The board of directors of China Supply Chain Holdings Limited announced that on 15 March 2022, the Company entered into a non-legally binding strategic co-operation framework agreement with Shenzhen Baima Yiwu Technology Company Limited in respect of potential co-operation in the development, optimization and upgrade of new retail consumer goods supply chain management platform in the People's Republic of China. THE PROPOSED COOPERATION The term of the Strategic Co-operation Framework Agreement is three years from the date of the Strategic Co-operation Framework Agreement, which can be terminated by either party by giving three months' prior written notice to the other party. Pursuant to the Strategic Co-operation Framework Agreement, the Group and Baima Yiwu Group aim to jointly develop, optimize and upgrade the supply chain management platform for the new retail consumer goods industries, which can provide one-stop supply chain management services to enterprises through a S2B2C (supplier-to-business-to-consumer) system, facilitate enterprises to reach out to upstream suppliers and downstream customers and enhance the sales and distribution of related products.

In particular: each party shall make full use of its respective advantages in terms of resources and facilitate the system optimization of the new retail brand supply chain and related products business, and upgrade and expand the existing new retail brand supply chain business; Baima Yiwu shall provide and share its existing connections and supply and sales networks with the Company, and be responsible for conducting marketing activities of new retail consumer brands in accordance with co-operation plans to be agreed between the Company and Baima Yiwu; and the Company shall provide and share its existing connections with Baima Yiwu, leverage on its capital capabilities, and consider investing in the upstream, midstream and downstream sectors of the new retail consumer brand industries in light of the market conditions and in accordance with its business strategies.