Gelonghui, April 19 | Dongyuan Renzhi Service (02352.HK) announced that on April 19, 2024, the company (as the buyer), Shanghai Dixuan (as the seller) and the target company entered into an equity transfer agreement. According to this, the company conditionally agreed to buy and Shanghai Dime conditionally agreed to sell about 90.73% of the target company Shanghai Changqingshe Health Enterprise Development Co., Ltd. at a cost of RMB 25.4 million.
Target Group is mainly engaged in the medical and pension service industry in China. Target Group relies on the four major pension products of home communities, institutional care, nursing and rehabilitation institutions, and specialist institutions, and focuses on middle and high-end institutional pension and community home pension projects. Currently, it operates more than 12 pension institution projects, manages more than 50 community service sites, operates more than 2,000 beds, and has more than 20,000 users.
The target company was established in April 2020 and is mainly engaged in (among others) health consultation services and cleaning and disinfection services.
As China's aging population intensifies, demand in the medical and pension services industry continues to increase. The acquisition of target companies will enable the Group to seize the opportunity and seize the expansion opportunities in this industry. The directors believe that with the Group's experience in providing services to hospitals, medical facilities, and residential areas, as well as increasing management projects and management area, the target company can increase more market opportunities in community pension, institutional care and healthy meals. At the same time, relying on the target company's medical service capabilities, the Group can further reach deep strategic cooperation with departments such as the Civil Affairs and Health Commission, use existing knowledge to diversify revenue sources, and will continue to work to achieve the Group's business growth.
The directors believe that the acquisition of the target company will contribute to the Group's long-term steady growth and create better returns for shareholders.