HAO BAI INTL (08431) has signed a memorandum of understanding with Hu Jianyong to establish a joint venture company.

HAO BAI INTL (08431) announced that its wholly-owned subsidiary, China Bentley Investment Limited, recently entered into a non-legally binding memorandum of understanding with Mr. Hu Jianyong (the contracting party). The memorandum covers focusing on establishing a development center, information technology services, and artificial intelligence in China, as well as cutting-edge technologies such as cloud computing, digital currency, and digital product development. Both parties plan to establish the Hu Zhong Zhi Suan Group Limited together. The contracting party confirms that after signing the memorandum of understanding, they will sign a formal joint venture agreement based on the terms of the memorandum and the actual development of the project. The contracting party aims to utilize their respective resources, expertise, and experience to develop information technology and artificial intelligence services. The Group is mainly engaged in providing design, procurement, and installation services for water circulation systems, including swimming pools, fountains, and water curtain walls. Throughout the year, the Group has been actively seeking investment opportunities in the construction industry to further enhance its influence and increase its market share. The Board believes that the framework provided by the joint venture agreement based on the memorandum of understanding allows the Company to collaborate with Mr. Hu on joint venture projects and further expand the Group's construction business to achieve business diversification. The Board considers that the joint venture agreement proposed under the memorandum of understanding is part of the Company's routine business processes, and the terms of the joint venture agreement are based on normal commercial terms, fair, and in the overall interest of the Company and its shareholders.