The board of directors of Zhuguang Holdings Group Company Limited announced that on 16 May 2021, the company and Guangdong Zhuguang Group Company Limited entered into a strategic cooperation framework agreement for a term of ten years, pursuant to which the company and GZGCL agreed to cooperate in different aspects of property development projects, including the bidding of the land, the development of the projects, and the construction, marketing and management of the properties. Under the Strategic Cooperation Agreement, the Company and GZGCL will continue to perform the existing agreements in relation to urban renewal projects that the parties have already entered into, in accordance with the terms therein. In terms of new property development projects, the Company and GZGCL will determine the cooperation model of each project after having identified the target project and considered the strengths of each of the parties in connection with such project. Subject to their respective internal management and controls and the same terms being offered, the Company and GZGCL will give priority to the other party or the related entities of such other party when selecting a business partner for its own property development projects. The Strategic Cooperation Agreement merely provides a framework of cooperation between the company and GZGCL. The terms of cooperation contemplated under the Strategic Cooperation Agreement are subject to the terms of any definitive agreements which the Company and GZGCL may subsequently enter into from time to time subject to the negotiations between the parties. The Group is principally engaged in property development, property investment, project management, and other property development related services in the PRC. GZGCL is a reputable property development company well-established in the Guangdong-Hong Kong-Macau Greater Bay Area, which has tremendous resources and experience in property development and urban renewal property projects in the PRC. To the best of the knowledge, information and belief of the Directors having made all reasonable enquiry, each of GZGCL and its ultimate beneficial owners is a third party independent of the Company and the connected persons (within the meaning of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited) of the company.