Orange Tour Cultural Holding Limited's board of directors announced that, on 21 November 2020, Orange Tour Cultural Investment Limited, a wholly owned subsidiary of the Company, and Lionheart Media Group Limited entered into a memorandum of understanding (the "MOU"), pursuant to which both parties agreed to explore possible cooperation with each other in the fields of media production, artist management and development. Media production: It mainly involves the planning, production and management of media content for ticket sales and media works as revenue source. The themes and formats of the media production are based on the needs of international markets without any specific restrictions. Artist management: It mainly involves the provision of management services to artists and earns commission as revenue source. Artist development: It aims to cultivate and manage its own artists group, and earns revenue from media production and management commission. The parties agree that the MOU shall be valid for twelve months (the "Validity Period") from the date of execution and each party is the exclusive partner of the scope of cooperation under the MOU. During the Validity Period, any of the parties who wants to terminate the MOU must notify the other party in writing 30 days in advance and such termination will take effect upon agreement by both parties. Save for the terms in relation to, among others, confidentiality contained in the MOU, the MOU is not legally binding. At the same time, the Group and the Prospective Partner are in the process of discussing possible ways of cooperation, which may include the formation of a business venture between the Group and the Prospective Partner; or the Group's investment in the projects of the Prospective Partner. As at the date of this announcement, none of the terms or form of the cooperation has been finalised. The Prospective Partner is an investment holding company incorporated in the Cayman Islands with limited liabilities and together with its operating subsidiaries, which are incorporated in Korea and Taiwan, are principally engaged in entertainment relate business. The Prospective Partner has production teams and artist academy and manages many of the artists, singers and groups. It also operates as a one-stop production house for various media production including movies, musicals, television programmes and music. The management of the Prospective Partner has more than 15 years of experience in the industry. To the best knowledge, information, and belief of the Directors, having made all reasonable enquiries, as at the date of this announcement, the Prospective Partner and its ultimate beneficial owners are independent third parties of and not connected with the Company and its connected persons. The Group is principally engaged in the provision of event management services and design and production services. Through the synergy brought by the Group's experience and expertise in event management and design and production, as well as the experience and expertise of the Prospective Partner in entertainment related business, the Board believes that the cooperation with the Prospective Partner can expand and enhance the competitive advantage of the Group's business and broaden the Group's revenue source, thereby enhancing the Group's profitability. Therefore, the entering into of the MOU is in the interests of the Company and its shareholders as a whole.