Zhitong Finance APP: Meilitianyuan Medical Health (02373) announced that, according to the terms and provisions of the investment agreement, the acquisition has been completed. Shortly after completion, the Nurie brand, which constitutes the target assets, as well as the beauty and health service stores, medical beauty stores, and traditional Chinese medicine clinics within the scope of the investment agreement, will be operated by the group. The target group has become a non-wholly-owned subsidiary of the group, and its financial statements will be consolidated into the comprehensive financial statements of the company.

Based on this, the total number of Meilitianyuan stores, including the Nurie cooperation framework agreement stores, currently exceeds 550, significantly consolidating its leading position in the industry.

The company happily announced that, in terms of completion, Shenzhen Nurie and Guangzhou Beiminsheng reached a cooperation framework agreement with an initial term of three years, effective from September 1, 2024, as well as a leasing framework agreement with a validity period from September 1, 2024 to June 30, 2026.

After the completion of the acquisition and the signing of the cooperation framework agreement, Meilitianyuan has fully integrated the Nurie brand and its 150 stores into the group. Therefore, the total number of Meilitianyuan stores has now exceeded 550, greatly enhancing Meilitianyuan's leading position in the industry.

The company believes that the cooperation framework agreement brings significant benefits to the group, including:

1. Expansion of coverage, brand influence, and market share: After joining the group, the Nurie brand has achieved a dual operation structure of direct operation and franchise. In core cities such as Guangzhou and Shenzhen, stores will mainly operate in a direct mode, expanding the scale of revenue from medical beauty services and sub-health medical services by improving their quality. In cities such as Zhuhai, Foshan, Dongguan, and Wuhan, Nurie stores operate in a franchise model, achieving nationwide brand coverage. The alliance between Meilitianyuan and Nurie, the two leading companies in the beauty industry, further consolidates and enhances the group's market share in the beauty and health industry.

Sharing medical resources to improve operational efficiency through economies of scale: The group will have a large customer base of directly operated and franchised health customers of Nair. At the same time, Nair will also benefit from the medical resources and strong digital systems of Beautiful Country's value-added services. Under the franchise arrangement, to further leverage the above advantages, both parties will integrate the supply chain and digital systems, enabling Beautiful Country to achieve additional benefits of scale operation, such as improving operational efficiency and profit levels.

Increasing profits and revenue scale: The franchise arrangement greatly expands the coverage of Beautiful Country stores and the membership base, generating revenue including franchise fees, system usage fees, training fees, and product supply procurement costs, promoting the growth of the company, while increasing its revenue and profit scale.

The comprehensive integration of Nair is an important measure of the group's long-term strategy to expand its market share in the health industry. Nair's brand is rooted in traditional Chinese medicine, with unique advantages in the category of health products. Nair's health strategy aligns highly complementarily with Beautiful Country's beauty strategy. The integration of the two parties will effectively strengthen the foundation of the group's increasingly developing "beauty and health" ecosystem, and the deep business synergy between the two will also unleash greater growth potential for the group's long-term development.