In January 2022, Shenzhen YOUME Industry Co., Ltd. (YOUME Industry) signed the Memorandum of Strategic Cooperation Agreement with and Yunnan Yunshuo Technology Co., Ltd. (Yunshuo Technology) under Jinjia Group (002191. SZ) to stipulate the strategic cooperation direction of both parties. The following are the specific contents:

Party A: Shenzhen YOUME Industry Co., Ltd. Party B: Yunnan Yunshuo Technology Co., Ltd. The cooperation content is shown as follows:

Focusing on the research and development of key technologies and products of new-type tobacco, we will carry out in-depth cooperation in the direction of new-type tobacco and electronic cigarette oil. Optimize and upgrade existing products or have research and development for the new products, including but not limited to patent formation, technical research, formula adjustment, provision of specially customized plant extract essence, etc. Party B shall provide the overall solution of product essence according to Party A’s needs.

According to the key problems encountered in the development of Party A, Party B shall organize the scientific research and technology team to carry out targeted development and the co-tackling: solving the key technologies, product upgrading and application of core fragrance technology; the cooperation in jointly formulating standard R & D, joint product development, project cooperation application, atomization health research, intellectual property protection, etc.

Party A supports Party B in R & D and the supply of electronic cigarette oil required by Party A and its affiliated companies. Party A supports Party B’s rapid development and provides relevant strategic investment empowerment such as industrial resources, advance payment for tobacco and oil, compliance development of relevant international standards, and follow-up investment of high-quality projects.

YOUME Group (YOUME Industry is a wholly-owned subsidy of YOUME Group) was established in 2014, having the atomizing smoke equipment of Suorin, idols, YOUME, Vapejoy, Airbar, Vapsi and so on. There are more than 200 core patent technologies in over 30 countries and regions in the world. Suorin a popular brand of small smoke in open style and Airbar a disposable electronic cigarette brand have been sold to more than 90 countries and regions such as the United States, Britain, Russia, South Korea, Japan and Indonesia.

YOUME Group is one of the shareholders of Jiajin Technology, and Jiajin Technology also keeps providing comprehensive services for R & D, design and manufacturing of new tobacco products such as e-cigarettes for YOUME Group. The strategic cooperation and equity transfer reached by YOUME Group and Yunshuo Technology is another close cooperation between YOUME Group and Jiajin after jointly proceeding with the R&D and production of electronic cigarettes. They will effectively make use of the relevant advantageous resources to achieve the co-development of business.