---
title: "EPS Jianjian Technology: The issue of nuclear wastewater discharge in Japan does not have a significant impact on the sales of Japanese health food by R&E Corporation Limited."
description: "According to the announcement released by EPS Health Technology, it is related to the acquisition of 65% equity of R&E Corporation Limited (the target company) by the group. Starting from late August "
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/97711815.md"
published_at: "2023-09-14T09:17:02.000Z"
---

# EPS Jianjian Technology: The issue of nuclear wastewater discharge in Japan does not have a significant impact on the sales of Japanese health food by R&E Corporation Limited.

> According to the announcement released by EPS Health Technology, it is related to the acquisition of 65% equity of R&E Corporation Limited (the target company) by the group. Starting from late August 2023, Japan will begin to discharge the nuclear-contaminated water stored in the Fukushima nuclear power plant into the Pacific Ocean. Despite the Japanese government's insistence that the discharge is safe, and the conclusion drawn by the International Atomic Energy Agency that the radioactive impact of the treated wastewater can be negligible considering the dilution of radioactive substances, this discharge event still raises public concerns about the safety of Japanese food in Japan. The target group is mainly engaged in the sales of Japanese health food (including) in Japan. The Board of Directors hereby emphasizes that the Japanese health food imported by the target group to China does not belong to the category of seafood or aquatic products, nor does it contain seafood or aquatic products prohibited from import by the Chinese government. Therefore, the discharge issue does not have a significant impact on the sales of Japanese health food by the target group. The Board of Directors hereby emphasizes that the target group's target excess profit for the three fiscal years from April 1, 2023, to March 31, 2026, is an EBITDA (i.e., profit before interest, tax, depreciation, and amortization) of HKD 54 million, or an average of HKD 18 million per year. The cost benchmark of the group is based on the target excess profit of the target group; a multiple of 4.8 times EBITDA; and fair negotiations after the group acquires 65% equity of the target company.

Smart Finance APP News, EPS Creation Technology (03860) announced that it has acquired 65% equity of R&E Corporation Limited (the target company).

Starting in late August 2023, Japan will begin discharging nuclear-contaminated water stored at the Fukushima nuclear power plant into the Pacific Ocean. Despite the Japanese government's insistence that the discharge is safe, and the conclusion reached by the International Atomic Energy Agency that the radioactive impact of the treated water can be considered negligible due to dilution of radioactive materials, this discharge event still raises concerns about food safety in Japan among the public.

The target group is mainly engaged in the sale of Japanese health food (including) in Japan. The Board of Directors hereby emphasizes that the Japanese health food imported by the target group to China does not fall into the category of seafood or aquatic products, nor does it contain seafood or aquatic products prohibited from import by the Chinese government. Therefore, the discharge issue does not have a significant impact on the sale of Japanese health food by the target group. The Board of Directors hereby emphasizes that the target group's target excess profit for the three fiscal years from April 1, 2023, to March 31, 2026, is an EBITDA (i.e., profit before interest, tax, depreciation, and amortization) of HKD 54 million, or an average of HKD 18 million per year. The cost benchmark of the group is based on the target group's target excess profit, a 4.8 times EBITDA multiple, and fair negotiations after the group acquires 65% equity of the target company. Based on the current situation and the performance of the target group since the acquisition, it is expected that this target can be achieved.

The group will continue to closely monitor business performance, strengthen the target group's quality control processes, and ensure that food safety remains our top priority.

### Related Stocks

- [03860.HK - EPS HEALTH TECH](https://longbridge.com/en/quote/03860.HK.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.