He Raised Funds For Two Businesses: Baby And Medical Beauty.

2 announcement, the company intends to terminate

The company's actual controller Shen Dongri and Shen Hua brother and sister decided to plan for the issue of non-public offering shares. The purpose of the fund-raising uses is mainly for two business segments of baby and medical beauty, and no major asset purchase is involved in the two major industries.

After the company's application, the company's stock has been suspended since June 3, 2016, and the suspension period will not exceed 10 trading days, that is to say, it will resume trading at the latest in June 21, 2016.

The notice points out that the company has suspended its business since the afternoon of December 22, 2015 due to the planning of major acquisitions. As a result of this major asset reorganization, many medical beauty industry related underlying assets (hereinafter referred to as "medical beauty standards companies") have been added to the fashionable e-business related underlying assets (hereinafter referred to as the "fashion e-commerce company"), which has increased the difficulty and complexity of the relevant design, and the workload of the audit and evaluation.

In order to ensure the smooth implementation of this major asset reorganization, the company held the first provisional shareholders' meeting on March 29, 2016, and agreed that the company's stock will continue to be suspended, and the suspension period will not exceed 6 months, that is, it will be resumed by June 22, 2016 at the latest. This is the first time in 2016.

The company said that the major asset reorganization of this plan involves a number of target companies in the two industries of fashion e-commerce and medical beauty.

Among them, the business of the fashion e-commerce company involves cross-border import procurement.

Since April 2016, influenced by macroeconomic fluctuations, devaluation of RMB and adjustment of industrial policies, cross-border import e-commerce industry is facing new market competition pattern and government regulatory environment. The whole industry has entered a period of adjustment after rapid growth.

The company pays close attention to the changes in the relevant policy market environment and the operating performance and growth of the target companies in the due diligence investigation of the fashionable e-commerce companies, and repeatedly demonstrates the agreement with the other parties in terms of paction plan, paction price, business development plan and the realization of the promised performance, and finally fails to reach an agreement.

In order to fully protect the interests of listed companies and all shareholders, the company decided to terminate the acquisition of fashionable e-commerce companies after careful consideration.

In order to speed up the establishment of the "Pan fashion industry interconnected ecosystem", the company has incorporated the medical beauty plate into the fashion industry of the company's future development since 2015.

In April 2016, through a series of commercial negotiations, the company completed the signing of the agreement on the acquisition of Dream Medical Group Co., a famous medical beauty care group in South Korea, and has long been committed to mining high-quality assets and industrial development opportunities at home and abroad in the medical beauty industry.

In March 2016, the company promoted the major asset reorganization of the company targeting the fashionable e-commerce. At the same time, it also included many high-quality enterprises in the medical beauty industry of Sichuan Milan Bai Yu medical beauty hospital limited, Shenzhen Milan Bai Yu Medical Beauty Clinic limited, Sichuan crystal skin medical beauty hospital limited and Xi'an crystal skin beauty treatment Co., Ltd., and so on, and entrusted the relevant intermediary agencies to assist the company in conducting a due diligence investigation on the above medical cosmetic companies.

As of the announcement date, the company has basically completed the due diligence and project evaluation of the above medical beauty label companies. The company is speeding up discussions with the trading partners on the core provisions of the equity pfer agreement, such as trading scheme, paction price and payment, profit undertaking and compensation, and strives to complete the formal agreement with the counterparty as soon as possible, and the company will perform decision-making procedures and information disclosure in accordance with relevant regulations.

In view of the fact that the company terminates the acquisition of the fashionable e-business target company, the paction of the company that intends to purchase the above medical beauty label company no longer meets the standards of major asset reorganization stipulated in the management measures of the major asset reorganization of the listed company, and the company has decided to terminate the planning of this major asset reorganization.

The company said that taking into account the needs of the company in the development of the baby business sector and the need for the business development of the medical beauty board after the acquisition of the medical beauty label company, the company's actual controller Shen Dongri and Shen Hua sibling decided to plan the issue of the issue of non-public offering, which is mainly used for the two business segments of the baby and medical beauty, and does not involve major asset purchases.

In view of the fact that the company has terminated the planning of this major asset reorganization, there are still uncertainties in the timely planning of the relevant issues concerning the issue of non-public offering shares. Upon application, the company's stock has been suspended since June 3, 2016, and the suspension period will not exceed 10 trading days, that is, it will resume trading at the latest by June 21, 2016.