JIA YAO HLDGS (01626) has announced that the group has been consistently focusing on the health and wellness and biopharmaceutical sectors in recent years. The group formally commenced operations related to cannabidiol (CBD) in April 2026. Currently, the group is primarily engaged in the procurement of CBD from China and export activities, with products mainly sold to skincare, daily chemical, and pharmaceutical companies in Europe and North America. A dedicated operations team has been established to manage this business, with core members possessing relevant industry experience. The group strictly adheres to applicable laws and regulations, conducting its business in full compliance. As of the date of this announcement, the group has obtained the necessary qualifications and permits for the related business. In accordance with relevant Chinese regulatory requirements, the group has secured the 'Filing Certificate for the Operation of Non-Drug Precursor Chemicals.' For its existing export business, the group has applied for and received the 'Dual-Use Items and Technologies Export License,' making it one of the few enterprises in China legally permitted to engage in CBD procurement and export. Furthermore, the group will continue to closely monitor legal and regulatory changes concerning CBD in relevant jurisdictions to ensure ongoing compliance. At this stage, the group primarily leverages its supply chain advantages to provide CBD to overseas markets at competitive prices. As of the announcement date, while the related business is still in its early development phase, substantive trade contracts have been signed, generating actual sales revenue and payments received. The group plans to deepen its presence in existing European and Southeast Asian markets while gradually exploring the feasibility of extending into downstream end-products, such as beauty and personal care, and pet health. The group will also continue to invest in research related to applications, including planned discussions with academic institutions for product development collaboration. Additionally, given that the medical application value of CBD has been confirmed by internationally authoritative medical journals, and many countries and regions globally have relaxed policies related to its medical use, the board of directors anticipates sustained growth in market demand. The group's related business is expected to contribute positively to the company's future cash flow and profit growth.
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