The board (the "Board") of directors (the "Directors") of Morimatsu International Holdings Company Limited announced that on 29 July 2021, the Company entered into an investment agreement with the Administrative Committee of Changshu Economic and Technological Development Zone, a government agency entrusted by the People's Government of Changshu City which is responsible for the development, construction, operation and management of Changshu Economic and Technological Development Zone, pursuant to which, the Company plans to establish its high-end biopharma equipment manufacturing base project (the "Project") in Changshu Economic and Technological Development Zone. The Changshu Economic and Technological Development Zone is located in Suzhou, which is adjacent to the Group's Nantong production base and is known as the "Chinese Pharmaceutical Valley". The Project has a planned site area of over 200,000 square meters. The Administrative Committee of Changshu Economic and Technological Development Zone intends to allow the Group to use it in two phases by way of land use rights grant. Among which, Phase I of the Project has a site area of approximately 130,000 square meters and a total investment amount of approximately US$180 million, which is expected to be funded by the proceeds from the global offering of the Company, the operation income of the Group and bank loans, details of which will be determined when the Project plan is finalised. In addition, the commencement of Phase II of the Project is also subject to the circumstances. Through the Project, the Company plans to establish a new subsidiary in Eastern China, which will be principally engaged in the manufacturing of high-end intelligent equipment and complete sets of professional and precise equipment in the fields of biopharmaceutical, daily chemicals and electronic chemicals. Leveraging on the Group's advanced process and technology, and strong research and development capabilities in the biopharmaceutical sector, the Company will further consolidate its competitive advantages and bring high-quality digital and intelligent biopharmaceutical factory solutions to global customers.