The board of directors of the Hao Bai International (Cayman) Limited announced that, on 13 January 2023, the Company entered into a strategic cooperation agreement with Shenghuang Holding (Shenzhen) Group Company Limited in relation to a potential business cooperation in the jewellery business in the People's Republic of China. Pursuant to the Strategic Cooperation Agreement, the parties intend to establish a comprehensive strategic partnership to cooperate in the development of the Business, in particular, Shenghuang will be mainly responsible for the manufacturing of jewellery and the Company will be mainly responsible for the branding and marketing of the Business. The specific details and terms in relation to the development of the Business are subject to further negotiation between both parties.

As disclosed in the interim report of the Company for the six months ended 30 September 2022, the Group has continued to see positive results in business activities in the PRC and intends to expand its business operations into the Greater Bay Area. As such, the Group has been seeking business opportunities for joint venture, business collaboration and investment in the Greater Bay Area. The Board is of the view that the Strategic Cooperation represents valuable business opportunities for the Group to expand its source of income by expanding the business scope.

The Group is expected to benefit through the combination of Shenghuang's expertise in the manufacture of jewellery and the Group's provision of branding and marketing services, thereby creating a synergy to promote and develop the Business in the PRC market. Accordingly, the Board considers that the entering into of the Strategic Cooperation Agreement is in the interests of the Company and the Shareholders as a whole.