Humanwell Healthcare's Subsidiary to Divest 16.34% Stake in Lifestyles for at Least RMB 1.056 Billion

Stock News06-04

Humanwell Healthcare(Group)Co.,Ltd. (ASX: 600079) has announced that its wholly-owned subsidiary, RFSW Holding Pte. Ltd., intends to publicly list for transfer its holding of 81.70 million shares, representing a 16.34% stake, in Lifestyles Health Industry Co., Ltd. via a property rights exchange.

The listing price is expected to be no lower than the assessed value of RMB 1.056 billion for this 16.34% equity interest. This transaction will not affect the scope of the company's consolidated financial statements. Upon completion of the deal, the company will no longer hold any equity in Lifestyles.

In recent years, the company has rigorously implemented its strategy of refocusing on core businesses and actively promoted business concentration and asset optimization. The proceeds from this asset sale will be allocated to the company's production and operational activities, which may include repaying interest-bearing debt and supplementing working capital for the company and its controlled subsidiaries.

This move is expected to further optimize the company's asset-liability structure, concentrate resources on developing competitive niche areas, and align with the company's strategic development and long-term interests. The final transaction price remains uncertain. If calculated based on the assessed value of RMB 1.056 billion, the transaction is estimated to impact current profits and losses by approximately RMB 500 million, which would have a positive effect on the company's financial position.

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