Million Stars Holdings Limited announced that on 4 April 2023, the Company entered into a memorandum of understanding on strategic cooperation with Cangzhou Deneng Pharmaceutical Co. Ltd. Pursuant to the MOU, the Company and the Strategic Partner intend to collaborate with each other so as to bring mutual benefits to both parties, and the collaboration may be in form of, including but not limited to: the Company and the Strategic Partner become official business partners to support each other and to explore the effective use and integration of their respective advantages in technology, talents, and resources to extensively cooperate in the field of digitally-empowered medicine and healthcare and achieve the goal of ``complementary advantages and joint development'. Possible formation of a joint venture between the Company and the Strategic Partner to incorporate the technologies possessed by both parties into each other's products; and pooling of relevant resources of the parties to establish other cooperative model(s), aiming to maximise each other's benefits.

The MOU shall be effective for a period of one year commencing from the date of the execution of the MOU, unless terminated by not less than one month's prior written notice to the other party prior to the expiration of the term of the MOU. The Group is a conglomerate, which was principally engaged in internet advertising agency services, the build-up and operation of a digital empowerment platform, and the digital assets business. The Group's business strategy is to consider promising businesses and investment opportunities from time to time to add value to the Company in its core businesses.

The Board is of the view that the MOU is in line with the Group's strategy of exploring new business opportunities. The transactions contemplated under the MOU, if materialized, are expected to bring new profit growth driver(s) to the Group, which is in the interest of the Company and its shareholders as a whole.