AXXZIA Inc. announced that, during a meeting held on June 20, 2024, its Board of Directors reached the decision to establish a subsidiary in the United States of America (the "U.S."). Purpose of establishing the subsidiary The U.S. is one of the largest markets in the world, and the Chinese consumer population, who are its main customers, are said to number in the hundreds of millions. the company believe that the establishment of this subsidiary will enable company to accurately grasp consumer needs in the U.S. Another aim is to enhance flexibility and responsiveness to changes in the U.S. market by directly monitoring trends in the market and enabling rapid decision-making and execution.

The establishment of this subsidiary marks an important step in increasing awareness of the AXXZIA Group's brand in the North American region. The Company will be in direct contact with local consumers and business partners to further boost the AXXZIA Group's brand awareness and reputation. There are also many Chinese communities in the U.S. Targeting these communities, the company hope to leverage the track record company have already established in the Chinese market to gain a foothold to expand sales in the U.S. The establishment of this subsidiary will initially allow company to create a framework to reinforce its cosmetics business in the U.S. and eventually support its global business expansion, driving the growth of the entire AXXZIA Group.

Name is AXXZIA Cosmetic USA Ltd. Location: 160 E. Tasman Drive, Suites 125 & 126, San Jose, CA (tentative). Name of representative: Duan Zhuo. Business: Online store operation support, U.S. market development, brand awareness improvement.

Capital: USD 1 million. (tentative). Ownership ratio AXXZIA Inc. 100%.

Date of establishment July 31, 2024 (tentative). Fiscal year-end End of July. The impact of this matter on the Company's consolidated financial results is expected to be negligible.