Haili Biology Plans to Establish a Secondary Subsidiary to Unify the Management of 7 Jinboli Dental Clinics in Yangzhou and Changzhou

Image source: Announcement by Haili Biological on the proposed external investment to establish a secondary subsidiary and acquire equity in seven dental chain companies in Yangzhou and Changzhou.

DentalGoodNews｜April 15, 2026 - Shanghai Haili Biology Technology Co., Ltd. (Stock Code: 603718, hereinafter referred to as "Haili Biology") announced its plan to establish a second-tier subsidiary, Jiangsu Haili Oral Medical Management Co., Ltd. (provisional name, hereinafter referred to as "Haili Oral"), through its controlling subsidiary Shaanxi Ruisheng Biology Technology Co., Ltd. (hereinafter referred to as "Ruisheng Biology"). With a registered capital of 15 million RMB, this new entity will serve as a unified management platform for seven "Jinboli" brand dental chain clinics located in Yangzhou and Changzhou.

According to the announcement, Haili Biology's controlling subsidiary, Ruisheng Biology, primarily operates in the field of dental restoration materials. The proposed equity structure for Haili Oral is as follows: Ruisheng Biology holds 51%, Zou Chunyang holds 44%, and Xie Shouliang holds 5%. Its registered address is in Wujin District, Changzhou City, Jiangsu Province.

The announcement states that upon completion of the establishment and relevant industrial and commercial transfer procedures, Haili Oral will acquire 100% of the equity in the seven dental chain companies, currently held by Ruisheng Biology, Zou Chunyang, and Xie Shouliang. After the transfer, Haili Oral will directly hold all equity in the seven companies. Ruisheng Biology, Zou Chunyang, and Xie Shouliang will then indirectly hold 51%, 44%, and 5% equity in the seven companies respectively through their ownership in Haili Oral. All seven chains operate under the "Jinboli" brand and are located in Yangzhou City (including Yizheng) and Changzhou City (including Liyang), comprising 1 dental hospital and 6 dental clinics.

*Image source: "Announcement by Haili Biological on the Acquisition of Equity in Seven Dental Chain Companies in Yangzhou and Changzhou by Its Controlling Subsidiary"

According to a previous report by DGN, in January 2026, Ruisheng Biology acquired a 51% stake in each of the aforementioned seven companies using its own funds of 61.2 million RMB. This acquisition was projected to increase revenue by approximately 100 million RMB and net profit by over 7 million RMB in 2026. The establishment of Haili Oral aims to consolidate the equity previously dispersed among Ruisheng Biology, Zou Chunyang, and Xie Shouliang under a single management entity. This move is intended to strengthen unified control over the dental chain business and enhance operational efficiency.

Haili Biology stated in the announcement that this transaction has been reviewed and approved by the 19th meeting of the company's Fifth Board of Directors and does not require submission to the shareholders' meeting for deliberation. It does not constitute a connected transaction or a major asset reorganization as defined by the "Administrative Measures for Major Asset Reorganization of Listed Companies." Furthermore, the company noted that this investment does not involve additional capital expenditure and will not adversely affect the company's financial or operational status.

The company also cautioned in the announcement that the industrial and commercial registration changes for Ruisheng Biology's acquisition of the seven dental chain companies have not yet been fully completed. Additionally, the industrial and commercial registration for Haili Oral has not been processed. There is uncertainty regarding the final successful completion of the relevant asset delivery and transfer procedures.