The board of directors of Min Fu International Holding Limited announced that on 22 August 2022, the company entered into a framework agreement (Framework Agreement) with Shenzhen Ludama Catering Management Co., Ltd. (Ludama, together with the Company, the Parties) in respect of strategic cooperation between the Parties for the development of smart food processing in the pre-prepared food market in the People's Republic of
China. The Cooperation: The Parties intend to establish a long-term strategic partnership through close communication, cooperation and resources sharing. The Parties aim to utilize their complimentary advantages of each other, particularly, the Company will apply its smart technology expertise and will provide technological supports in relation to smart management systems and smart food processing production line, in combination with Ludama's experience in food processing and offline retailing and its market resources, to further tap into the pre-prepared food market in the PRC and to jointly promote and achieve the extension and development of technology and services. The Parties shall assign specific personnel and deploy its resources from time to time to exchange market information and provide technological support in their respective field of expertise. Upon further negotiation, the Parties shall strengthen its cooperation by forming a joint venture for the development of, or by way of franchising of, the pre-prepared food businesses. The Company shall assume the role of smart technological support by providing its solution services in respect of smart management systems and smart food processing production lines, whereas Ludama shall leverage on its experience in food processing and retailing to provide support in respect of operation management and market resources. The Parties shall use its best endeavours to finalise and sign the formal agreement in respect of the Cooperation on or before 30 September 2022. In the event that the Parties fail to enter into the Formal Agreement on or before 30 September 2022, the Framework Agreement shall lapse and neither Parties shall have liabilities against the other thereafter, save for any antecedent breach of the Framework Agreement. Each of the Parties shall enjoy exclusivity in respect of the Cooperation and shall not negotiate with any party (other than the Parties) for the period from the date of the Framework Agreement and until 30 September 2022 (both dates inclusive).