FEG HOLDING-NEW (01413) announced that on March 18, 2026, its wholly-owned subsidiary, FEG Engineering (Shenzhen) Co., Ltd., entered into a non-binding memorandum of understanding concerning strategic cooperation with Rongyi Chaoyue (Shenzhen) Construction Engineering Co., Ltd. The parties agreed to establish a long-term strategic partnership focused on investing in and constructing health and wellness infrastructure within the People's Republic of China. This collaboration signifies the group's official entry into the health and wellness infrastructure sector and is intended to further advance the group's business diversification and strategic transformation.

According to the memorandum, the parties intend to explore cooperation in the following areas: Engineering and Construction Collaboration: Rongyi Chaoyue will give priority to engaging the subsidiary as its engineering services provider for health and wellness infrastructure projects. The initial batch of projects will include, but not be limited to, the Bai Kang Nursing Home and the Zhong Kang Qi Jing Health Station, with construction expected to commence sequentially starting from the third quarter of 2026. Capital Cooperation: The parties will explore establishing a health and wellness industry construction fund to attract external capital. Furthermore, subject to compliance with the Hong Kong Stock Exchange's Listing Rules, they will study the feasibility of injecting Rongyi Chaoyue's high-quality project assets into the subsidiary. Joint Standard Setting: The parties will jointly research and develop standards for age-friendly design and the construction of health and wellness communities, aiming to promote the orderly development of the industry.

The board of directors believes the strategic cooperation with Rongyi Chaoyue aligns with the group's proactive strategy of pursuing business diversification and transformation. The board is of the view that China's health and wellness infrastructure industry possesses considerable growth potential, driven by the nation's aging population and evolving healthcare demands. Leveraging Rongyi Chaoyue's project resources and the extensive industry experience of Mr. Xiong Yi, combined with the group's strengths as a listed platform in the capital markets, the cooperation is expected to provide significant impetus for the group's high-quality transformation and the enhancement of long-term shareholder value.