On August 20, 2024, Shukang Group (02350.HK) announced that the company has entered into a non-binding memorandum of understanding with Guangzhou Shuirui Kang Health Technology Co., Ltd., which includes (i) the proposal to establish a joint venture company; (ii) the proposal to provide modern services integrating Tibetan medicine, Tibetan conditioning, and health services for customers in Hong Kong and the Greater Bay Area, and to better respond to market challenges and seize opportunities through the highest quality digital transformation model. Develop projects related to Tibetan medicine, traditional Chinese medicine, medical and health care in Hong Kong, Southeast Asia, and the Greater Bay Area. Shuikang will provide medical technology and support, and the company will utilize its expertise in digital transformation and technological innovation to achieve more efficient operation and innovative products and services, and provide comprehensive support to Shuikang to help Shuikang better understand consumer needs and market trends.

The board of directors believes that the proposed joint venture can (i) fully develop the above-mentioned health industry innovation system and be based in the Guangdong-Hong Kong-Macao Greater Bay Area; (ii) through digital transformation, support Shuirui Kang's better understanding of consumer needs and market trends, thereby enhancing the competitiveness of the company and Shuirui Kang.