Reference is made to the Company’s announcements dated 8 March 2022, 27 April 2022 and 29 July 2022 in relation to the Strategic Framework Partnership Agreement and the Company's announcement dated 31 October 2022 in relation to the definitive agreement with Shaoxing City Government and Cheerplan (China) Investments Co. Ltd. Unless otherwise stated, all defined terms used in this announcement shall have the same meanings as those used in the abovementioned announcements made by the Company on 8 March 2022, 27 April 2022, 29 July 2022 and 31 October 2022.

The Board of Directors of the Company wishes to inform that after negotiation with the Parties, it is agreed that the Company shall not proceed with the equity investment of 24% of the JV Co, instead the Company has the option to invest at the later stage. It is agreed that the Company shall continue to participate in the business of the JV Co as planned.

There will be no material effect on the earnings per share, net assets per share and gearing of the Company for the financial year ending 31 May 2023.

The announcement is dated 19 January 2023.