News Release: AEON DELIGHT CO., LTD.

(9787 TSE1)
October 25, 2021

Notice of Change in Sub-subsidiary by Overseas Subsidiary(Equity Purchase and Capital Increase Subscription)
At today’s Board of Directors meeting, AEON delight resolved that our consolidated subsidiary AEON
delight (China) Co., Ltd. (hereinafter “AD China”) will acquire a 51 percent equity stake in Zhejiang
Metelan Property Management Co., Ltd. (hereinafter “Metelan”) through equity purchase and capitalincrease subscription (hereinafter the "Investment").

１．Reason for the changeThis Investment aims to expand the Group’s medical facility-related operations in our China businessand boost growth by making a sub-subsidiary of Metelan, which possesses extensive businessexperience, a proven record, and a high level of expertise in the management of medical facilities.
２．Method of transfer
AD China will acquire a 51 percent equity stake in Metelan through a combination of equity purchaseand capital increase subscription.
３．Outline of the subsidiary making the Investment（１） Trade NameAEON DELIGHT (CHINA) CO., LTD.
（２）

Representative

Chairperson Yasuo Miyake（３）

Headquarters

Room 1003A, Building 1，Jinghope Plaza，No.88 Huachi
Street，Industrial Park, Suzhou, Jiangsu（４）FoundedNovember 2007

（５）

Business Description

Management and support of Group companies in China（６）

Capital

CNY 143 million (approx. JPY 2,157 million)（７）

Fiscal Year-end

December（８）

Stakeholders & Equity Share

AEON DELIGHT CO., LTD. 100%1

４． Overview of the sub-subsidiary to be transferred（１） Trade Name
Zhejiang Metelan Property Management Co., Ltd.
（２） Representative
General Manager Xu Zengwei（３） Headquarters
Room 1208, Building 1, Hangzhou East International Business Center,Hangzhou Economic and Technological Development Zone
（４） Founded
December 15, 2010
（５） Business
Cleaning, in-hospital transport, security, facility management, patient
Description
attendance, etc. at medical facilities（６） Capital
CNY 10.05 million (approx. JPY 173 million) ※１
Stakeholders &（７） Equity Share
Xu Zengwei 93.9%, shareholding association 6.1％
before Change
CapitalNot applicableNot applicable
Relationship with Personnel（８）
AEON DELIGHT BusinessNot applicable
Relevant Status with Related Parties
Not applicable
Stakeholders &AD China 51%, Xu Zengwei 44%,（９） Equity Share
Executive shareholding association 5%
after Change（10）Operating Results and Financial Position for the Past Three Years (million yen)
FY ended
FY ended
FY ended
Fiscal Year
Dec.31, 2018
Dec.31, 2019
Dec.31, 2020
Net Assets
61384Total Assets
9893140
Net Sales
273353716
Operating Income△11△21△35Ordinary Income△10△20△34Net Income△10△20△34Exchange Rate ※２
1 CNY＝16.14 JPY
1 CNY＝15.68 JPY
1 CNY＝15.89 JPY※１ After the Investment, the company plans to increase capital to CNY 12,283,000 (approx.
JPY 212 million).
The exchange rate used to convert Chinese Yuan to Japanese Yen in this document is 1
CNY = 17.29 JPY (as of September 30, 2021).
※２ The exchange rate is the fiscal year-end rate based on Mizuho Bank’s posted rate.
５．Overview of the other party in the equity purchase（１） Name
Xu Zengwei（２）

Location

Liantang New District, Hangzhou, Zhejiang（３）

Relationship with
AEON DELIGHT

CapitalNot applicable

Personnel

Not applicable

Business

Not applicable

Other special notes

Not applicable2

６． Investment value and equity share before/after the Investment
CategoryInvestment Value

Equity Share（１）

Before Investment

AD China 0％（２）

Acquisition value（３）―
CNY 28,050,000 (approx. JPY 484 million)
Breakdown:・Capital increase subscription
CNY 10 million (approx. JPY 172 million)
・Equity purchase
CNY 18.05 million (approx. JPY 312 million)

After Investment―

７．Schedule
Date of BOD Resolution

October 25, 2021

Date of Contract Conclusion

November 2021 (planned)

Date of Investment Completion

December 2021 – February 2022 (planned)―

AD China 51%

８．Future outlook
This Investment is subject to the acquisition of permits and approvals from relevant authorities.
The sub-subsidiary change resulting from this Investment will have minimal impact on consolidated
business results.
We will promptly disclose matters related to the acquisition of permits and approvals, along withany other important matters that impact our business outlook and should be disclosed.

3