According to the Zhitong Finance App, Tan Tsai International (02217) announced that on May 31, 2022, the company entered into a management service agreement with Donglido Hong Kong (the company's controlling shareholder) for the period from June 1, 2022 to May 31, 2023 (including the first and last two days).

The group will provide management services to the East Lido Hong Kong Group, including assisting in stabilizing business operations; assisting in the business procurement process; providing expertise and knowledge sharing to improve front-line store operations; assisting the business in marketing activities and providing marketing plans; providing general support services; and assisting in strengthening the implementation of the reporting system (collectively, management services).

The Board believes that the provision of management services will enable the group to make better use of its existing business resources to expand its revenue streams. Furthermore, the provision of management services will enhance the overall business operations of the East Lido Hong Kong Group, which may benefit the group, as the group can take advantage of the improvements in business operations of the East Lido Hong Kong Group and explore potential future strategic cooperation between the Group, Toridol Hong Kong Group and/or Toridoll Japan.

The board also believes that there is a clear and sufficient division between the Group's business and business, and that there is no current business, and that there will be no direct or indirect competition with the Group's business in the future. Therefore, the Group believes that the proposed transactions under the Management Services Agreement are beneficial to the growth and development of the Group's overall business.