Haoyue Nursing plans to purchase KAO Hefei factory and establish a branch in Hefei

On January 31, 2024, Hangzhou Haoyue Nursing Products Co., Ltd. (hereinafter referred to as "Haoyue Nursing") announced that it plans to invest in and establish Haoyue Nursing Products (Hefei) Co., Ltd. in Hefei Economic Development Zone (specific registration name shall prevail), with an expected total investment of no more than 500 million yuan within 3 years. The business scope mainly includes non-woven fabrics, composite cores, wet toilet paper, wet wipes, disposable underwear, women's menstrual products, baby diapers, adult incontinence products and other products’ production and sales.

Haoyue Hefei plans to use its own or self raised funds (not exceeding 235 million yuan) to purchase 123924.69 square meters of land, 116742.03 square meters of buildings, building facilities, 10 lines of baby diapers/pull-up pants equipment and their ancillary facilities/accessories held by Hefei KAO in Hefei Economic and Technological Development Zone, Anhui Province, through cash. According to the announcement, this transfer is an intentional cooperation agreement, representing only the cooperation intention of both parties. The formal asset purchase agreement has not been signed yet, and the specific cooperation content will be subject to the formal asset purchase agreement signed in the future.

Haoyue Nursing's purchase of the Hefei KAO production line this time is based on the company's good utilization of existing baby product equipment production capacity. In accordance with the overall layout and development strategy of the enterprise, as well as the needs of new product research and development, and the expansion of new sales channels, the company will fully utilize the advantages of the existing facilities of the target object's factory and warehouse, reserve enough space for future business development, optimize existing business, and form new profit growth points, enhance the company's ability to sustain operations and overall competitiveness.