The board of directors of SFund International Holdings Limited announced that on 21 September 2020, the Company and Cedar Industrial Group Co. Ltd. entered into a strategic cooperation framework agreement in respect of the possible business cooperation between the Company and Cedar and the possible acquisition of interests in the Target Company by the Company, subject to the terms and conditions of a formal agreement. Pursuant to the Strategic Cooperation Framework Agreement, the Company and Cedar mutually agreed to cooperate in the financial business including the management of supply chain, financial service, cultural tourism and cooperation fund. The Company shall cooperate with the subsidiary of Cedar which is engaged in, including but not limited to, management of supply chain (the "Target Company") through capital injection or other means. The Target Company shall be determined based on the negotiations between the parties. Upon completion of the Possible Acquisition, the Company shall hold a controlling stake in the Target Company and consolidate the financial statements of the Target Company into the consolidated financial statements of the Group. If the Possible Acquisition is materialised, valuation on the Target Company shall be conducted by an independent third party and be used as the basis for the consideration, details of which shall be confirmed in the Formal Agreement.