Focus on the Two Cores of Property Management and Commercial Operations
Synergize with General Healthcare Services
(17 December 2019, Hong Kong) Aoyuan Healthy Life Group Company Limited (“Aoyuan Healthy” or the “Group”; SEHK stock code: 3662), a reputable property management service and commercial property operation service provider in the People’s Republic of China (“PRC”), is pleased to announce that it has entered into a non-legally binding cooperation framework agreement with Shanghai Aoyuan Real Estate Company Limited, an indirect wholly-owned subsidiary of China Aoyuan Group Limited (the “China Aoyuan”, together with its subsidiaries (excluding the Group), the “China Aoyuan Group”; SEHK stock code: 3883) to conduct cooperation on the Fengxian Land Development Project.
With the help of the rich experience and advantages of parent company China Aoyuan Group in property development, Aoyuan Healthy plans to seize the unique strategic advantage in healthcare industry of Fengxian District, Shanghai City with China Aoyuan Group and to conduct cooperation on the Fengxian Land Development Project. In accordance with the cooperation framework agreement, China Aoyuan Group recognised the ability to integrate resources in the general healthcare industry and the overall strengths of business investment and property management of the Group, and China Aoyuan Group agreed to provide the Group with all-round assistance on the development of the Fengxian Land Plot, including being responsible for the costs of property construction, installation of equipment and subsequent costs in the project. The Group expects that upon completion of the development of the Land Plot, the Group will provide light-asset services such as property management, investment promotion and general healthcare industry operational services, and will also charge a reasonable price for operation charges in relation to management and brand export.
Aoyuan Healthy has a clear positioning as a light-asset service business operator. The development of diversified general healthcare industry will also be carried out in a light-asset model. Aoyuan Healthy has always seized the opportunities brought by the development of policy of the areas supported by China’s national development strategies, such as the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area, to extend the coverage of its business. The Group announced to enter the market of Shanghai Fengxian, the “Oriental Beauty Valley”, earlier this month, attracting more quality resources of general healthcare and medical beauty. This will lay the foundation of the provision of higher quality diversified healthcare services, facilitate diversified development and advance in unison.
The management of Aoyuan Healthy said, “The current business fundamentals of the Group are stable and the cooperation with China Aoyuan Group can lay a solid foundation for the Group’s high-quality and comprehensive healthcare services. Also, this cooperation will create an “Oriental Beauty Valley” model for the development of the Group’s healthcare and medical beauty businesses. Looking forward, The Group will develop three major businesses in a light-asset model. While maintaining its leading position of property management service and commercial operational service provider, the Group will actively develop general healthcare industry, focusing on medical beauty and community healthcare. The Group looks forward to extending the development model of the healthcare and medical beauty businesses to other cities in China in the future, thus creating better return for its shareholders.”