Haidilao International Holding Ltd. announced that As the Yihai Master Purchase Agreement will expire on December 31, 2023, and the Company will continue the transactions under the Yihai Master Purchase Agreement subsequent to December 31, 2023, the Company and Yihai, each for itself and on behalf of its subsidiaries, entered into a new Yihai master purchase agreement (the "Renewed Yihai Master Purchase Agreement") on October 17, 2023 for a term of three years commencing from January 1, 2024 to December 31, 2026 (both days inclusive), subject to the independent shareholders' approval of both Yihai and the Company. The Yihai Master Purchase Agreement will be terminated once the Renewed Yihai Master Purchase Agreement takes effect. The Renewed Yihai Master Purchase Agreement has an initial term of three years commencing from January 1, 2024 to December 31, 2026 (both days inclusive), subject to the independent shareholders ' approval of both Yihai and the Company.

Subject to compliance with applicable laws and regulations (including but not limited to the Listing Rules) and requirements of securities regulatory authorities, the Renewed Yihai Master Purchase Agreement may be automatically renewed for a further term of three years from time to time, unless: (i) the parties agree in writing to terminate the Renewed Yihai Master Purchase Agreement during its term; or (ii) the Renewed Yihai Master Purchase Agreement is terminated as required by applicable laws, regulations, requirements of the securities regulatory authorities, or judgment or decision of any competent court. Upon renewal of the Renewed Yihai Master Purchase Agreement, the parties may amend the terms of the Renewed Yihai Master Purchase Agreement based on the then prevailing circumstances. During the term of the Renewed Yihai Master Purchase Agreement, the Group agreed to purchase Haidilao Customized Products and Yihai Retail Products from Yihai Group and purchase instant self-serving products from Fuhai Shanghai.

Purchase of Haidilao Customized Products During the term of the Renewed Yihai Master Purchase Agreement, subject to compliance with requirements on mass production and standardization, Yihai Group is supplier of Haidilao Customized Products for use in hot pot restaurants in mainland China, Hong Kong, Macao, and Taiwan regions. In the event that Yihai Group fails to satisfy demands and such problem is not resolved within a reasonable period of time (in any event no longer than 30 days) after negotiation between both parties, the company may engage third party suppliers. Purchase of Haidilao Customized Products will be made on the basis of individual orders specifying the type of product, purchase volume, sales price, delivery date and etc.

The price of Haidilao Customized Products shall be determined based on the pricing policy as set out below. Payment will be made based on the purchase volume per individual order on a monthly basis or at other periods as agreed by both parties. For any upgrades and developments in the Condiments Formulae made through the joint efforts of Yihai Group and the company will own the proprietary rights, while Yihai Group and its contract manufacturers will be entitled to use such upgraded formulae for production of Haidilao Customized Products.

In relation to the purchase of products which will be produced with such upgraded formulae, and in accordance with the Yihai Master Purchase Agreement, a supplemental agreement will be entered into by the parties to confirm that the upgraded formulae are a result of the joint efforts of Yihai Group. For any upgrades and developments in the Condiments Formulae made through Yihai Group's own efforts, Yihai Group will own the proprietary rights of such upgraded formulae unless otherwise agreed between the parties. If Yihai Group agrees to supply any product which will be produced with such upgraded formulae to us, in accordance with the Renewed Yihai Master Purchase Agreement, a supplemental agreement will be entered into by the parties to confirm that the upgraded formulae are a result of Yihai Group's efforts and to confirm the usage of such upgraded formulae.