FEG Holdings (01413) and its subsidiary have signed a memorandum of understanding with Rongyi Chaoyue for investment and development of health and wellness infrastructure.

FEG HOLDINGS (01413) announced that on March 18, 2026, the company's wholly-owned subsidiary, Zhu Di Engineering (Shenzhen) Co., Ltd. (the subsidiary), signed a non-legally binding Memorandum of Understanding on strategic cooperation with Rongyi Chao Yue (Shenzhen) Construction Engineering Co., Ltd. (Rongyi Chao Yue). The contracting parties agreed to establish a long-term strategic cooperation relationship, focusing on investing and constructing health care infrastructure in the People's Republic of China. This cooperation marks the Group's official entry into the health care infrastructure sector and aims to further promote the diversification of the Group's businesses and strategic transformation. According to the Memorandum of Understanding, the contracting parties intend to explore cooperation in the following areas: 1. Engineering and construction cooperation: Rongyi Chao Yue will prioritize hiring the subsidiary as the engineering service provider for its health care infrastructure projects. The initial projects will include (but are not limited to) Bokang Nursing Home and Zhongkangqi Health Station, with construction expected to commence in the third quarter of 2026. 2. Capital cooperation: The contracting parties will discuss establishing a health care industry development fund to attract external capital and study the feasibility of injecting Rongyi Chao Yue's quality project assets into the subsidiary in compliance with the Listing Rules of The Stock Exchange of Hong Kong Limited. 3. Joint development of standards: The contracting parties will jointly research and establish standards for age-friendly design and the construction of health care communities to promote orderly industry development. The Board believes that the strategic cooperation with Rongyi Chao Yue aligns with the Group's proactive pursuit of business diversification and transformation. The Board considers that the health care infrastructure industry in China has significant growth potential due to changing demographics and healthcare needs. With Rongyi Chao Yue's project resources and Mr. Xiong Yixian's rich industry experience, combined with the Group's advantages as a listed platform in the capital market, it is expected that this cooperation will provide important impetus for the Group's high-quality transformation and the long-term value enhancement for shareholders.