Zhuoyue Holdings (00653) subsidiary and Ziyuanyuan reached a strategic cooperation plan to cooperate closely in the field of new cross-border retail services

Zhitong Finance App News, Zhuo Yue Holdings (00653) announced that Zhuoyue Supply Chain Management Co., Ltd. and Ziyuanyuan Holding Group Co., Ltd. (08223), a subsidiary of the company, signed a non-legally binding memorandum of understanding on the strategic cooperation plan that the group may reach with Ziyuanyuan on December 11, 2025, representing the preliminary agreement between the parties to the agreement, and the possibility of cooperation is subject to a formal cooperation agreement between the parties.

The Group and Ziyuanyuan will cooperate closely in the field of new cross-border retail services, including the following: (a) Cooperation with complementary advantages: Using the Group's leading advantages in the beauty retail industry, Ziyuanyuan's operating experience and sales resources throughout China, all parties will explore cooperation in the fields of market development, product cooperation, equipment support and talent exchange, and actively explore mutually beneficial business cooperation models; (b) Exploring regional cooperation in the Greater Bay Area: Ziyuanyuan and Zhuoyue Supply Chain Management Co., Ltd. intend to establish a joint venture, leveraging their respective advantages to establish joint online and offline “spans” within the Greater Bay Area “New Overseas Retail” to launch a new cross-border retail business model; (c) Business licensing cooperation: The Group intends to license Ziyuan's sales rights for some products and equipment in the Greater Bay Area region. Ziyuan will take advantage of the multi-year grid layout in mainland China, promote the market layout of products and equipment, and achieve a win-win situation for both parties.

Furthermore, the establishment of a possible cooperation plan aims to achieve balanced development between short-term results and medium- to long-term strategic goals by making full use of the comprehensive resource advantages of the Group and Ziyuanyuan and innovating new cooperation models. This is an important milestone in the diversified development of the two parties' businesses. The two sides plan to jointly create a new cross-border retail business model. The Group has been actively expanding its business areas and geographical scope to achieve business diversification and global development. The two sides hope to carry out industrial and technological innovation through all-round cooperation, carry out business optimization, strengthen coordination mechanisms, and bring major opportunities. The Board believes that the possible cooperation plan will further promote the Group's continued development and steady growth in the future, provide profitability, and bring more impressive returns to shareholders.