Dahu Aquaculture Co.Ltd(600257) : optimize asset structure and accelerate the layout of big health industry

On January 17, Dahu Aquaculture Co.Ltd(600257) announced that in order to cooperate with the local government to make overall arrangements and promote the water environment improvement of Hunan East Lake water system, the company decided to transfer its 54.67% equity of Hunan East Lake fishery Co., Ltd. (hereinafter referred to as “East Lake Company”) to Huarong Xinyuan Agricultural Development Co., Ltd. (hereinafter referred to as “Xinyuan agriculture”).

According to the announcement, since the ecological restoration of water environment is a complex systematic project with a relatively long cycle, in order to ensure the smooth progress of the water environment treatment of East Lake and maintain the normal development of the company as a private economic subject, based on the existing financial situation of East Lake company and the high ecological environment damage restoration liability that may be faced in the future, Dahu Aquaculture Co.Ltd(600257) agreed to transfer 54.67% of the equity of Donghu company to Xinyuan agriculture (an enterprise invested by Huarong County Finance Bureau) with RMB 1 yuan. After this transfer, Dahu Aquaculture Co.Ltd(600257) no longer holds the equity of Donghu company.

On the same day, the company also announced that, in order to meet the requirements of Hunan Province and Changde City on the comprehensive treatment of the water environment of beimin Lake in Li County, the Li county government, the company agreed, and through many consultations, the two sides agreed to reach the agreement on lifting the merger of beimin lake fishing ground

Agreement of the parties. After the termination of the agreement, the company will no longer have the right to use beimin lake surface aquaculture.

The signing of the equity transfer and cancellation agreement demonstrates the company’s attitude of actively responding to the call of the national water environment governance. In line with the company’s strategic development of “health products + health medical services”, it is conducive to promoting the adjustment and optimization of the company’s asset structure and concentrating on the development of the company’s core industries.

On the basis of actively improving the operation and management level, reducing costs and increasing efficiency, in addition to continuously improving the layout of health products, the company also actively develops health medical service business, creates a large health whole industry chain, and promotes the upgrading and development to a large health industry.

The company’s health care service business is mainly dominated by Dongfang Huakang, a holding subsidiary. It is reported that the five rehabilitation and nursing medical institutions operated by Dongfang Huakang can open about 2100 professional rehabilitation nursing beds, which are located in the economically developed areas of the Yangtze River Delta and are all areas with large demand for rehabilitation nursing beds in China.

Li Aichuan, deputy general manager and President of Dongfang Huakang, said that according to the company’s “14th five year plan”, rehabilitation hospitals and nursing homes will be set up in many places in Zhejiang in the future, including Hangzhou Dongfang Huakang rehabilitation hospital and Hangzhou Jincheng nursing home disclosed last year.

It is reported that Hangzhou Dongfang Huakang rehabilitation hospital and Hangzhou Jincheng nursing home are both located in Xiaoshan District, Hangzhou. They are also concentrated in the economically developed areas of the Yangtze River Delta, forming a good coordinated development pattern with the five rehabilitation, nursing and medical institutions in operation, It further reflects that the holding subsidiary takes the strategic development of “based on Shanghai, radiating East China and facing the whole country” as the long-term goal and the strategic layout of “scale, branding, chain and specialization”.

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