C ZENITH CHEM(00362):Enter into a strategic investment framework agreement

C ZENITH CHEM (00362) announced that on November 18, 2024, the company entered into a strategic investment framework agreement with three companies incubated by Suzhou Chuyi Enterprise Management Co., Ltd. (Suzhou Chuyi): Hubei Yidong Yimei Management Co., Ltd. (Yidong Yimei), Hubei Daohe Industrial Development Co., Ltd. (Daohe Industrial), and Farfod Catering Management (Beijing) Co., Ltd. (Farfod). According to the framework agreement, Yidong Yimei, Daohe Industrial, and Farfod have agreed to collaborate with the company and commit to making strategic investments in the company to support its business development in accordance with the regulations of the Hong Kong capital market and certain conditions. In different cooperation stages, it is expected that Yidong Yimei, Daohe Industrial, and Farfod will make strategic investments in the company of not less than USD 20 million, including but not limited to subscribing and issuing notes, bonds, convertible bonds, and/or share placements and other debt and equity investments depending on the market conditions and capital utilization. Yidong Yimei focuses on the non-invasive anti-aging field and has innovated a rapid anti-aging effect by applying externally on the face, which is well received in the market. Daohe Industrial is an innovative and platform-type company specializing in the health industry focusing on head health management. It is a global chain organization integrating brand building, product research and development, business model operation, and professional team training and output. The company is committed to helping every entrepreneur, employee, and consumer achieve both health and wealth. Under the brand FARFOD, Farfod's 9.9 selection bakery is co-founded by the world bread champion Lin Yiqiang and microbiological fermentation expert Bai Donghai. Farfod's innovative business model of bakery + beverages (fresh milk, brewed yogurt, and trendy coffee) and comfortable shopping experience + novel innovative products are highly recognized in the market. The board of directors believes that in order to expand into the mainland Chinese market, entering the health and consumer industries, all parties can utilize their respective strengths, resources, and expertise to establish stable and mutually beneficial strategic cooperation relationships. The framework agreement is in line with the company's overall development strategy, allowing the company to seize any potential business and investment opportunities and align with the overall interests of the company and its shareholders.