The board of directors of Ming Lam Holdings Limited announced that after trading hours of the Stock Exchange on 10 January 2020, the Company entered into a memorandum of understanding (the "MOU") with a company (the "Vendor"). Pursuant to the MOU, the Company intends to acquire, and the Vendor intends to dispose the entire issued share capital of a wholly owned subsidiary of the Vendor (the "Target Company") (the "Possible Acquisition"). The Target Company is principally engaged in the business of packaging and printing in China. Principal Terms of the MOU: Date: 10 January 2020 (after trading hours); Parties: The Company; the Vendor; and To the best of the Directors' knowledge, information and belief having made all reasonable enquiries, the Vendor is a third party independent of the Company and its connected persons (as defined under the Listing Rules). Consideration: The consideration for the Possible Acquisition and the manner of payment shall be further negotiated between the Company and the Vendor and be determined in the Formal Agreement. Due diligence review: Pursuant to the MOU, the Company may conduct due diligence review on, including but without limitation, the assets, liabilities, business, operations and subsisting status of the Target Company upon signing of the MOU. The Vendor shall use their best endeavours to procure the Target Company and its agent to provide such assistance and information as is necessary for the Company to complete its due diligence review on the Target Company. Exclusivity: During a 3 months period after the date o execution of the MOU (or such other date as agreed between the Company and the Vendor in writing) (the "Exclusivity Period"), the Company have exclusive right to negotiate with the Vendor in relation to the terms of the Proposed Acquisition. During the Exclusivity Period, the Vendor shall not directly or indirectly negotiate or agree with any other party with respect to the disposal of the Target Company or any of its businesses. Formal Agreement: The Company and the Vendor shall use their best endeavours to procure a legally binding formal agreement in relation to the Possible Acquisition ("Formal Agreement") within the Exclusivity Period. The Company has the right to nominate one of its subsidiaries as the purchaser to enter into the Formal Agreement. Termination: The MOU will be terminated at the earlier of: the expiry of the Exclusivity Period; or the date of execution of the Formal Agreement.