SAINT BELLA GP (02508) to spend about 22.4 million yuan to acquire a minority stake in the maternity center business under Freya.

SAINT BELLA GP (02508) announced that the group has completed a strategic acquisition of a minority stake in the postpartum care business of Wuhan Freya Health Management Co., Ltd. (Freya) from several independent third parties (sellers), with a total consideration of approximately RMB 22.4 million. The equity acquired in this acquisition includes: (i) 30% equity of Wuhan He'an Maternal and Child Care Co., Ltd.; (ii) 30% equity of Wuhan Chenyue Maternal and Child Care Co., Ltd.; (iii) 40% equity of Wuhan Jiayuehui Health Consulting Co., Ltd.; and (iv) 40% equity of Wuhan Fenghua Health Consulting Co., Ltd. (collectively referred to as the "target companies"). According to the agreement between the parties in this acquisition, the group has the right to appoint the majority of directors of Wuhan He'an Maternal and Child Care Co., Ltd., Wuhan Chenyue Maternal and Child Care Co., Ltd., and Wuhan Jiayuehui Health Consulting Co., Ltd. Therefore, after this acquisition is completed, the financial performance of these companies will be included in the group's consolidated financial statements. According to the agreement between the parties in this acquisition, if the target companies achieve the agreed performance targets within the specified period, the company has the right to request the sellers to sell additional equity of the target companies to the group at the same price-to-earnings (P/E) ratio, increasing the group's ownership in the target companies to approximately 60% to 80%. It is reported that Freya was founded in 2013 and is a leading brand in the high-end maternal and child care industry in Wuhan. Freya operates three self-operated stores in the core commercial area of Wuhan, with over 160 postpartum rooms. With an average customer price of nearly RMB 50,000, the brand has served nearly ten thousand high-net-worth families and established a solid reputation and regional brand influence in the high-end maternal and child care market in Wuhan. This acquisition is another important practice for the group under the "endogenous growth + external merger and acquisition" dual-driven strategy, following the acquisition and integration of the female health brand Guanghetang in 2022, the reorganization and acquisition of Shanghai Yuezige in 2023, and the mergers and integrations of eight postpartum care suppliers in core regions such as the Yangtze River Delta and the Pearl River Delta, marking the official coverage of the group's national service network in the central core area of China. The Board believes that this acquisition aligns with the group's overall development strategy and will further consolidate the group's leading position in the postpartum care industry in China and Asia. With the continuous inclusion of high-quality regional assets, the deep release of operational synergy, the accelerated network effect of the brand matrix, and the accelerated expansion of the global map, the scale effect and profitability of the group's main business are expected to gradually improve, opening up broad space for long-term value growth for shareholders.