SMI Holdings Group Limited (SEHK:198) entered into the memorandum of understanding to acquire a stake in Ally Fortune Investments Limited from Master Glory Group Limited (SEHK:275) on May 31, 2018. The consideration, the payment method and the payment schedule of the proposed acquisition shall be determined by Master Glory Group and SMI Holdings Group after their arm's length negotiations and mutual agreement and be set out in the formal agreement. The memorandum of understanding shall expire on July 31, 2018 or upon the execution of the formal agreement, whichever is earlier unless extended by agreement of parties in writing. As of July 31, 2018 The expiry date of memorandum of understanding extended from July 31, 2018 to September 28, 2018 or upon the execution of the formal agreement, whichever is earlier unless extended by agreement of the parties in writing. The due diligence review is to be completed by SMI Holdings Group within one month after the date of the memorandum of understanding (or such later date as Master Glory Group and SMI Holdings Group may otherwise agree in writing). The proposed acquisition will be subject to the fulfillment of certain conditions precedent. The formal agreement is subject to the results of the due diligence review to SMI Holdings Group's satisfaction and is expected to be entered into within two months from the date of the memorandum of understanding.

SMI Holdings Group Limited (SEHK:198) cancelled the acquisition of a stake in Ally Fortune Investments Limited from Master Glory Group Limited (SEHK:275) on September 28, 2018. The transaction was terminated because no formal agreement was signed between the parties. The Directors of SMI Holdings Group Limited are of the view that the lapse of the MOU will not have any material adverse impact on the business operation and financial position of SMI Holdings Group Limited.