NEUTECH GROUP (09616) announced that on April 15, 2026, Dalian Neutech Health Technology Co., Ltd., an indirect wholly-owned subsidiary of the company, entered into a Shanghai Sponsorship Agreement with an independent third party, Shanghai Dongruan Data Technology Co., Ltd., a wholly-owned subsidiary of Neusoft Corporation. The agreement concerns the establishment of Shanghai Neutech Health Technology Co., Ltd. According to the terms of the agreement, the registered capital of the Shanghai venture will be RMB 130 million. Neutech Health and Dongruan Data will contribute RMB 104 million and RMB 26 million, respectively, representing 80% and 20% of the registered capital. Consequently, upon establishment, the Shanghai venture will be 80% owned by Neutech Health and 20% owned by Dongruan Data. Subject to approvals from relevant regulatory bodies and registration authorities, the business scope of the Shanghai venture will include the development and sales of medical and elderly care software and technology products, IT consulting services, internet data services, computer system services, non-medical wellness and healthcare services, health consulting services, as well as advisory and planning services. The establishment of the joint venture is a strategic move by the Group to explore opportunities in the elderly care technology industry. Considering the anticipated decline in higher education enrollment due to falling birth rates and the growing market potential of China's aging society, the Group initiated a strategic transformation in 2024 to explore development in the elderly care technology sector. Leveraging its core strengths in IT higher education, the Group has proposed a concept of "Education-Driven Aging Prevention, Technology-Enabled Elderly Care." While the previous joint venture focused on promoting elderly care technology business in its operating city, the establishment of the Shanghai venture aims to accelerate the expansion of this business into other cities across China. The elderly care technology business will connect substantial demand for elderly services with service providers, building an integrated elderly care service system to conveniently offer necessary products and services to the elderly, thereby creating new revenue streams for the company. The establishment of the joint venture pools the resources and experience of Neusoft Corporation, playing a constructive role in expanding technological innovation, strengthening the service foundation, and improving capital utilization efficiency, thus enhancing the competitiveness of the Group's elderly care technology business. The Directors believe that the establishment of the joint venture and the terms of the joint venture agreement are fair and reasonable, and in the overall interests of the company and its shareholders.