The board of directors of Wenye Group Holdings Limited (group) announced that, on 9 August 2023, the Group entered into a memorandum of understanding with Xinjiang Guozheng Investment Co. Limited in relation to strategic co-operation over a 350 stores bazar located in Ü rümqi, Xinjiang, the PRC. The Group will provide decoration and design services and Xinjiang Guozheng will leverage its experience in the field to develop the bazar.

The Group is principally engaged in provision of interior and exterior building decoration and design services in the PRC and will be able to leverage its expertise for development of the bazar. The project is expected to enable the Group to strengthen its revenue and expand the portfolio of construction projects that the Group undertakes. Having considered the above, the Board is of the view that entering into the Memorandum of Understanding is in the interest of the Group and the shareholders as a whole.