Hangzhou Haoyue Personal Care (605009.SH) plans to invest up to 20 million US dollars to establish an overseas subsidiary in Egypt and build a production base.

Hangzhou Haoyue Personal Care (605009.SH) has announced that, in accordance with the company's overall strategic plan and the need to expand its overseas business, the company has jointly established a wholly-owned subsidiary, Bailian Health Care Products Egypt Limited Company, in Egypt with its wholly-owned subsidiary, Hainan Bailian Investment Trade Co., Ltd. (referred to as "Hainan Bailian"). The company and Hainan Bailian have respectively contributed 1% and 99% of the total investment amount, which is expected to not exceed 20 million US dollars (the actual investment amount will be subject to the approval of the Chinese and local regulatory authorities). The investment funds will primarily be used for the establishment and operation of the overseas company, land purchase, factory construction, equipment procurement, and working capital, among other related matters. The establishment of Bailian Health Care Products Egypt is aimed at promoting the localization of manufacturing and sales in the Egyptian region, expanding market opportunities, improving customer response efficiency, and further enhancing the overall profitability of the company. The investment in establishing a new production base in Egypt will help the company achieve localized production and supply, increase the market share of products in Egypt, shorten supply cycles, reduce logistics costs, and optimize regional competitiveness. By establishing a localized marketing system, implementing channel penetration, and enhancing the influence and profitability of the company's own brands. After the establishment of the overseas company, its operating situation will be included in the company's consolidated financial statements, playing a positive role in improving performance and increasing profits for the company.