Zhejiang Fu Run (600070): Intends To Transfer Fu Run Hai Mao, Fu Run Clothing And People's Drugstore Equity Gradually Stripped Of Inefficient Assets

600070.SH) announced that in accordance with the strategic plan of "gradually separating the inefficient assets and gradually forming clear main industries", in order to develop the core business of concentrating resources and improve the profitability of listed companies, after consultation, the company intends to transfer to the controlling shareholder, Fu run Holdings Limited (the "Fu run Holdings"), at a price of about 19 million 7 thousand and 500 yuan, to transfer the holding subsidiary, Zhejiang Fu run Hai Mao textile and Textile Co., Ltd. ("Fu run Hai Mao"), with a 50% stake in the transfer price of about 3 million 401 thousand and 400 yuan to the joint venture enterprise, Zhuji finun Garments Co., Ltd. ("Fu run dress") 34% stake, and to transfer the shares of the Zhuji people's pharmacy chain Co., Ltd. ("people's Drugstore") at a price of about 162 thousand and 300 yuan. Zhejiang Fu run (

After the transfer is completed, the company will no longer hold the shares of Fu run Hai Mao, Fu run costumes and people's drugstores.

In view of the three companies of Fu run Hai Mao, Fu run clothing and people's drugstore, which are small in scale and poor in performance, in accordance with the strategic plan of "gradually stripping off inefficient assets and gradually forming a clear main business", we have carefully studied and decided to transfer the above shares for the purpose of concentrating resources to develop core businesses and improving the profitability of listed companies.

After preliminary calculations, the above transaction is expected to earn a net profit of 6 million 500 thousand yuan. Fu run Hai Mao is no longer included in the company's consolidated statement from the date of completion of the registration of industrial and commercial change.