The board of directors of Oppstar announced that the Company had on 13 July 2023 entered into a memorandum of understanding ("MOU") with Chen Junhua and Shenzhen City Yixin Investment (Limited Partnership) ("Yixin") with an intention to jointly establish an investment holding company ("Holding Company") and an integrated circuit ("IC") related product company ("Technology Company") to be based in Shanghai, China. Chen Junhua, Oppstar and Yixin are collectively referred to as the "Parties". The salient terms of the MOU are set out below: Holding Company.

Chen Junhua,Oppstar and Yixin will jointly establish the Holding Company in Shanghai for the purpose of investing in companies in the IC industry. Paid-up Capital: RMB 10.0 million. RATIONALE OF THE MOU.

Currently, Oppstar and its subsidiaries ("Oppstar Group") are principally involved in the provision ofIC design services where the Group develops intellectual properties (" IPs") within an IC and these IPs are owned by its customers. The MOU will allow the Parties to leverage on each other's strengths and expertise and allow the Parties to develop and co-own the IPs. This will potentially create an additional revenue stream for the Oppstar Group.