TIANYUAN HEALTH has made an announcement regarding a planned divestment. On June 9, 2026, Hengqin Hanyuemei, an indirect wholly-owned subsidiary of the company, entered into an equity transfer agreement with the buyer, Shenzhen Zehua International Trade Co., Ltd. Under this agreement, Hengqin Hanyuemei intends to sell its 60.8077% equity stake in the target company to the buyer for a total consideration of RMB 23 million.

Upon completion of the transaction, the target company, Shanghai RIFU Industrial Co., Ltd., will cease to be a subsidiary of the group. Consequently, its financial performance, assets, and liabilities will no longer be consolidated into the group's comprehensive financial statements.

The company is continuously evaluating its existing business strategies to explore viable paths for enhancing overall performance. The financial performance of the target group primarily stems from the medical-related operations of Shanghai Hospital. Although the hospital completed renovation and upgrading and resumed operations by the end of 2025, its subsequent performance has fallen significantly short of expectations.

Despite management's attempts to transition towards non-invasive aesthetic medicine services, the transformation has not yielded satisfactory results, and the hospital has continued to incur losses. Due to the tight cash flow at Shanghai Hospital, covering basic administrative and operational expenses has become difficult, placing considerable pressure on the group's overall financial condition.

Considering several factors, the company has concluded that terminating or selling the Shanghai Hospital business would be beneficial for improving the group's overall financial performance. These factors include: (1) the need for the group to continuously inject substantial funds if it continues to operate Shanghai Hospital; (2) intensified competition within the aesthetic medicine industry, insufficient overall market vitality, and significantly extended profitability cycles for newly opened institutions; and (3) continued operation would divert management resources and deviate from the group's strategic focus on the health management business.