The board of the directors of International Housewares Retail Company Limited (the Company) announce that in May 2021, the Group had formed a strategic business cooperation with Yoho Hong Kong Limited ("Yoho HK") by way of entering into a memorandum of understanding and a subscription agreement. On 18 May 2021, Japan Home Centre (H.K.) Limited ("JHC HK"), a wholly-owned subsidiary of the Company, entered into a memorandum of understanding (the "MOU") in relation to the strategic online-merge-offline business cooperation with Yoho HK. Pursuant to the MOU, JHC HK and Yoho HK will leverage their resources to collaborate across various aspects, including but not limited to marketing, warehousing services, distribution channels and information technology etc., with a view to delivering a superior online-merge-offline shopping experience to their customers. In particular, the parties to the MOU have agreed to cooperate with each other in the following respects (the "Strategic Business Cooperation"): JHC HK and Yoho HK will jointly provide benefits to their members and implement co-marking campaigns to expand their customer bases. JHC HK and Yoho HK will co-source inventory and collaborate with each other on logistics arrangements in order to improve their warehousing efficiencies and to offer a broader range of products to their customers. JHC HK will become an anchor merchant in the houseware and lifestyle category on the upcoming online marketplace of Yoho HK which would provide foundation for the development of Yoho HK's market place and help JHC HK to further promote its e-commerce presence and expand its reach to online shoppers. Leveraging on the Group's wide retail network in Hong Kong, JHC HK will provide pickup services to Yoho HK whereby online customers of Yoho HK may pick up their purchased goods at JHC HK's retail stores. Under this collaboration, JHC HK can generate regular income from the provision of pickup services and increase its customer flow at its retail stores while Yoho HK can expand its pick-up point network and provide convenience to its online customers. The MOU provides a framework for the Strategic Business Cooperation between JHC HK and Yoho HK. Further details of Strategic Business Cooperation are subject to the terms of any definitive agreement(s) which JHC HK and Yoho HK may subsequently enter into from time to time. As at the date of this announcement, JHC HK and Yoho HK have not entered into any definitive agreement in relation to any specific business cooperation project pursuant to the MOU.