Yingtai Medical (01501. HK) recently announced that the company has signed a letter of intent to acquire its target company Hangzhou Weiqiang Medical Technology Co., Ltd. and its affiliated group companies on December 18, 2024. According to the terms of the agreement, Yingtai Medical plans to acquire at least 51% of the controlling stake in Weiqiang Medical through capital increase, share expansion, and acquisition of shares from some shareholders. This transaction also stipulates that Yingtai Medical will inject no less than RMB 200 million in new funds into Weiqiang Medical after the acquisition is completed, and must pay a prepayment of RMB 30 million after the agreement takes effect.

Weiqiang Medical has attracted much attention for its outstanding product development and clinical integration capabilities. In its product line, it includes Professor Guo Wei's WeFlow Branch split type thoracic aortic stent graft from 301 Hospital, and Professor Fu Weiguo's Fabulous stent graft from Zhongshan Hospital ® Bracket and Professor Zhang Wei's ZIPPER ™ The integrated aortic arch covered stent system embodies the essence of medical engineering integration and is widely recognized in clinical practice. These excellent products not only attracted the attention of many investors, but also sparked the acquisition interest of international giant Medtronic. However, in the end, Yingtai Medical successfully stood out and completed the acquisition of Weiqiang's controlling stake.

For Yingtai Medical, this acquisition marks its strategic transformation from a business structure primarily focused on interventional accessory products to one that encompasses higher value medical product lines. Yingtai Medical originally started with traditional low value consumables such as pressure pumps, contrast catheters, Y-valves, contrast wires, and catheter sheaths. By acquiring Weiqiang Medical, it will further enhance its competitiveness in the high-end medical device market. In the current capital winter of the medical industry, financing difficulties have increased, and cash flow has become the key to the survival of enterprises. After experiencing a series of capital changes, Weiqiang Medical chose to sell a portion of its equity to obtain financial support. As a transformer of the former Shanghai Kangdelai Medical Equipment Co., Ltd., Yingtai Medical has successfully entered the Hong Kong stock market after years of development and achieved stable profit growth. The acquisition of Weiqiang Medical will not only bring it additional revenue growth points, but also contribute to its plan to return to the A-share market in the future.

Source: http://qixieke.com/Font/index/detailPage.html?id=3301-142