WANJIA GROUP (00401) announced that its indirect non-wholly owned subsidiary, Wuhua Yangke Nephrology Hemodialysis Co., Ltd. (Wuhua Yangke), recently received a notice of agreement handling issued by the Wuhua County Medical Insurance Administration Center (Wuhua Medical Insurance Center) on October 23, 2025. According to the notice, due to deviations from standard medical prescription practices at the Wuhua Yangke Hemodialysis Treatment Center (Wuhua Hemodialysis Center), the company violated the Prescription Management Measures, the Drug Administration Law of the People's Republic of China, and the Meizhou Designated Medical Institution Medical Insurance Service Agreement (Service Agreement). Consequently, the Wuhua Medical Insurance Center has taken the following actions against Wuhua Yangke: 1. The legal representative and management of Wuhua Yangke must attend an interview with the Wuhua Medical Insurance Center and rectify the non-compliant issues. 2. The Service Agreement between Wuhua Yangke and the Wuhua Medical Insurance Center will be suspended for 61 days starting November 1, 2025 (Suspension Period).

Apart from the above, Wuhua Yangke and/or the Wuhua Hemodialysis Center have not faced any other penalties. The company takes these non-compliant matters seriously and will immediately implement corrective measures to comply with the notice and prevent recurrence. These measures include, but are not limited to, conducting a comprehensive internal control review of the Wuhua Hemodialysis Center’s operations (particularly prescription processes) and deploying additional personnel to monitor practices and ensure strict adherence to applicable Chinese laws and regulations.

The company has also reviewed operations at other hemodialysis centers under the group and confirmed no similar non-compliance issues elsewhere. During the Suspension Period, the Wuhua Hemodialysis Center will remain open but will only provide services outside the scope of the Service Agreement. Since hemodialysis services fall under the agreement, the center will not offer such services during this period. Existing hemodialysis patients will be redirected to nearby hemodialysis centers or hospitals.

The company believes that, as of the announcement date, the limited operations of the Wuhua Hemodialysis Center during the Suspension Period will not materially adversely affect the group’s financial condition, business, or daily operations.