The board of directors of Shunten International (Holdings) Limited announced that the Company entered into a cooperation framework agreement with Shijiazhuang Yiling Pharmaceutical Co., Limited on 30 December 2021 (after trading hours) in relation to the potential business cooperation between the Company and Shijiazhuang Yiling Pharmaceutical (the "Potential Business Cooperation") subject to the terms and conditions of the definitive and legally-binding agreement(s) (the "Formal Agreement(s)"). The Cooperation Framework Agreement shall be valid for two years from the date of the Cooperation Framework Agreement. Pursuant to the Cooperation Framework Agreement, the Company and Shijiazhuang Yiling Pharmaceutical have principally agreed to cooperate on the following aspects: Shijiazhuang Yiling Pharmaceutical will introduce the Group's products to Mainland China for distribution through cross-border e-commerce platform; Shijiazhuang Yiling Pharmaceutical will assist the Company to submit domestic product registration in Mainland China. Upon obtaining the registration approval, Shijiazhuang Yiling Pharmaceutical will become the agent of selling the Group's products in Mainland China; The Company will make use of the current 100,000 domestic pharmacies directly accessible to Shijiazhuang Yiling Pharmaceutical and the 300,000 pharmacies within the reach of intermediates, to conduct off-line sales in the 400,000 pharmacies combined; The Company will assist Shijiazhuang Yiling Pharmaceutical to submit product registration of certain products in Hong Kong. Upon obtaining the registration approval, the Company will have priority to obtain exclusive distribution rights of the relevant products in Hong Kong; Product sales and brand cooperation in Hong Kong: the Company will assist Shijiazhuang Yiling Pharmaceutical to register and sell the products of Shijiazhuang Yiling Pharmaceutical based on the current strategic cooperative distribution facilitator stores of the Group in Hong Kong, including an aggregate of approximately 550 physical stores and approximately 50 sales counters with in-store salespersons; The Company and Shijiazhuang Yiling Pharmaceutical will collaborate to set up medical service centers in Hong Kong through integration of the medical resources in Mainland China, including utilization of existing personnel and doctors of Shijiazhuang Yiling Pharmaceutical via telemedicine in order to promote the high-quality Chinese medical services in Hong Kong. The potential Chinese medical services to be provided to Hong Kong citizens includes cross-border telemedicine services, onsite medical consultation and diagnosis services, Chinese medicine prescription and dispensing services.