The Board of Yu Tak International Holdings Limited announced that, on 3 November 2023, the Company entered a framework agreement (the "Framework Agreement") with Shengben Holdings (Hainan) Group Company Limited ("Shengben"), a company incorporated in Hainan Province, the People's Republic of China (the "PRC"). Pursuant to the Framework Agreement, the Company and Shengben will form an equity joint venture in Dezhou City, Shandong Province, PRC for share capital of HKD 5,000,000 (Five Million Hong Kong Dollars) where the Group will hold 51% of the beneficial interest in the Joint Venture by contributing share capital of HKD 2,550,000 (Two Million Five Hundred and Fifty Thousand Hong Kong Dollars) and Shengben will hold 49% the beneficial interest of the Joint Venture by contributing amounts of Renminbi equivalent to HKD 2,450,000 (Two Million Four Hundred and Fifty Thousand Hong Kong Dollars). The Joint Venture will be dedicated to the digital healthcare and medicine-food homology ("MFH") industries.

Scope of business covers promotion and sale of home-use electronic medical devices and MFH products, interactive services of online health advisory platforms, health management and the collections and analyses of big data on the efficacy of its products. The concept of MFH originated in China, emphasizing that medicine and food originated at the same time. Many of the foods represented by herbs are both edible and medicinal.

Around the world, the concept has been recognized and welcomed by many people pursuing natural health remedies, and it has become a new dietary trend in the post-pandemic era. The combination of digital healthcare and millennia-old dietary therapeutic wisdom is expected to give new energy to the health industry in the new era. While Shengben will be responsible for the day-to-day operations of the Joint Venture, the Group will leverage on its existing sales networks and help explore Hong Kong and overseas markets and raise funds that required for expansion in the future.

The Joint Venture is expected to commence business in January 2024. Through the Joint Venture, the Group will be taking a further step for expanding the Group's business segment established in 2022. The Board believes that businesses of the new Joint Venture will have synergies with existing operations and businesses networks that help further enhance profitability of the Group.