Gelonghui November 23丨Kunbo Medical-B (02216.HK) announced that on November 23, 2023, Kunbo Hangzhou (as the buyer), a wholly-owned subsidiary of the company, signed an equity transfer agreement with the seller (each and collectively known as Quantum Engineering, Suzhou Patience, and Hangzhou Denuo) to acquire 100% of the shares of the target company Hangzhou Precision Science and Technology Co., Ltd. at a total cost of RMB 5.4 million.
The target company is a company focusing on the production and processing of medical devices and software/hardware development, with innovative production and intelligent manufacturing business capabilities. With the company's core technical advantages in transbronchial flexible surgery robots (i) flexible catheter products and (ii) optical navigation, software and algorithm development, we believe the acquisition will supplement the Group with related technologies such as robot control and drive system platform development, so that the Group can take advantage of the complementary advantages of resource integration and further strengthen the innovative strength of respiratory intervention products it currently provides.
Furthermore, it is expected that the acquisition will enhance the company's R&D capabilities and efficiency (especially the flexible robot project), coordinate with the company's existing interventional methods of pulmonary disease, enrich the Group's existing products, and further build a full-life cycle respiratory interventional diagnosis and treatment platform.
According to the above benchmarks, the board of directors believes that integrating the target company's business with the Group's business will bring great synergy, so the acquisition is in line with the company's overall business strategy as disclosed in the prospectus. Furthermore, the board of directors believes that there have been no major changes in the Company's business strategy as described in the prospectus, and that according to Section 18A.10 of the Listing Rules, the acquisition will not cause fundamental changes in the Company's main business activities.
Upon completion, the target company will become a wholly-owned subsidiary of the company, and its financial results will be integrated into the group's financial results.