KAFELAKU COFFEE Holdings (01869) has announced the signing of a non-binding memorandum of understanding with Jiayou Coffee Limited. Under this memorandum, the two companies will leverage their respective strengths to explore comprehensive cooperation intentions. The specific methods of collaboration and other relevant terms are subject to further negotiation and the execution of a formal cooperation agreement.

1. Both parties have agreed to initiate cooperation aimed at promoting the deep integration and synergistic development of their advantageous resources, thereby facilitating strategic optimization and upgrades. 2. The companies will actively explore business development opportunities within the coffee sector, focusing on deepening the coffee supply chain system, expanding coffee chain outlets in outdoor settings, and developing coffee products. 3. They have agreed to establish coffee international trade operations to cultivate new growth points for product businesses. 4. The possibility of equity investment cooperation in the future is not ruled out, which may involve introducing each other as strategic shareholders to deepen future strategic collaborative ventures. 5. Discussions regarding the business cooperation are ongoing, and any collaboration remains pending the signing of a formal agreement.

The Board of Directors believes that this memorandum will benefit the company's existing coffee operations and foster deeper integration and synergistic development of their respective resources, ultimately creating new growth opportunities for the company.