lightninglinkcasino| Puhua Heshun (01358.HK) plans to spin off its subsidiary Sichuan Ruijian Medical to be listed on the New Third Board

Gelonghui May 20 丨 Puhua Heshun (01358lightninglinkcasino.HK) announced that the company is considering proposing to spin off its non-wholly owned subsidiary Sichuan Ruijian Medical to be independently listed on the National Small and Medium Enterprise Share Transfer System (not issuing new shares ()"National Small and Medium Enterprise Share Transfer System Listing"), and subsequently listed on the Beijing Stock Exchange based on market conditions at the time and strategic development needs ("Subsequent Listing", together with listing on the National Small and Medium Enterprise Share Transfer System, collectively referred to as the "Proposed Splitting").

Depending on market conditions at that time, Sichuan Ruijian Medical plans to submit an application for listing in the National Small and Medium-sized Enterprise Share Transfer System as early as the second quarter of 2024.

The company expects that the listing of the national small and medium-sized enterprise share transfer system will not involve Sichuan Ruijian MedicallightninglinkcasinoAny new share issuance of Sichuan Ruijian Medical, and subsequent listings will involve the new share issuance of Sichuan Ruijian Medical, subject to approval from relevant authorities such as the China Securities Regulatory Commission and the Beijing Stock Exchange and, if required in accordance with the Listing Rules, shareholders 'approval. Sichuan Ruijian Medical intends to continue to be a subsidiary of the Company after the proposed spin-off is completed, subject to assessment by the Company and its auditors in accordance with Hong Kong Financial Reporting Standards.

The Board of Directors believes that the proposed spin-off is fair and reasonable and in the overall interests of the Company and its shareholders for the following reasonslightninglinkcasino:(1) In terms of market size and growth prospects, China's blood purification medical equipment market has huge potential demand. It is expected that the proposed spin-off will enhance Sichuan Ruijian Medical's reputation and image in the Chinese market, enhance its ability and opportunities to seize and benefit from such market growth, and may increase sales and market share. As its reputation and image improve, Sichuan Ruijian Medical expects to have more opportunities to win the bid, attract human resources and receive government subsidies;(2) It is also expected that the proposed spin-off will enable Sichuan Ruijian Medical Group to clearly define its business priorities, which will help to further consolidate its leading position in the blood purification industry with its comprehensive R & D, manufacturing, sales and services;(3) The proposed spin-off will release embedded value for shareholders and help identify and establish the fair value of the company's blood purification medical device business, especially the fair value represented by Sichuan Ruijian Medical Group's profitability and technology in the field of blood purification medical devices;(4) The proposed spin-off will allow Sichuan Ruijian Medical to directly access the domestic capital market, expand its financing channels and enhance its financing capabilities; and (5) the proposed spin-off will provide the market with a clear understanding of Sichuan Ruijian Medical's business and financial situation and help improve its own corporate governance.