Amuse Group Holding Limited on 15 January 2021 entered into a non-legally binding memorandum of understanding with 90Husheng. The Company and 90Husheng are in the process of discussing possible ways of cooperation which may include (i) the formation of a joint venture between the Company and 90Husheng; or (ii) the Company's investment in 90Husheng. The Group is principally engaged in design, marketing, distribution and retail sales of toys and related products. Whilst remaining focused on developing its existing principal businesses, the Group has been exploring new potential projects from time to time in order to diversify its business as well as broaden the income source of the Group and eventually to maximise the returns to the Shareholders. The Directors are of the view that the cooperation is a good opportunity for the Group to invest in a developing industry with potential which may diversify the Group's portfolio of businesses. Having considered the above, the Directors consider that the terms of the MOU are fair and reasonable and are in the interest of the Company and the Shareholders as a whole. The MOU does not constitute any legally binding commitment in respect of the Possible Cooperation, save and except that each party agrees to be legally bound by certain confidentiality clause pursuant to the MOU. The Possible Cooperation is subject to the negotiation and execution of the formal agreement(s) between the relevant parties, if any.