The Board of Yue Da International Holdings Limited announced that on 29 February 2024 (after trading hours), the Company as tenant and Yue Da HK as landlord entered into a termination agreement, pursuant to which the parties agreed to terminate the 2023 Tenancy Agreements (the Termination Agreement). Pursuant to the Termination Agreement, the 2023 Tenancy Agreements shall be terminated with effect from the date of the Termination Agreement and the parties agreed to unconditionally and absolutely release and discharge each other from all present and future obligations and liabilities, actual and contingent, known or unknown, anticipated or unanticipated, suspected or unsuspected, which arise out of or relate to, directly or indirectly, under the 2023 Tenancy Agreements and the parties shall have no claims against each other relating to the 2023 Tenancy Agreements. Due to the resources reallocation of the Company, the Company decided that the 2023 Tenancy Agreements should be early terminated.

In view that no compensation is payable by the Group for the early termination of the 2023 Tenancy Agreements, the Directors (including the independent non-executive Directors) consider that the Termination Agreement is entered into on normal commercial terms or better and in the ordinary and usual course of business of the Group, and the terms of the Termination Agreement are fair and reasonable and in the interests of the Company and its Shareholders as a whole.