Source: Media Outreach
The Acquisition Fulfills Aoyuan Healthy’s Deployment of Resources for Developing its Medical Beauty Business and Furthers the Development of its General Health and Wellness Business
The Move also Enhances Synergy Between its Businesses of Property Management, Commercial Property Operation and General Health and Wellness
HONG KONG, CHINA – Media OutReach – 21 September 2020 – Aoyuan Healthy Life Group Company Limited (“Aoyuan Healthy” or the “Group”; SEHK stock code: 3662), a reputable provider of property management service and commercial property operation service in the People’s Republic of China (“PRC”), is pleased to announce that the Group’s indirect wholly-owned subsidiary, Guangdong Xinyuerong Industrial Investment Company Limited, has agreed to acquire a 55% equity interest in Zhejiang Liantianmei Corporate Management Company Limited (“Liantianmei”) for a consideration of RMB 691.0 million. Aoyuan Healthy has been holding a 5% equity interest indirectly in Liantianmei. After the acquisition is completed, the Group’s holding in Liantianmei will increase to 60%. The Group plans to position Liantianmei as a leading medical aesthetic company. The move serves to fulfill Aoyuan Healthy’s deployment of resources for the development of its medical beauty business, which will enable the Group to provide healthy lifestyle services for the homeowners at the estates managed by the Group and consumers alike. The acquisition will also allow the Group to give its businesses of property management and commercial property operation full play and enhance the synergy between Aoyuan Healthy’s three core businesses.
Liantianmei is a leading medical aesthetic service group in Zhejiang province with a history of 37 years. As one of the pioneers in China’s medical aesthetic industry, Liantianmei has been providing comprehensive medical aesthetic services, including aesthetic surgery services, minimally-invisive aesthetic services and aesthetic dermatology services. It currently operates two private medical aesthetic hospitals with an aggregate operating area of approximately 30,000 square metres. They have qualifications to operate as formal medical institutions, and have attained both the “5A” Rating Management standards of management and possess the operational qualifications for standardized medical institutions, including the Qualification of Level 4 High Complexity Surgery. They also have a total of 24 registered patents. Liantianmei has won more than 60 accolades in recognition of its strong technical capabilities, strong brand, and competitiveness. It also has more than 300,000 customers.
Despite the epidemic outbreak, Liantianmei recorded unaudited turnover of RMB 211.7 million and net profit after taxation of RMB 46.2 million in the first half of 2020. The financial results exceeded expectations mainly on the back of rent control, employees’ resumption of work in stages, and arrangements on advertising cost, this has reflected the professionalism and systemic nature of a leading company, the rebounding needs of the existing customers, and the robust demand in the medical aesthetic industry.
The management of Aoyuan Healthy said that Aoyuan Healthy had been proactively seeking potential acquisition and cooperation opportunities. The Group has also been deepening and expanding diversified healthcare services. The acquisition of Liantianmei is part of the Group’s move to further develop its medical beauty business and to broaden and diversify its income stream, which is in line with Group’s development strategies to complement its property management services and commercial operational services. The Group believes that Liantianmei’s brand reputation and operation results will enhance the synergy between its three core businesses effectively, thereby fueling the Group’s business growth and strengthening its profitability. Looking ahead, Aoyuan Healthy will continue to develop its community healthcare and medical beauty services so as to provide its customers with a healthy living and social environment, and build a comprehensive healthy life platform. All these are the Group’s efforts to build a business that provides comprehensive healthy lifestyle services, which also serve to complement the Group’s businesses of property management services and commercial property operation. This can consolidate the Group’s leading positions in the respective industries and enables it to maximize the returns to shareholders.
The consideration for the acquisition will be paid and funded by a combination of the unutilized Net Proceeds, Group’s internal resources and bank borrowings. Meanwhile, in order to better utilize its financial resources capture favourable investment opportunities, the Group has decided to reallocate the proceeds from its global offering for the purposes of its business development — RMB 132.4 million of the unutilized net proceeds will be used for acquisition or investment in other commercial operational service and property management service providers, and 215.0 million of the proceeds for the acquisition or investment in service providers providing services complementary to the Group’s commercial operational services and property management services. The Group believes that the reallocation is consistent with its business strategy and will be conducive to its consistent and rapid development. The move will facilitate the Group’s deployment of its resources for the development of its existing businesses and is in the interest of the shareholders.
– Published and distributed with permission of Media-Outreach.com.