[Caihua Social News] Fuying Global Group (01620.HK) announced that on January 10th, 2022, the Group has (through its wholly-owned subsidiary CIGStudyTourLimited) entered into a non-legally binding Memorandum of understanding (MOU) with the "potential partner" of Dongguan Diko Research Tourism Culture Co., Ltd., relating to the potential tourism business cooperation (including sharing customers and supply chain and other resources) equal to Guangdong-Hong Kong-Macau Greater Bay Area, in order to achieve business expansion.
According to the Memorandum of understanding, potential cooperation will not be confirmed until the parties concerned have entered into a formal agreement for further consultation. If the parties fail to enter into a formal agreement on or before 30 June 2022, the Memorandum of understanding will expire and terminate, and all rights and obligations of the parties (except those provided for under previous violations and general provisions such as jurisdiction law and confidentiality) shall cease to have effect on termination. As at the date of this announcement, the terms and conditions of the formal agreement have not been implemented or agreed upon, and no legally binding agreement has been entered into. Potential cooperation may not take place.
It is expected that the potential cooperation (if implemented) will enable the Group to enter the Greater Bay area and establish its reputation and brand in the Greater Bay area, thereby expanding the Group's customer base and expanding the Group's revenue sources. Therefore, the Board is of the view that the conclusion of a memorandum of understanding is in the overall interests of the company and its shareholders.