Optimize existing business Hangzhou Haoyue Personal Care (605009.SH) intends to acquire the Nantong Dawang production line.

Announcement of Hangzhou Haoyue Personal Care (605009.SH): The company plans to invest in the establishment of a project company named Hangzhou Haoyue Personal Care Products (Nantong) Co., Ltd. in Nantong Economic and Technological Development Zone in Jiangsu Province, with a total investment of not more than 400 million RMB within three years. The company will purchase related assets (land use rights, factory buildings, and some equipment) held by Nantong Da Wang Household Products Co., Ltd. (referred to as "Nantong Da Wang") through the project company. The company is planning to sign an "Asset Transfer Agreement" with Nantong Da Wang, through the project company to purchase the land use rights of the first factory in the west zone (84,000 m2), factory building area (67,800 m2), and 11 sets of equipment related to infant diapers production in Nantong Economic and Technological Development Zone, with a transaction price of 266 million RMB. After purchasing these assets, the GOO.N brand infant diaper production business of Nantong Da Wang will be entrusted to external companies such as Hangzhou Haoyue Personal Care. The announcement stated that the purchase of Nantong Da Wang production line is based on the good utilization rate of the existing infant product equipment capacity. It is in line with the needs of the company's overall layout and development strategy, as well as the needs of new product development and sales channel expansion. It will fully utilize the advantages of the existing equipment and facilities of the target, reserve enough space for future business development, optimize existing business, and facilitate the formation of new profit growth points for the listed company.