• The Acquisition Fulfills Aoyuan Healthy's Deploymentof Resources for Developing its Medical Beauty Business and Furthers the Developmentof its General Health and Wellness Business
• The Move also Enhances Synergy Between its Businessesof Property Management, Commercial Property Operation and General Health and Wellness         

HONG KONG, CHINA - Media OutReach - 21 September 2020 - Aoyuan Healthy Life Group Company Limited ("Aoyuan Healthy" or the "Group"; SEHK stock code: 3662), a reputable providerof property management service and commercial property operation service in the People's Republic of China ("PRC"), ispleased to announce that the Group's indirect wholly-owned subsidiary,Guangdong Xinyuerong Industrial Investment Company Limited, has agreed toacquire a 55% equity interest in Zhejiang Liantianmei Corporate ManagementCompany Limited ("Liantianmei") for a consideration of RMB 691.0 million. AoyuanHealthy has been holding a 5% equity interest indirectly in Liantianmei. Afterthe acquisition is completed, the Group's holding in Liantianmei will increaseto 60%. The Group plans to position Liantianmei as a leading medical aesthetic company.The move serves to fulfill Aoyuan Healthy's deployment of resources for thedevelopment of its medical beauty business, which will enable the Group to providehealthy lifestyle services for the homeowners at the estates managed by theGroup and consumers alike. The acquisition will also allow the Group to give its businesses of propertymanagement and commercial property operation full play and enhance the synergybetween Aoyuan Healthy's three core businesses.

Liantianmei is a leading medical aesthetic servicegroup in Zhejiang province with a history of 37 years. As one of the pioneers inChina's medical aesthetic industry, Liantianmei hasbeen providing comprehensive medical aesthetic services, including aesthetic surgeryservices, minimally-invisive aesthetic services and aesthetic dermatology services.It currently operates two private medical aesthetic hospitals with an aggregateoperating area of approximately 30,000 square metres. They have qualificationsto operate as formal medical institutions, and have attained both the "5A" RatingManagement standards of management and possess the operational qualifications forstandardized medical institutions, including the Qualification of Level 4 High ComplexitySurgery. They also have a total of 24 registered patents. Liantianmei has wonmore than 60 accolades in recognition of its strong technical capabilities, strongbrand, and competitiveness. It also has more than 300,000 customers.

Despite the epidemic outbreak, Liantianmeirecorded unaudited turnover of RMB 211.7 million and net profit after taxationof RMB 46.2 million in the first half of 2020. The financial results exceededexpectations mainly on the back of rent control, employees' resumption of workin stages, and arrangements on advertising cost, this has reflected the professionalismand systemic nature of a leading company, the rebounding needs of the existingcustomers, and the robust demand in the medical aesthetic industry.  

The management of Aoyuan Healthy said that AoyuanHealthy had been proactively seeking potential acquisition and cooperationopportunities. The Group has also been deepening and expanding diversifiedhealthcare services. The acquisition of Liantianmei is part of the Group's move to further develop its medicalbeauty business and to broaden and diversify its income stream, which is inline with Group's development strategies to complement its property managementservices and commercial operational services. The Group believes that Liantianmei'sbrand reputation and operation results will enhance the synergy between itsthree core businesses effectively, thereby fueling the Group's business growthand strengthening its profitability. Looking ahead, Aoyuan Healthy will continueto develop its community healthcare and medical beauty services so as to provideits customers with a healthy living and social environment, and build a comprehensivehealthy life platform. All these are the Group's efforts to build a business thatprovides comprehensive healthy lifestyle services, which also serve to complementthe Group's businesses of property management services and commercial property operation.This can consolidate the Group's leading positions in the respective industriesand enables it to maximize the returns to shareholders.  

The consideration for theacquisition will be paid and funded by a combination of the unutilized NetProceeds, Group's internal resources and bank borrowings. Meanwhile, in orderto better utilize its financial resources capture favourable investment opportunities,the Group has decided to reallocate the proceeds from its global offering forthe purposes of its business development -- RMB 132.4 million of the unutilized net proceeds will be used for acquisitionor investment in other commercial operational service and property management serviceproviders, and 215.0 million of the proceeds for the acquisition or investment inservice providers providing services complementary to the Group's commercial operationalservices and property management services. The Group believes that the reallocationis consistent with its business strategy and will be conducive to its consistentand rapid development. The move will facilitate the Group's deployment of itsresources for the development of its existing businesses and is in the interestof the shareholders.

About Aoyuan Healthy Life Group Company Limited

Aoyuan HealthyLife Group Company Limited is a reputable property management service andcommercial property operation service provider in the PRC offering diverseproperty management services for residential and non-residential properties anda full range of commercial property operation services for shopping malls, witha focus on mid-range and high-end properties and mixed-use properties. TheGroup provides healthcare services in the properties under management, strivesto develop a featured TCM and medical beauty community, and is also activelyexpanding its value-added services to enhance customer satisfaction.