Tianyuan Health (00557) subsidiary intends to sell 60.8077% equity of Shanghai Rifuzheng Industry for 23 million yuan.
Tianyuan Medical (00557) announced that on June 9, 2026, Hengqin Hanyue Mei (indirect wholly-owned subsidiary of the company) entered into a stock transfer agreement with the buyer Shenzhen Zehua International Trading Co., Ltd., under which Hengqin Hanyue Mei intends to sell the equity interests (accounting for 60.8077% of the target company) to the buyer for a price of RMB 23 million.
TIAN YUAN HEALTH (00557) announces that on June 9, 2026, its indirect wholly-owned subsidiary, Hengqin Hanyue Mei, entered into a share transfer agreement with the buyer Shenzhen Zehua International Trading Co., Ltd. Under this agreement, Hengqin Hanyue Mei intends to sell the target company's shares (representing 60.8077% of the target company's equity) to the buyer for RMB 23 million.
Upon completion of the transfer, the target company, Shanghai Riyu Industrial Co., Ltd., will no longer be a subsidiary of the group, and its financial performance, assets, and liabilities will no longer be consolidated into the group's financial statements.
The company continues to evaluate its existing business strategy in order to seek feasible paths to improve overall performance. The target group's financial performance is mainly derived from the medical-related business of Shanghai Hospital. Shanghai Hospital completed renovations and reopened at the end of 2025, but its subsequent performance was much lower than expected. Despite management's efforts to transform towards non-invasive light medical beauty services, the transformation did not yield the desired results, and the hospital continued to incur losses. Due to Shanghai Hospital's tight cash flow, it is difficult to cover basic administrative and operating expenses, posing a significant pressure on the group's overall financial condition. Considering (1) the need for the group to continue to inject significant funds if it continues to operate Shanghai Hospital, (2) intensifying competition in the medical beauty industry leading to extended profitability cycles for new institutions, and (3) the diversion of management resources from the group's focus on the strategic direction of health management business due to continued operation, the company believes that terminating or selling the business of Shanghai Hospital will help improve the group's overall financial performance.
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