(July 19, 2019 – Hong Kong) China Aoyuan Group Limited (“Aoyuan” or the “Company”, Stock Code: 3883) announced today that it will acquire 13.86% of the total shares of Aeon Life Insurance Company Ltd. (“Aeon Life Insurance”), at a total consideration of approximately RMB3.26 billion. The consideration will be funded by Aoyuan’s internal financial resources, and the transaction will only be completed upon approval by China Banking and Insurance Regulatory Commission (“CBIRC”) and when conditions precedent are fulfilled within 180 days after the payment of the consideration.  

 

Aoyuan is committed to proactively innovate and diversify its business model. It has developed into a conglomerate enterprise which covers various business segments, including property development, health and wellness, cultural tourism and cross-border e-commerce. Following the spin-off and separate listing of Aoyuan Healthy Life Group Company Limited (Stock Code: 3662) on the Main Board of the Stock Exchange in March 2019, Aoyuan has enhanced its business strategy of “One Core Business with Vertical Development”. Aoyuan believes that the acquisition of Aeon Life Insurance helps strengthening the Company’s strategy in diversifying its business.

 

Established in 2009, Aeon Life Insurance Company is a national life insurance company approved by the CBIRC. It primarily provides life insurance, health insurance, personal accident insurance and reinsurance. Aeon Life Insurance has been one of the fastest growing company in terms of the compound annual growth rate of premium in PRC life insurance industry. As at the end of 2018, it had total assets of over RMB95 billion with business footprint covering 20 provinces and cities in PRC. It has established its strategic layout with an increasingly sophisticated sales system.

 

Aoyuan management commented, “The investment in a life insurance company provides unique value due to the great development potential and high entry barriers in the PRC life insurance market, as well as stable income streams that the business can generate. Aeon Life Insurance is starting to reap the benefits from its robust growth and it is expected to generate stable and sizeable investment return. On the other hand, Aoyuan’s abundant resources and competitive advantages in the Guangdong-Hong Kong-Macao Greater Bay Area will contribute to the business expansion of Aeon Life Insurance. With the improvement in the PRC economic development and the increasing aging population, the PRC Government has implemented favourable policies in health and wellness industry to satisfy the demand for enhancing quality of life. Considering that the Company’s business in health and wellness is closely tied with insurance services, the acquisition will provide an ideal potential opportunity and platform for Aoyuan to cooperate with Aeon Life Insurance in the health and wellness industry. Hence, the acquisition will allow Aoyuan and Aeon Life Insurance to achieve strategic synergies and complementaries in terms of business development, customer resources, customer experience, etc.. Looking forward, Aoyuan will continue to proactively innovate and diversify its business model. Aoyuan is committed to attaining robust and high-quality growth while strengthening its RMB100 billion sales internationalized platform, thus delivering fruitful returns to its shareholders and investors.”