*ST Kerry (002072): Signed A Strategic Cooperation Framework Agreement With The Jingmen Municipal Government

In June 22nd, ST 002072.SZ announced that the company (Party B) signed the strategic cooperation framework agreement with the Jingmen Municipal People's Government (Jingmen municipal government) and Party A in recent days. The two sides have established a long-term and stable strategic investment cooperation relationship based on the principle of "complementary advantages, mutual benefit, sincere cooperation and common development" to jointly promote Jingmen city. Upgrading of health industry and promotion of strategic transformation. The agreement is as follows:

1. as a strategic partner, both sides have formally established long-term and stable strategic investment cooperation to jointly promote the upgrading of Jingmen's big health industry and promote the strategic transformation of the company.

2. Party A supports Party B to carry out deep cooperation with Jingmen's local high quality green health food enterprises and other related enterprises. In compliance with relevant state laws and regulations and the specific policy framework of Hubei and Jingmen for the support of listed companies, Party A gives Party B financial and tax, land, industrial funds and other policy support. Party A and B are working together in Jingmen to build a large health industrial ecological project, and jointly build a digital and specialized food industrial park with the characteristics of health care and leisure food in Jingmen.

3. in order to ensure the smooth progress of the cooperation project, Party A welcomes and fully supports Party B's relocation of the company's registered address to "Jingmen City, Hubei province", and arranges the joint working group of the Jingmen Municipal Finance Bureau, the municipal Party committee, the municipal government and Party B to cooperate with Party B to complete the specific matters of landing, project acquisition, capital raising and industrial investment.

4. according to the Hubei provincial government's opinions on further promoting the listing of enterprises and the Jingmen municipal government's policy on further promoting the listing of listed companies, Party A supports Party B's future listing in Jingmen and fulfilling its relevant incentive policies.

5. Party A, in order to support the development of Party B's follow up industry, and in accordance with relevant laws and regulations, actively coordinate the full support from the banking financial institutions to Party B's financing in accordance with relevant laws and regulations. On the basis of fully respecting the wishes of Party B, we should coordinate the investment of local state-owned capital platform into Party B and become a strategic partner of deep integration.

6. this agreement is a framework document. It is a principled agreement on the rights and obligations of both parties. When the parties need to cooperate in specific terms, they should sign separate contracts corresponding to cooperation, and ensure that they are legally compliant. If the items specified in this Agreement do not conform to the specific contract, the specific contract shall prevail.

7. the specific implementation plan stipulated in this agreement is still in the negotiation stage between Party A and Party B. After the agreed items of this agreement reach the standards of consideration and disclosure, Party B shall perform corresponding examination and approval procedures and disclosure procedures.

The company signed the strategic framework agreement with the Jingmen municipal government, which will speed up the strategic transformation of the company and enhance the company's ability to continue operation. The two sides will give full play to their unique advantages in talent resources, technology R & D, and industry market in the future, and accelerate the wider and in-depth cooperation in the field of large health food industry to jointly boost the economic development of Jingmen. It is not expected that the signing of this agreement will have a significant impact on the company's financial performance and operating performance in 2020.