China Tian Yuan Healthcare Group Limited (Stock Code: 557) announced further information regarding its acquisition of 70% equity interest in Ningxia Deshang Clinic Co., Ltd. (the “Target Company”), along with the associated profit forecast and valuation details. The announced consideration for the acquisition is RMB2,100,000, referencing a valuation of approximately RMB3,068,000 for the Target Company’s entire equity based on a discounted cash flow method under the income approach.

According to the announcement, the adoption of the income-based approach was determined after noting limited comparable market benchmarks and the Target Company’s stable operating data. Key factors in the valuation include historical and projected medical check-up volume, average price per customer, projected growth ratios, and profit margins. Crowe (HK) CPA Limited has verified the arithmetical accuracy of the projected discounted cash flows, and the board of directors has confirmed the profit forecasts were made with due care.

The Target Company specializes in medical check-up services in the PRC, showing historical revenue growth and a stable core operating team, yet remaining in a loss position prior to acquisition. China Tian Yuan Healthcare Group Limited expects to leverage its marketing resources, digital strategies, and healthcare management capabilities to facilitate service differentiation, enhance pricing strategies, and optimize operating structure. The transaction aims to broaden corporate and direct-to-consumer medical check-up offerings while integrating with the group’s existing consumer healthcare businesses. The board highlighted that synergy benefits are expected through an expanded customer base and refined brand positioning, advancing the group’s long-term growth strategy in the healthcare services sector.