Gelonghui, January 1, 丨 Xintong Medical-B (02160.HK) announced that on January 1, 2024, Minimally Investing and Shanghai Zuoqing (as the seller), a wholly-owned subsidiary of the company, and Shanghai Zuoxin entered into an equity transfer agreement. According to this, Shanghai Weichuang Xintong conditionally agreed to acquire and Minimally Invest and Shanghai Zuoqing conditionally agreed to sell 51% of Shanghai Jiuxin's shares. The total cost of the acquisition was RMB 141 million. After the acquisition is completed, Shanghai Minimally Innovative Xintong will hold 51% of Shanghai Jiuxin's shares, and Shanghai Jiuxin will become a subsidiary of the company. The cost of the acquisition will be paid from the Group's internal resources, net proceeds from the global offering.

According to reports, Shanghai Zuoxin is a limited liability company established in China on September 10, 2019. As of the announcement date, Minimally Investing and Shanghai Zuoqing held 80.11% and 19.89% of its shares respectively. After the acquisition was completed, Shanghai Wichuang Xintong, Shanghai Zuoqing, and Minimalist Investment held approximately 51.00%, 13.73% and 35.27% of their shares respectively. Shanghai Jiuxin is a high-tech medical device company focusing on medical devices related to the left atrium. Shanghai Jiuxin was recognized as a national technology-based small and medium-sized enterprise by the Shanghai Science and Technology Commission in 2021 and 2022. At present, Shanghai Zuoxin has established a complete production line with a production plant area of 1169.62 square meters, equipped with a full set of relevant production equipment to provide a stable supply guarantee for future production. Its testing laboratory is equipped with advanced testing equipment, which can carry out strict and scientific testing and evaluation of products and products under development. Shanghai Zuoxin's products mainly include the AnchorMan left atrial occlusion device (“AnchorMan left atrial occlusion device”) and the AnchorMan left atrial ear guidance system.

According to the announcement, the acquisition is expected to strengthen the synergy between the company's structural heart disease products and products under development, particularly in terms of R&D, production capacity and distribution channels, thereby strengthening the Group's ability to control costs. The company is a listed company facing increasingly intense competition in the field of valvular heart disease (in the category of structural heart disease). The proposed acquisition provides an opportunity for the company to break into a new market segment with high potential for growth in the structural heart disease sector, thereby diversifying its revenue stream, expanding its strategic plan, and providing a complete treatment plan for structural heart disease to further enhance its competitiveness. The acquisition is also in line with the Group's mission to provide accessible, true, and complete medical solutions for the treatment of structural heart disease. With the anticipated launch of the AnchorMan left ventricular occlusion device in Europe, the company expects to expand its geographical coverage and further strengthen its position in the global market. The proposed acquisition is also expected to improve the efficiency of the company's capital investment.

Furthermore, after careful consideration and detailed evaluation of the company's operations and business strategies, the board of directors has decided to reallocate more net unused proceeds to fund the expansion of our product portfolio through mergers and acquisitions, authorized introductions, or equity investments with global enablers, including medical device companies and research institutes.