FEG Holdings Announces Strategic Move into Health and Wellness Infrastructure Sector via MOU with Rongyichaoye

Hong Kong – March 18, 2026 – FEG Holdings Corporation Limited (Stock Code: 1413) has made a significant announcement that could mark a key turning point in its business strategy and future prospects. The company has voluntarily disclosed the signing of a non-legally binding Memorandum of Understanding (“MOU”) through its wholly-owned subsidiary, FEG Engineering (Shenzhen) Co. Ltd, with Rongyichaoye (Shenzhen) Construction Engineering Co., Ltd. This partnership is aimed at long-term strategic cooperation in the investment and construction of health and wellness infrastructure projects in the People’s Republic of China (PRC).

Key Highlights of the Announcement

• Strategic Diversification: FEG Holdings is formally entering the booming health and wellness infrastructure sector in China, marking a strong step towards business diversification and transformation. This aligns with its stated strategy to pursue new high-potential business areas.
• Significant Project Pipeline: Rongyichaoye has already secured a robust pipeline of health and wellness projects in the Guangdong-Hong Kong-Macao Greater Bay Area. The total potential engineering contract value is estimated to reach billions of RMB over the next three to five years, offering substantial revenue and growth prospects for FEG.
• Project Scope: The projects span a variety of asset types, including hot spring wellness complexes, community healthcare networks (notably replicable care home facilities), health stations, and traditional Chinese medicine industrial parks. These projects target scalable development and respond to the growing market demand driven by China’s ageing population.
• Experienced Partner: Rongyichaoye is led by Mr. Xiong Yi, an industry veteran with decades of experience in large-scale industrial project management and capital operations. Mr. Xiong previously held senior positions at a major new energy vehicle enterprise group, overseeing large-scale industrial park projects across multiple provinces.

Principal Terms of the MOU

• Effective Date: March 18, 2026
• Duration: Two years from signing date
• Legal Status: The MOU is non-legally binding, except for clauses on confidentiality, legal effect, and dispute resolution. Specific project terms will be detailed in separate legally binding agreements.
• Scope of Cooperation:
  • Engineering and Construction: Rongyichaoye will prioritize FEG Engineering (Shenzhen) as the engineering services provider for health and wellness projects. The first batch includes the Bokang Care Home and Zhongkang Qijing Health Station, expected to commence construction in Q3 2026.
  • Capital Cooperation: Both parties will explore the creation of a health and wellness industry construction fund to attract outside capital. They will also study the feasibility of injecting quality project assets from Rongyichaoye into FEG’s subsidiary, subject to compliance with HKEX listing rules.
  • Standards Co-Development: The parties will jointly research and develop standards for elderly-friendly design and wellness community construction, supporting industry advancement and quality development.

Potential Impact for Shareholders and Share Price Sensitivity

• Growth Potential: The partnership positions FEG Holdings to benefit from China’s rapidly expanding health and wellness infrastructure sector, which is supported by macro trends such as demographic ageing and increasing healthcare consumption. This could translate into substantial long-term value creation for shareholders.
• Early-Stage Commitment: Investors should note that the MOU, while strategic, is non-binding regarding specific projects. There is no guarantee that the cooperation or underlying projects will be implemented or completed as anticipated. This is a noteworthy risk factor that could affect share price expectations.
• Business Transformation: If the cooperation materializes, FEG Holdings’ business profile could shift significantly toward higher-growth sectors, potentially enhancing its market valuation.
• Regulatory and Transaction Status: The MOU does not constitute a notifiable or connected transaction under the HKEX Listing Rules. The company will provide further updates in line with regulatory requirements as concrete projects or agreements materialize.

Executive Commentary

The FEG Board emphasized that the health and wellness infrastructure sector offers meaningful growth opportunities, and that leveraging Rongyichaoye’s resources and Mr. Xiong Yi’s expertise, together with the Group’s capital markets platform, could drive high-quality transformation and long-term value for shareholders.

Important Shareholder Advisory

Shareholders and potential investors are strongly cautioned that the MOU is only a preliminary framework and does not create binding obligations for execution of specific projects. There is no assurance that the intended cooperation will be implemented or completed. Investors are advised to exercise caution when dealing in FEG Holdings’ securities.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The forward-looking statements are based on current information disclosed by FEG Holdings and may change as more details become available. Investors should consider all risks and uncertainties and consult their own advisors before making investment decisions.

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