Shanghai Hile Bio-Technology (603718.SH) plans to invest in the establishment of a secondary subsidiary and acquire equity in seven dental chain companies in Yangzhou and Changzhou.

Shanghai Hile Bio-Technology (603718.SH) announced that in order to further strengthen the unified management of its dental chain companies and improve operational efficiency, its holding subsidiary Ruisheng Bio intends to establish Jiangsu Haili Dental Medical Management Co., Ltd. in partnership with Zou Chunyang and Xie Shouliang in Changzhou City, Jiangsu Province (tentative name, subject to final approval by the market supervision department), to serve as the management platform company for future dental chain business. Ruisheng Bio will hold 51% of the shares, Zou Chunyang will hold 44%, and Xie Shouliang will hold 5%, making it a subsidiary of Ruisheng Bio and a second-level subsidiary of the company. After the establishment of Haili Dental, and upon the completion of the transfer of ownership of seven dental chain companies (including Yangzhou Jinbolili Dental Hospital Co., Yangzhou Jinbolili Dental Clinic Co., Yizheng Jinbolili City Dental Clinic Co., Changzhou Wujin Jinbolili Dental Clinic Co., Changzhou Tianning Longyang Jinbolili Dental Clinic Co., Liyang Jinbolili Dental Clinic Co., and Liyang Licheng Jinbolili Dental Clinic Co.) in Yangzhou and Changzhou following the completion of commercial transfer procedures, Haili Dental intends to acquire 100% of the shares of the seven dental chain companies held by Ruisheng Bio, Zou Chunyang, and Xie Shouliang respectively. Upon completion of the transfer of ownership, Haili Dental will directly hold 100% of the shares of the seven dental chain companies in Yangzhou and Changzhou, while Ruisheng Bio, Zou Chunyang, and Xie Shouliang will indirectly hold 51%, 44%, and 5% of the shares of the seven dental chain companies in Yangzhou and Changzhou through their ownership of shares in Haili Dental.