The Board of Directors of Hong Seng announced that HS Bio Supplies Sdn Bhd (HS Bio) has on 4 November 2020 entered into a Memorandum of Understanding (MOU) with Shijiazhuang Yiling Pharmaceutical Co., Ltd. (Yiling Pharmaceutical). HS Bio and Yiling Pharmaceutical shall hereinafter be collectively referred to as the "Parties" and individually referred to as a "Party". Pursuant to the MOU, Yiling Pharmaceutical intends to authorise HS Bio to act as their agent in Malaysia to obtain the relevant approvals for their therapeutic and health related products from Malaysia's Ministry of Health ("MOH") on behalf of Yiling Pharmaceutical. HS Bio is currently engaged in the business to provide pharmaceutical, medical and healthcare supplies such as medicine, medical consumables, bio supplies, medical equipment or devices, test-kits, vaccines, supplements, and other pharmaceutical, medical and healthcare related products as well as healthcare related services in addition to the supply chain management services for the healthcare industry. Yiling Pharmaceutical is a company incorporated under the company laws of People's Republic of China with its principal place of business in Shijiazhuang, Hebei, China. Yiling Pharmauceutical is a national key high-tech enterprise and specialising in producing therapeutic and health related products. The company is also highly recognised by the Ministry of Science & Technology of People's Republic of China and was awarded the "Pioneering Industrialisation of China Traditional Chinese Medicine ("TCM") Science & Technology Achievement". Yiling Pharmaceutical has researched and developed scientific and technological TCM, western medicine and biologics with modern high-tech as well as more than 10 national patented new drugs covering such major fields as cardiac and cerebral blood disease, influenza and respiratory disease, tumor, diabetes mellitus, which were authorised by Good Manufacturing Practice and production workshops of chemical agents authorised by European Union that guaranteed high quality standards. The purpose of the MOU is to facilitate the collaboration between the Parties in which Yiling Pharmaceutial agrees to authorise HS Bio to act as their agent in Malaysia to obtain the relevant approvals for their therapeutic and health related products from MOH on behalf of Yiling Pharmaceutical ("Approval"). Upon obtaining the Approval, Yiling Pharmaceutical shall enter into non-exclusive distributor agreement with HS Bio relating to the distributorship of their products. The MOU shall be effective on the date of the MOU and shall continue to remain valid for a period of eight (8) months unless terminated by the Parties in accordance with the terms and conditions of the MOU.