SOUTH CHINA FIN (00619) announced that on November 14, 2025, the company signed a memorandum of understanding with a China-registered firm. The partner primarily engages in: (i) enabling technology—developing AI-powered tools and algorithms to accelerate data analysis, prediction, and research; (ii) scientific foundation—leveraging AI to study molecular mechanisms for translational applications and clinical needs; and (iii) end products and clinical applications—translating molecular research insights into drug pipeline development and real-world clinical use.

The proposed joint venture, to be established in mainland China or Hong Kong, aims to: (a) develop an AI-driven drug R&D platform and provide related technical services; (b) create an AI-based efficacy prediction platform for global beauty industry clients; (c) develop disease and aging-related pipelines; and (d) launch direct-to-consumer anti-aging products.

While consolidating its core financial business, the group has actively pursued strategic expansion into high-tech sectors. Investing in AI-powered biotech represents a key step in diversifying its operations. The board believes the joint venture will enable entry into high-growth markets such as AI drug development, beauty tech, and anti-aging consumer products. This move not only mitigates risks from over-reliance on existing operations but also unlocks significant potential for new revenue and profit streams, fostering sustainable long-term value growth.