Hile Bio-Technology boosts control in subsidiary, launches wealth management program

Shanghai Hile Bio-Technology announced the acquisition of a 41% minority stake in its subsidiary, Shaanxi Ruisheng Biotechnology Co., Ltd., from Maylion Management Limited. This transaction, valued at 399,300,000 yuan, stems from an adjustment to a previous equity transfer and a settlement of an accounts receivable balance due from Maylion. The acquisition increases Hile Bio-Technology's ownership in Ruisheng to 96%, reinforcing its control over the profitable subsidiary and streamlining its oral care business.

Maylion's inability to timely repay a transaction difference led to this equity-based settlement. Maylion is still committed to a performance promise for Ruisheng, guaranteeing audited net profits of no less than 23,300,000 yuan for 2024, 2025, and 2026. As part of the arrangement, Maylion's remaining 4% equity in Ruisheng and 50,000,000 yuan previously paid will be used as collateral.

Concurrently, the company also announced a plan to utilize idle funds up to 500,000,000 yuan for wealth management products. This initiative aims to enhance capital efficiency and generate investment income, with investments in bank, brokerage, trust, and fund management products.