The board of directors of Ocean Star Technology Group Limited announced that on 29 December 2023, the Company entered into a strategic cooperation framework agreement with Hang Zhou Guan Tian Xia Jian Kang Chan Ye You Xian Gong Si (Hangzhou Guantianxia Health Industry Company Limited) in respect of the potential strategic business cooperation between the Parties (the Strategic Cooperation), subject to the terms and conditions of formal and legally binding formal agreement(s) (the Formal Agreement(s) to be entered into separately. Pursuant to the Framework Agreement, the Parties agree to enter into the Strategic Cooperation to develop and promote health care management and consulting services and sell health and wellness products (including the Group's body shaping underwear products) in the People's Republic of China (the "PRC"). The Framework Agreement is valid for a term of one year upon execution of the Framework Agreement.

The Group is one of the leading retailers of lingerie with shaping functions in Hong Kong, with production facilities in the PRC and Hong Kong. The Group is principally engaged in the designing, manufacturing and sales of core lingerie products under the core brand of "Bodibra" and sub-brands, namely "June", "ooobiki", "Bodicare" and "invisi". The Group principally offers a wide range of its own branded lingerie that are designed with shaping functions which aim to achieve better body appearances, including bras and panties, body shaping underwear and chest support vests.

In view of the fact that the PRC government has clearly stated that the health of the people is an important symbol of national prosperity and national strength, it has consistently placed the protection of the people's health in a strategic position of priority development, implemented enhancement of per capita funding subsidies for basic public health services, and vigorously developed Internet diagnosis and treatment and telemedicine services. "Healthy PRC" has become an important development strategy of the PRC, so the "big health" industry of the PRC has good development prospects. Hangzhou Guantianxia has extensive experience and operational capabilities in this field.

This Framework Agreement is in line with the Group's business strategy of exploring business opportunities, investing in potential business opportunities and enhancing the value of the Company. By leveraging on the Group's experience in the retail of body shaping underwear products and brand awareness and e-commerce business mainly in Hong Kong, together with the extensive experience of Hangzhou Guantianxia in the field of remote health care management and consulting services, Chinese medical and health care services and Internet sales, the Group expects the Strategic Cooperation will allow synergetic effects, which will not only enhance the brand awareness of the Group's lingerie brands in the eastern part of the PRC, penetrating the lingerie market in the eastern part of thePRC, but also provide the Group with valuable opportunities to develop the "big health" related business of remote health care management and Consulting services in the east part of the PRC and enhance the brand awareness of Hangzhou Guantianxia and strengthen its business development trend, achieving mutually beneficial effects. The Board anticipates that the Strategic Cooperation will enable the Group to explore the lingerie market and develop the "big health" business in the eastern part of the company and to diversify its business base to increase revenue sources, enhance the Group's profitability and deliver long-term value to the Group.

Accordingly, the Directors are of the view that entering into the Framework Agreement is in the interest of the Company and the Shareholders as a whole.