*ST HILE: HILE Dental has been established, and the equity transfer of seven dental companies in Yangzhou and Changzhou has been completed.

Source: Announcement by HILE on the Progress of Its Controlling Subsidiary's Acquisition of Equity in a Dental Chain Company

DentalGoodNews｜On May 21, 2026, SHANGHAI HILE BIO-TECHNOLOGY CO., LTD. (Stock Code: 603718, hereinafter referred to as "HILE") issued an announcement disclosing the latest progress on the External Investment to establish a second-tier subsidiary and the transfer of equity. The announcement stated that the company's second-tier subsidiary, Jiangsu HILE Dental Management Co., Ltd. (hereinafter referred to as "HILE Dental"), had officially completed the industrial and commercial registration procedures and obtained its business license on May 20, 2026.

HILE Dental has a registered capital of 15 million yuan and is registered in Changzhou City, Jiangsu Province. Its equity structure consists of three parties: ST HILE's controlled subsidiary Shaanxi Ruisheng Biology Technology Co., Ltd. (hereinafter referred to as "Ruisheng Biology") holds 51%, natural person Zou Chunyang holds 44%, and Xie Shouliang holds 5%. As a controlled subsidiary of Ruisheng Biology, HILE Dental becomes a second-tier subsidiary of ST HILE.

According to previous reports by DENTALGOODNEWS (Leading Dental Industry Media, DGN), HILE approved a resolution in April this year to establish this subsidiary and acquire the equity of seven dental chain companies in Yangzhou and Changzhou. At that time, it was estimated that this integration would increase the company's revenue by approximately 100 million yuan and net profit by over 7 million yuan in 2026.

As of now, HILE Dental has been established, and the announcement clarifies that the industrial and commercial registration procedures for the equity transfer of seven dental chain companies in Yangzhou and Changzhou, including Yangzhou Jinboli Dental Hospital Co., Ltd., Yangzhou Jinboli Dental Clinic Co., Ltd., and Changzhou Wujin Jinboli Dental Clinic Co., Ltd., have all been completed. As agreed, HILE Dental will subsequently acquire 100% of the equity in the above seven institutions held collectively by Ruisheng Biology, Zou Chunyang, and Xie Shouliang.

HILE is currently under a Delisting risk warning (ST) status, having incurred a Net Profit Attributable to Shareholders of the Parent Company loss of 311 million yuan in 2025 due to Goodwill Impairment. According to the "ST HILE 2025 Annual Shareholders' Meeting Materials," the company plans to integrate Jinboli Dental and its second-tier subsidiaries to build an integrated marketing platform for the domestic Oral implantology sector, enhance terminal market share, and seize opportunities from domestic substitution and VBP to drive business development. Additionally, the company will continue to strengthen the management and control of Jinboli Dental to ensure the compliance of the integration work and the fulfillment of the Performance commitment.

It should be noted that HILE reminded in the announcement that there remains uncertainty risk regarding the smooth completion of the relevant transfer and subsequent integration work, and the company will continue to fulfill its disclosure obligations.