The board of directors of Prosperous Printing Company Limited announced that on 24 June 2022, the Company entered into a non-legally binding memorandum of understanding with Xi'an Loves Trading Co. Ltd., in relation to the potential cooperation with the Prospective Partner for the development of convenience store business in the People's Republic of China (the "PRC") and the printing support of convenience store promotional materials. The Company and the Prospective Partner are in the process of discussing possible ways of cooperation, which may include (i) the formation of a joint venture between the Company and the Prospective Partner; or (ii) the Company's investment in the Prospective Partner.

It is intended that the Company will be responsible for providing printing and production services of promotional leaflets and general paper products to the convenience stores of Prospective Partner, while the Prospective Partner will be responsible for business operations of the convenience stores. Upon conclusion of the negotiation, a formal agreement will be signed between the parties. As at the date of the MOU, none of the material terms or the form of business cooperation has been finalised and no legally binding agreement in relation to the cooperation has been entered into between the parties.