This is a voluntary joint announcement made by Modern Dental Group Limited ("Modern Dental", together with its subsidiaries, "Modern Dental Group") and Arrail Group Limited ("Arrail", together with its subsidiaries, "Arrail Group").
The board of Modern Dental Group and Arrail Group announced that on 10 May 2022, Modern Dental and Arrail entered into a memorandum of understanding on strategic cooperation (the "MOU"). Pursuant to the MOU, Modern Dental and Arrail intend to collaborate with each other (the "Collaboration") so as to bring mutual benefits to each other, and it is noted by the parties hereto that the Collaboration may be in the form of, including but not limited to:
establishment and promotion of strategic partnership between the parties, including but not limited to Modern Dental's QJ Smile and TrioClear; QJ Smile, TrioClear and Arrail become official business partners in which QJ Smile would introduce consumers to the dental clinics and/or hospitals of Arrail while Arrail would provide the clinic services to support the businesses of QJ Smile and TrioClear; joint development of cooperative model(s) with a view to maximizing the returns of the parties;creation of integrated channels for the pooling of relevant resources of the parties; and such other equity and operational investments in pursuit of mutual interests of the parties. The Board believes that as a result of the strategic cooperation, both parties will be able to share and synergize upon, amongst others: (i) their respective portfolios of world-class dental products, services and solutions, (ii) their respective indepth knowledge of the Mainland China dental market, (iii) their respective reputations andleading positions in the Mainland China, and (iv) their respective determination and commitment to bring the premium dental services and products to the general publicin the Mainland China. With this cooperation in mind, both Modern Dental Group and Arrail Group would be well-positioned to leverage their respective expertise and to further expand businesses across the Mainland China.