The board of directors Hyfusin Group Holdings Limited announced that of the Company wishes to inform the shareholders of the Company and potential investors that it has been advised by a customer of the Group in the United States about two alerts initiated by the United States Consumer Product Safety Commission (the "Recall Alerts"), requiring the Customer to recall about 7.1 million units of glass jar candles supplied by the Group for exclusive sale by the Customer in the United States. According to the Recall Alerts, the Affected Products may pose safety concerns to users as they are prone to crack or break during use, posing laceration and burn hazards. Consumers are advised to return the Affected Products to the Customer for a full refund.

The Company has now received a claim of about USD 6.8 million from the Customer to compensate for its commercial losses due to the recall of the Affected Products. The Company will assess the impact of the recall on the financial performance and operation of the Group. The Company will continue to monitor the situation closely and will issue further announcement(s) when appropriate.