The board of directors of Narnia (Hong Kong) Group Company Limited (the Company) announced that Huzhou Narnia Industry Co. Ltd. ("Huzhou Narnia") and Zixuan Culture Company Limited, a newly established entity, entered into a non-legally binding memorandum of understanding (the "MOU") on 9 February 2023 (after trading hours). Based on the terms of the MOU, the Company and Huzhou Narnia plan to initially invest not more than USD 10 million into the Target Company which is principally engaged in, among others, businesses related to general health and biological sciences (the "Potential Investment").

After the signing of the MOU, the Company and Huzhou Narnia shall be entitled to conduct a due diligence review on the Target Company during the period from the signing date of the MOU to 8 August 2023 (or such other dates as may be agreed by the parties thereto) (the "Exclusivity Period"). The Target Company shall procure the relevant parties to provide assistance in this regard. The Company and Huzhou Narnia have the exclusive rights to negotiate with the Target Company over other investors in respect of the Potential Investment during the Exclusivity Period.

The Company, Huzhou Narnia and the Target Company will proceed with further negotiation for entering into a formal and binding agreement (the "Formal Agreement") on or before 8 August 2023 (or such other dates as may be agreed by the parties thereto). Save and except the clauses relating to due diligence, exclusivity, confidentiality and dispute resolution which are legally binding, all other clauses of the MOU shall create no legal and binding obligations on the parties thereto.