Shuke Group (02350) has announced that on August 20, 2024, the company entered into a non-binding memorandum of understanding (MOU) with Guangzhou Shiruikang Health Technology Co., Ltd. (Shiruikang). The contents of the MOU include the proposal to establish a joint venture company (proposed joint venture); based on the proposed joint venture, to provide modern services that integrate Tibetan medicine, Tibetan conditioning, and health care services for customers in Hong Kong, China and the Greater Bay Area of Guangdong, Hong Kong, and Macau. By using the highest quality digital transformation model, the company aims to better respond to market challenges and seize opportunities for the development of Tibetan medicine, traditional Chinese medicine, medical care, and holistic health projects in Hong Kong, Southeast Asia, and the Greater Bay Area, with medical technology and support provided by Shiruikang. The company will leverage its expertise in digital transformation and technological innovation to achieve more efficient operation and innovative products and services, while providing comprehensive support to Shiruikang to help it better understand consumer demands and market trends.
The Memorandum of Understanding aims to record the initial understanding among the parties to the Memorandum of Understanding as a platform for further negotiations. The parties involved have not yet entered into a legally binding agreement regarding the proposed joint venture.
The board of directors believes that the proposed joint venture can fully develop the aforementioned health industry innovation system and establish a foothold in the Guangdong, Hong Kong, and Macau Greater Bay Area. By supporting digital transformation, it will enable Shiruikang to better understand consumer demands and market trends, thereby enhancing the competitiveness of both companies.