On 28 January 2023, the Shandong Fengxiang Co. Ltd. and Falcon entered into the Loan Framework Agreement, pursuant to which Falcon will provide a revolving loan facility to the Group for a term of one year commencing from 28 January 2023 and ending on 27 January 2024. As at the date of this announcement, Falcon is the controlling shareholder of the Company directly holding over 70% interest of the Company's total issued share capital.

Accordingly, Falcon is a connected person of the Company and as a result, the transactions contemplated under the Loan Framework Agreement constitute continuing connected transactions of the Company under Chapter 14A of the Listing Rules. The interest rates payable by the Company to Falcon in respect of each loan provided under the Loan Framework Agreement shall be the annual rate of the aggregate of the following applicable rate: (i) forward-looking term SOFR administered and published by CME Benchmark Administration Limited (or any other person which takes over the administration of that rate), the term of which corresponds to the interest period; and (ii) a margin, which must not be a negative number and shall be equivalent to or not more than the rate at which the Group is able to borrow with the same amount in USD and conditions for a relevant loan and period from a bank or a financial institution on normal commercial terms. The time and manner of payment of interest rate shall be determined by Falcon and the Group after arm's length negotiation.