The board of directors of China Health Technology Group Holding Company Limited announce that on 24 January 2024, the Company entered into a non-legally binding strategic cooperation memorandum (the "Strategic Cooperation Memorandum") with Ningxia AL-AMINA Cloud Pasture Breeding Co. Ltd. ("Ningxia AL-AMINA"). Pursuant to the Strategic Cooperation Memorandum, both parties agreed to cooperate to jointly develop diversified Tan sheep-related trade business in the People's Republic of China ("PRC") (the "Cooperation Business").

Pursuant to the Strategic Cooperation Memorandum, in order to jointly develop the Cooperation Business, the Company will be responsible for supervising the market operation of Tan sheep farm, and Ningxia AL-AMINA will provide Tan sheep for the Company's sales and be responsible for the management and operation of the farm. Both parties will jointly provide marketing and sales personnel to be responsible for the promotion and sales of the Cooperation Business. Both parties will enter into a definitive agreement in respect of the Cooperation Business as and when appropriate.

The Board believes that the entering into of the Strategic Cooperation Memorandum between the Group and Ningxia AL-AMINA will benefit the Group in developing new business activities related to Tan sheep. The new business activities are an opportunity for the Group to diversify its business and revenue sources, which will ultimately enhance the Group's financial performance and profitability. The Board considers that the development of new business activities will not only expand the Group's main business, but also bring synergies to the Group's operations.

The Board considers that it would be in the interests of the Company and its shareholders as a whole to undertake new business activities.