Reference is made to the Listing Document in relation to, inter alia, the Yihai Master Purchase Agreement. On December 12, 2022, Yihai International Holding Ltd. (Yihai) and Super Hi International Holding Ltd. (the Company), each for itself and on behalf of its subsidiaries, entered into the Yihai Master Purchase Agreement, pursuant to which the Group agreed to purchase Haidilao Customized Products, Yihai Retail Products and instant self-serving products from Yihai Group. As disclosed in the Listing Document, the term of the Yihai Master Purchase Agreement commenced from the Listing Date and continue until December 31, 2023 (both days inclusive).

Subject to compliance with applicable laws and regulations (including but not limited to Chapter 14A of the Listing Rules at the time of renewal) and requirements of securities regulatory authorities, the Yihai Master Purchase Agreement may be renewed for a further term of three years from time to time, unless (i) the parties agree in writing to terminate the Yihai Master Purchase Agreement during its term; or (ii) the 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 Yihai Master Purchase Agreement, the parties may amend the terms of the Yihai Master Purchase Agreement based on the then prevailing circumstances subject to the compliance with the requirements under Chapter 14A of the Listing Rules. At the time of the Listing in December 2022, the Stock Exchange granted a waiver to the Company in respect of, inter alia, the non-exempt continuing connected transaction under the Yihai Master Purchase Agreement from strict compliance with the announcement, circular and independent shareholders' approval requirements under Chapter 14A of the Listing Rules (the "Waiver").

Pursuant to the Waiver, the transactions under the Yihai Master Purchase Agreement are subject to the respective annual caps for the two years ending December 31, 2023. Since the Listing Date, the Group has been conducting certain continuing connected transactions under the Yihai Master Purchase Agreement in ordinary and usual course of its business on normal commercial terms. The Company has closely monitored the transactions contemplated under the Yihai Master Purchase Agreement and the actual transaction amounts did not exceed the annual cap for the year ended December 31, 2022. As of the date of this announcement, the actual transaction amounts for the transactions under the Yihai Master Purchase Agreement did not exceed the annual cap for the year ending December 31, 2023.

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 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 Agreements 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 Chapter 14A of the Listing Rules at the time of renewal) and requirements of securities regulatory authorities, the Renewed Yihai Master Purchase Agreement may be 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 subject to the compliance with the requirements under Chapter 14A of the Listing Rules. During the term of the Renewed Yihai Master Purchase Agreement, Yihai Group is the supplier of Haidilao Customized Products for use in the hot pot restaurants outside Greater China.

The Company is generally restricted from engaging Independent Third Party suppliers to provide the Haidilao Customized Products unless (i) in the event that Yihai Group is unable to satisfy the quantity or quality of products demanded by the Group, and such problem is not resolved within a reasonable period of time after negotiation between both parties, the Group may engage Independent Third Party suppliers; or (ii) the parties agree as otherwise. For example, the Company may enter into good faith negotiation and agree with Yihai if the Company decides to engage local Independent Third Party suppliers taking into account various factors, including delivery cost and delivery time. 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 and payment will be made based on the purchase volume per order. The Group owns the proprietary rights to the formulas of Haidilao Customized Products (the "Condiments Formulae") and license the Condiments Formulae to Yihai Group and its contract manufacturers to use for production on a royalty-free basis. Yihai Group are subject to contractual obligations where it shall fulfill, and shall use reasonable efforts to procure its contract manufacturers to (i) keep confidential the Condiments Formulae; and (ii) unless the Group has given written consent, refrain from selling products that use these formulae to any of its major competitors.

For any upgrades and developments in the Condiments Formulae made through the joint efforts of Yihai Group and the Group, the Group will own the proprietary rights and Yihai Group and its contract manufacturers will be entitled to use such upgraded formulae for production of Haidilao Customized Products.