CHINA WACAN (01920) plans to expand into the beauty industry beyond its existing business.

CHINA WACAN (01920) announced that the group's existing business mainly involves providing mud and water engineering as well as other related supporting engineering services, and providing architectural information technology services. The company has been striving to improve the group's business operations and financial condition, actively seeking to introduce new businesses, explore new sources of revenue for the group, promote diversified development for the group's future, in order to achieve the best interests of shareholders. The Board of Directors hereby informs shareholders and potential investors that the group intends to expand into a new beauty business beyond its existing business, to provide high-quality beauty services, nutritional and health products, and health services (new business). Given the increasing pursuit of beauty and health awareness among consumers in China and around the world, as well as changes in lifestyle, there are significant business opportunities emerging in the beauty industry. In addition, Chairman Zhou Zhenlin has rich experience in skincare, beauty products, and health management, the Board believes that expanding into new business will help achieve diversification of the group's business and revenue sources. The development of the new business will focus on comprehensive consumer services, meeting consumers' demands for beauty products and services, including: cosmetics, beauty skincare products, nutritional health foods, lifestyle beauty, medical beauty, and health management. The main operating model will be to establish joint ventures and physical stores in first and second-tier cities in China in collaboration with local partners, where the group will provide product sales, lifestyle beauty services, medical beauty consulting services, health management consulting services, and comprehensive shopping services to the joint ventures and physical stores. The group will also provide overall operational management and commercial guidance services, and collect management fees and consulting service fees based on the annual revenue of each joint venture and physical store.