China Foods Holdings Ltd. (the “Company” or “CFOO”) operates in the health and wellness industry, focusing on the development, distribution, and marketing of healthcare products and services. The Company’s core activities revolve around traditional Chinese medicine-inspired health supplements, functional foods, skincare, and personalized health consulting, primarily targeting the rapidly expanding Great Health Industry in China. Through its wholly owned subsidiary, Guangzhou Xiao Xiang Health Industry Company Limited, CFOO delivers products designed to enhance immunity, improve general wellbeing, and address diverse health needs across all age groups.

CFOO generates revenue through the sale of health-related products and services, including nutrition catering, special health foods, health supplements, skincare, and wine. The Company also offers customized healthcare consultation services, providing tailored solutions such as natural food supplement recommendations and wellness advice. Revenue is derived from both online and offline distribution channels, with a growing emphasis on e-commerce platforms and social media-driven engagement to expand market reach and customer retention.

The Company operates through the following segments:

• Nutrition Catering: This segment focuses on providing functional foods and meal solutions designed to support health and wellness, aligning with traditional Chinese medicine principles. Products in this category are marketed as complementary to daily diets, targeting consumers seeking preventive healthcare options.

• Special Health Food: This segment includes food products formulated for specific health benefits, such as immune support, digestive health, and chronic disease management. These products are positioned as alternatives or supplements to conventional pharmaceuticals, catering to health-conscious consumers.

• Health Supplement: This segment offers a range of dietary supplements, including vitamins, minerals, and herbal extracts, developed to address general wellbeing and specific health concerns. The products are distributed through multiple channels, including third-party e-commerce platforms and offline distributors.

• Skincare: This segment provides skincare products infused with traditional Chinese medicine ingredients, targeting consumers seeking natural and holistic beauty solutions. The products are designed to improve skin health while aligning with broader wellness trends.

• Wine: This segment includes health-oriented wine products, marketed for their potential wellness benefits when consumed in moderation. The offerings are positioned as lifestyle products for consumers interested in premium, health-conscious beverages.

CFOO operates in China’s Great Health Industry, a sector projected to reach approximately RMB 11.4 trillion by 2026, according to Frost & Sullivan and the China Business Industry Research Institute. Within this ecosystem, the functional foods and health supplements segment alone is expected to grow to RMB 483.3 billion, driven by increasing consumer adoption of preventive healthcare routines. The Company competes with both domestic and international players in the health and wellness space, including manufacturers of traditional Chinese medicine products, functional foods, and dietary supplements. CFOO’s competitive advantages include its integration of traditional Chinese medicine principles into product development, a multi-channel distribution strategy encompassing e-commerce and offline partnerships, and a focus on personalized health consulting to enhance customer engagement. However, the Company faces challenges from evolving regulatory landscapes, particularly in data privacy and cybersecurity, as well as competition from established brands with stronger market penetration.

The Company serves a broad customer base in China, including health-conscious consumers, fitness enthusiasts, and individuals seeking preventive healthcare solutions. Its products and services target all age groups, with a particular emphasis on younger demographics adopting wellness-focused lifestyles. CFOO leverages partnerships with third-party e-commerce platforms, such as Tmall and Jingdong Mall, to expand its reach, while also engaging with downstream distributors and wholesalers to strengthen its offline presence. Specific customer names are not disclosed, but the Company’s strategy focuses on building brand loyalty through social media, word-of-mouth marketing, and tailored health consultation services.