Petpal Pet Nutrition Technology Co., Ltd. (hereinafter referred to as the Company) announced that in order to accurately and efficiently grasp the development opportunities of China's pet industry, give full play to their respective resource advantages and synergies, and after friendly negotiations, Hainan Xiucheng Junyi Private Equity Fund Management Co., Ltd. (Party A, hereinafter referred to as Xiucheng Junyi) and the Company have agreed to cooperate in the specialized investment field of the pet industry, and signed a "Strategic Cooperation Framework Agreement" on June 11, 2024.

As the manager, Party A intends to initiate the establishment of Pingyang Pet Industry Fund, with a target fundraising scale of RMB 300 million. Party B intends to subscribe RMB 120 million as a limited partner to Party A's initiated Pingyang Pet Industry Fund, accounting for 40% of the total amount of the fund's subscribed capital.

Party A intends to joint contribute RMB 180 million (RMB 1.8 billion) with other general partners and limited partners including other industry parties or investors as a limited partner by subscribing to Party A's initiated Pingyang Pet Industry Fund, accounting for 60% of the total subscribed capital of the fund. Among them, Pingyang County Government Industry Development Guidance Fund plans to contribute RMB 90 million (RMB 900 million), accounting for 30% of the total subscribed capital of the fund, and the specific contribution parties shall be subject to the partnership agreement signed by all partners.

The Pingyang Pet Industry Fund is mainly committed to investing in high-quality pet industry enterprises in the growth and maturity stages, including but not limited to sub-sectors such as pet food, pet medical and pharmaceuticals, pet supplies, and pet services. While focusing on pet industry investments, the fund will also focus on the global expansion and introduction of pet brands.