(13 March 2020, 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 the Group’s indirect wholly-owned subsidiary, Shanghai Aohuiyan, has entered into a cooperation agreement with Guangzhou Aoying Investment, an indirect wholly-owned subsidiary of China Aoyuan Group Limited (“China Aoyuan”; SEHK stock code: 3883). Under the agreement, Guangzhou Aoying Investment will acquire a land plot in Fengxian District, Shanghai, for RMB61.50 million (equivalent to approximately HK$68.27 million) from the Group. The Group had previously won a bid for that land. China Aoyuan shall be responsible for the overall development, construction, operation and management of the project and will be entitled to 70% of the economic benefits arising from the project. By cooperating with China Aoyuan in that project, Aoyuan Healthy can continue to pursue its asset-light business model and is entitled to the remaining 30% of the economic benefits from the project. This can broaden Aoyuan Healthy’s income source and generate revenue from it in the long term.
Aoyuan Healthy extends the scope of its services to healthcare and medical beauty services to build a platform that can provide comprehensive healthcare services for customers. The move, which is aimed at diversifying the Group’s services, enhancing its service capability and improving the quality of its services, is also part of its plan for the upgrading and integration of its businesses. Meanwhile, China Aoyuan has extensive experience and financial resources, which make it an ideal partner in this project. This cooperation also means that more channels for acquiring and developing lands have been opened up for China Aoyuan, and thus be able to participate in land development in a more cost-effective way and make a greater profit. The cooperation is mutually beneficial for both China Aoyuan and Aoyuan Healthy in the long term, leading to a win-win situation.
The management of Aoyuan Healthy said, “Under the cooperation agreement, the Group will continue to pursue its asset-light business model. It will also be able to develop the land plot and, at the same time, seize the opportunities for investing in the businesses of healthcare and medical beauty services. The project to be undertaken is located in the “Oriental Beauty Valley” industrial park in Shanghai. The park is aimed at fostering the development of healthcare and medical beauty services and attracts numerous medical beauty service and biomedicine enterprises. This can facilitate the Group’s talent acquisition and its integration of resources in the industry. The Group has always focused on asset-light business operation. It will be entitled to 30% of the economic benefits arising from the project and thus will be able to share in the fruits of the development and operation of the project. This will broaden the Group’s source of income and maximise the shareholder value.”