Qianhai Health Company Limited, has signed a letter of intent of strategic cooperation with Shenzhen LiZhiXi Health Management Limited. The Group is principally engaged in sale of healthcare products and electronic component products. LiZhiXi is engaged in the manufacturing, research and development and sales of healthcare products and has rich resources related to healthcare area.

The Group believes that the proposed strategic cooperation under the Letter of Intent is in line with the Group's long-term development objectives and business development strategy. The Group can integrate its sales network of healthcare products into distribution channels and other platforms in order to expand its business of healthcare products in China. The strategic cooperation with LiZhiXi will potentially bring profit growth for both parties, which is in the interests of the Company and its shareholders as a whole.

The specific terms and conditions of the formal agreement are subject to the approval of the Board after the completion of the due diligence. If a definitive business agreement is entered into, the Company will make further announcement in accordance with the Listing Rules as and when appropriate. To the Directors' knowledge, information and belief, and having made all reasonable enquiries, LiZhiXi and its ultimate beneficial owners are independent third parties and not connected with the Company or any of its connected persons.