United Food Holdings Limited announced that the company had entered into a Cooperation Framework Agreement with Shenzhen Shareihome Technology Co. Ltd. on April 22, 2021 in relation to the development of equipment production, automation technology and marketing on internet of Things. Following detailed discussions with SST as well as preliminary due diligence conducted and notwithstanding the preliminary terms of the Agreement, the Board announced that the company has placed a sum of RMB 35 million as security deposit to SST pursuant to the terms of the Agreement for the purpose of facilitating the rollout of the potential business cooperation. The entry by the company into the Agreement is part of its strategy to broaden the relationship between the company and SST over time which may include establishing a long-term stable and comprehensive cooperative intelligence (agricultural intelligence) and a strategic alliance of the IoT industry, to achieve the strategic goals of resource sharing, complementary advantages, and promotion of development between the two parties. With the cooperation framework, it would allow enhancement of the principles of equality, mutual benefit, and win-win cooperation including consensus reached through friendly consultations. Subject to the satisfaction of the due diligence exercise to be carried by the Group's engaged professional valuer, the Company's right of conversion of security deposit of RMB 35 million into equity interest in the capital of SST shall be contingent upon the Company obtaining all relevant approvals (including from its shareholders).