The board of directors of Yoho Group Holdings Ltd. (the Company) informed the shareholders of the Company and potential investors that on 29 June 2022 (after trading hours), the Company entered into a non-legally binding memorandum of understanding (the "MOU") with EC Healthcare ("ECH") a proposed strategic partnership with ECH to accelerate the growth of medical, beauty and healthcare services in the e-commerce market in Hong Kong, subject to the terms and conditions of a formal agreement. Pursuant to the MOU, (i) the Company shall launch a dedicated online service zone for medical, aesthetic medical and beauty and wellness services, which is expected to accelerate the scale of marketplace operations of the Group, and also enable the services of ECH to reach a greater traffic flow with strong client synergy in the healthcare and beauty sector; (ii) the Company and ECH shall strengthen their co-marketing efforts to promote medical, aesthetic medical and beauty and wellness related products and services via the Group's online marketplace, in order to increase the overall sales volume and promote cross-selling of the products between both parties; (iii) the Company and ECH shall exchange know-how in precision marketing and consumer behaviour analysis in healthcare and beauty sector to deliver more comprehensive digitalized marketing strategy in improving the overall customer lifetime value; and (iv) the Company and ECH shall jointly develop e-commerce technologies and solutions across social and mobile commerce, data-driven marketing and fulfilment efficiency. The Company and ECH have agreed to join forces to boost the e-commerce penetration of medical, aesthetic medical and beauty and wellness services in Hong Kong.

The Board expects that the Proposed Strategic Partnership will (i) accelerate the growth of the Group's online marketplace operations; (ii) provide more competitive and diverse healthcare and beauty related offerings to the Group's customers and hence improve their satisfaction; (iii) enhance the Group's marketing efficiency and improve overall customer lifetime value; and (iv) strengthen the Group's technical capabilities. In view of the above, the Board considers that the MOU and the Proposed Strategic Partnership would be beneficial to and in the interests of the Company and its Shareholders as a whole.