SHIFANG HLDG(01831) clarification: The rumors of intending to invest in "Fuzhou Xiangshang Maternity Center" and assuming the unpaid wages of employees of this project are not true.

SHIFANG HLDG (01831) Announcement: Recent market rumors about our intention to invest in "Fuzhou Xiangshang Maternity Center" (Xiangshang Maternity Center) and take on related employee salary arrears are not true. "Xu Wensheng" has not been legally authorized by our board of directors and has never confirmed to our board of directors that he has sufficient funds to participate in any of our business activities when he registered a company under the name "Shifang Xiangshang". Therefore, any commitments made by him are not related to our company. Our company has been experiencing financial losses for years. In order to reduce these losses and improve our financial performance, we have been reducing investments in loss-making businesses or outsourcing some high-cost, low-profit margin operations, all in order to protect the basic rights of our shareholders. In such circumstances, we will not overlook the basic rights of our shareholders by investing in a severely loss-making project like "Xiangshang Maternity Center" or taking on the salary arrears of its employees to increase our liabilities. Furthermore, our board of directors would like to clarify that if "Xu Wensheng" or any other third party or individual not authorized by our board of directors uses our company's name to obtain catering or any other commercial services without payment, benefit from any third party or individual, or make any investment commitments, these actions are not related to our company. We will not be responsible for any financial expenses incurred by them. Our company also has no senior management or authorized representatives other than those publicly disclosed.