Beingmate Co., Ltd (002570.SZ) announced that, to integrate and improve the Beingmate new retail system, further develop Beingmate online business and expand Beingmate cross-border business, and fully utilize the policy support given by the local government and the location advantage of Tonglu as the private express delivery center of China, the company plans to jointly invest with Tonglu Science and Technology Innovation Industrial Development Investment Co., Ltd. (hereinafter referred to as "Tonglu Development") under the County State-owned Assets Supervision and Administration Commission of Tonglu County, Hangzhou, to establish Beingmate (Hangzhou) New Retail Co., Ltd. (tentative name, subject to registration with the market supervision and administration department). The registered capital of the company is RMB 0.1 billion yuan, in which Beingmate will contribute RMB 80 million yuan with its own funds, accounting for 80% of the registered capital; Tonglu Development will contribute RMB 20 million yuan with its own funds, accounting for 20% of the registered capital. The joint venture will become a wholly-owned subsidiary of the company and will be included in the company's consolidated financial statements after its establishment.
On July 18, 2024, the company held the second meeting of the ninth Board of Directors, with 8 votes in favor, 0 votes abstaining, and 0 votes against, to approve the "Proposal on Joint Investment with Tonglu Science and Technology Innovation Industrial Development Investment Co., Ltd. to Establish a New Retail Joint Venture". The external investment matters have been approved by the Board of Directors and do not need to be submitted to the shareholders' meeting for approval. The transaction does not involve related party transactions, nor does it constitute a significant asset restructuring as defined in the Measures for the Administration of Major Asset Restructuring of Listed Companies.
The establishment of a joint venture between the company and Tonglu Science and Technology Innovation Industrial Development Investment Co., Ltd. is an investment decision made by both parties based on the future development. Tonglu County, as a model of the future city on the banks of the Fuchun River in Hangzhou, which integrates technology, health and slow life, has built the Chinese Express Logistics Equipment Material centralized procurement and trading center, urban express collection and transportation center, and express logistics value-added service center to promote the development of the express delivery industry. For over 30 years, the company has been deeply engaged in the development of the maternal and child ecology and successfully went abroad in 2015, with related products being selected as the designated baby products of the 2015 Milan Expo. The cooperation with Tonglu County aims to create a global parent-child health platform system with humanistic care, brand, technology and integration of production, supply and marketing through the integration of the advantages of both parties. This external investment is a response to the call for high-quality development of foreign trade by the country and will not harm the interests of the company, shareholders, especially small and medium-sized shareholders.