China Reform Health adjusts equity to optimize management, boost efficiency

China Reform Health Management And Services Group (CR Health) is undertaking significant internal restructuring. CR Health's wholly-owned subsidiary, Hainan Haihong Investment Consulting Co., Ltd., will transfer its 100% equity in Beijing Haixie Zhikang Technology Development Co., Ltd. (Beijing Haixie) to CR Health. This adjustment makes CR Health the direct owner of Beijing Haixie, the implementing entity for the "Marketing Network Upgrade Construction Project."

Additionally, CR Health's wholly-owned subsidiary, Yucheng Investment (Hong Kong) Co., Ltd., will transfer its 100% equity in Beijing Yihong Yitong Technology Services Co., Ltd. (Yihong Yitong) to CR Health for yuan 345,523,290.56. Both transactions are internal equity adjustments aimed at optimizing management layers and improving efficiency, without affecting CR Health's consolidated financial statements or its equity interests in the subsidiaries.

The company also announced internal transfers for Hainan Weihong Pharmaceutical E-commerce Co., Ltd. (80% from Hainan Haihong, 20% from CR Health) and CR Health Management And Services (Guangdong) Co., Ltd. (100% from CR Health Management And Services Co., Ltd.), consolidating 100% ownership under CR Health for both entities. These transactions have been approved by CR Health's board of directors.