Hong Seng Consolidated Berhad's announcements made on 4 November 2020, 9 November 2020, 18 March 2021 and 18 June 2021 in relation to the Memorandum of Understanding (MOU) entered into between HS Bio Sdn. Bhd. (formerly known as HS Bio Supplies Sdn. Bhd.) (HS Bio) (a wholly-owned subsidiary of the Company) and Shijiazhuang Yiling Pharmaceutical Co., Ltd. (Yiling Pharmaceutical) (Announcements), and unless otherwise defined, the definitions set out in the Announcements shall apply herein. Further to the Announcements, the Board wishes to inform that the Parties to the MOU have mutually decided not to renew this particular MOU as this MOU was intended for the Parties to obtain the relevant approval from the Ministry of Health Malaysia (MOH) for the registration of Yiling Pharmaceuticals therapeutic product (i.e. Lianhua Qingwen Capsule) in Malaysia after the product successfully obtained approval for use in Singapore, United States and some European countries. However, despite the Parties joint efforts, Malaysias health industry laws and regulation does not allow for the said product to be registered due to certain prohibited ingredients. As such, since the term of the MOU expired on 3 July 2021, the Parties have mutually agreed to terminate the MOU (Termination). The Termination will not have any material impact on the issued share capital, substantial shareholders shareholdings, net assets, gearing, earnings and earnings per share of Hong Seng Group for the financial year ending 30 September 2021. Nevertheless, the Parties are currently exploring to bring in other Yiling Pharmaceuticals products that may be relevant and beneficial for Malaysians.