1. INTRODUCTION

The Board of Directors of MQ Technology Berhad ("MQ" or the "Company") is pleased to announce that the Company had on 9 May 2023 subscribed 5,000 ordinary shares of RM1.00 each representing 100% equity interest in the issued and paid up capital of YIXI WELLNESS SDN. BHD. (Formerly known as CMHEE TRADING VENTURE SDN. BHD.) (Registration No. 202201047899 (1493596-W)) (“YIXI”) for a cash consideration of RM5,000.00. Upon the Subscription, YIXI becomes a wholly-owned subsidiary of MQ.

2. BACKGROUND INFORMATION OF YIXI

YIXI is a company incorporated in Malaysia on 29 December 2022 and has a paid-up capital of RM5,000.00 divided into 5,000 ordinary shares of RM1.00 each.

The principal activity of YIXI is to carry on businesses related to wholesale of variety of goods without any particular specialization, physiotherapy and occupational therapy service and other human health services.

The sole Director and sole Shareholder of YIXI is Mr. Chean Meng Hee.

3. FINANCIAL EFFECT

The Subscription does not have any material impact on the earnings, gearing and net assets per share of the MQ for the current financial year.

The Subscription also does not have any effect on the issued and paid-up share capital and substantial shareholders' shareholdings of MQ.

No liability is assumed by MQ in the above Subscription.

4. DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTEREST

None of the Directors and/or Substantial Shareholders of the Company and/or persons connected with such Directors or Substantial Shareholders have any interest, direct or indirect in the Subscription.

5. APPROVAL REQUIRED

The Subscription is not subject to the approval of shareholders and/or any regulatory authorities.

6. STATEMENT BY THE BOARD OF DIRECTORS

The Board of Directors of MQ is of the opinion that the Subscription is in the best interest of the future operations of MQ.

This announcement is dated 9 May 2023.