Tian Cheng Holdings Limited announced that the Group has recently established an indirect wholly-owned subsidiary of the Company in the PRC, with a primary focus in the research and development, manufacture and sale of class II medical devices controlled and administered under the Regulation on the Supervision and Administration of Medical Devices (Yi Liao Qi Jie Jian Du Guan Li Tiao Li), as well the operation of medical care and wellness centres in the PRC (collectively, the "New Business Activity"). The New Business Activity will be led by Ms. Zheng Yanling and Mr. Zhao Dongquan, both executive Directors, who have accumulated experience in business management in the PRC and the development, operation and sale of medical devices respectively. The Board is of the view that the launch of the New Business Activity presents an opportunity for the Group to diversity its existing business portfolio and takes advantage of the expertise and experience of the management of the Group.

Further, driven by the increasing and aging population, the prevalence of chronic diseases, and the increased awareness and affordability of patients in the PRC, there is an increasing demand for high technology medical devices for diseases prevention and treatment in the PRC, creating potential for the development of the New Business Activity. The Company also considers that the New Business Activity is in line with the PRC's ongoing healthcare policy "Healthy China 2030" ("J Jian Kang Zhong Guo 2030") promoting, among others, improving general healthcare in the PRC and domestic developed medical technology and devices. Hence, having considered the above, the Company is of the view that the launched of the New Business Activity will be in the interests of the Company and the Shareholders as a whole.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.