Water Sheep Shares (300740.SZ) to acquire cosmetics brand EviDenS de Beauté is expected to cost 49.5 million euros

Water Sheep (300740.SZ) announced that HONG KONG YU JIA INTERNATIONAL TECHNOLOGY COMPANY LIMITED and JYJH LIMITED, a wholly-owned subsidiary of the company, intend to purchase 90.05% of the equity of EviDenS de Beauté SAS held by Kazokou SAS and Orsay 53 SAS for 44.5 million euros , and purchased the creditor’s rights formed by the dividends declared but not paid by the target company held by the original shareholders at a par value of 5 million euros at the beginning of the year. The total transaction amount of this transaction is 49.5 million euros. After the completion of this transaction, the target company will be included in the scope of the company’s consolidated financial statements.

The target company owns the cosmetics brand EviDenS de Beauté. The brand was founded in 2007. It is a high-end skin care brand that combines Japanese and French skin beautifying techniques. It is an anti-aging brand specially developed for sensitive skin. Masks and other daily skin care products; EviDenS de Beaut é has been deployed in many countries or regions around the world, and its sales areas include the United States, France, the United Kingdom, Japan, South Korea, Thailand and more than 30 cooperative countries or regions, and have settled in Galeries Lafayette in Paris, Rosewood Hotel, Tsum (Moscow Central Department Store), King Power (Thailand King Power), Harrods (UK Harrods Department Store), SKP in China, and many top markets in the world, with global terminal retail sales exceeding 500 million yuan.

After the acquisition is completed, the target company will be included in the scope of the company’s consolidated statements. The founder of the target company still holds a minority of shares and plans to continue to serve as the legal representative of the target company. The original team of the target company will continue to be retained, and the target company will continue to operate independently after the acquisition. This transaction is in line with the company’s overall strategy and is of great significance for enriching the company’s brand matrix and product system. The transfer price of the target equity is 44.5 million euros, which is expected to form a large amount of goodwill, and there is a risk of goodwill impairment.