 6-K filed on April 25, 2024.

About Millennium Group International Holdings Limited

Founded in 1978, Millennium Group is a long-established paper-based packaging solutions supplier committed to providing creative and sustainable packaging solutions to worldwide brands. The Company manufactures packaging products and corrugated products, and provides packaging products supply chain management solutions for a wide range of industries. Headquartered in Hong Kong with operations in the PRC and Vietnam, the Company adopts a one-stop integrated service approach with an objective to cover the entire value chain of its customers, with the sales of its products to PRC, Hong Kong, Vietnam, Myanmar, Australia, Indonesia, Cambodia, Taiwan, Thailand, United States, India and Germany. For more information, please visit the Company's website: https://www.millennium-gp.com/

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