The board of directors of Perfect Group International Holdings Limited announced that a wholly owned subsidiary of the company, Perfect Jewellery China, has recently completed the formation of a company, Perfect Yuan Dian, with Yuan Dian and Yu Ya. To the best of the Directors' knowledge, information and belief having made all reasonable enquiry, Yuan Dian and Yu Ya and their ultimate beneficial owners are third parties independent of the Company and not connected persons with the Company and its connected persons. Yuan Dian and Yu Ya have long presence in the People's Republic of China jewellery market. The principal activities of Perfect Yuan Dian include the wholesale supply chain of the jewellery and related products in the internet marketing in the PRC. Perfect Yuan Dian is a company incorporated in the PRC and is owned as to 60% by Perfect Jewellery China, 30% by Yuan Dian and 10% by Yu Ya. The total capital commitment of Perfect Yuan Dian is RMB5 million. All parties are required to contribute their respective capital on or before 31 December 2021. The capital commitment of RMB3 million by Perfect Jewellery China will be funded by its internal resources.