Shineco Expands Horizons with Latest Medical Device Acquisition
Shineco Expands Horizons with Latest Medical Device Acquisition
The acquisition opens new pathways to enhance existing medical operations.
BEIJING -- Shineco, Inc. (“Shineco” or the “Company”; NASDAQ: SISI), a provider of progressive diagnostic medical products and related devices, has announced an exciting acquisition that is set to create significant synergies with its existing medical device operations. Recently, Shineco Life Science Group Hong Kong Co., Limited, a subsidiary of Shineco, entered into a Stock Purchase Agreement to acquire a 75% stake in FuWang (HK) International Company Limited, a dynamic player in the field of medical devices.
This acquisition is a strategic move for Shineco Life Science as it seeks to bolster its portfolio in the medical sector. The arrangement with Yi Yang, the current sole shareholder of FuWang Company, outlines a deal that includes a payment of approximately US$ 8.8 million in cash and the issuance of 3,400,000 shares of Shineco's common stock. Additionally, the Company will transfer its 71.42% equity interest in Dream Partner Limited as part of the transaction.
FuWang Company is recognized for its research and development, production, and marketing of Class II and III medical devices, including high-tech equipment like biochemical analyzers and mobile medical imaging workstations. This acquisition will not only add valuable intellectual property rights to Shineco's portfolio but also expand its sales network across China, particularly enhancing its presence in provinces like Gansu, Henan, Jiangsu, and Shanxi.
Looking ahead, FuWang Company has ambitious plans for growth. It aims to integrate health management services with emergency response systems, harnessing advanced technologies such as cloud computing and artificial intelligence. This initiative is expected to create a seamless healthcare delivery network that spans from pre-hospital care to in-hospital treatment protocols for critical conditions.
According to the forecasts provided by the Seller, FuWang Company anticipates steady financial growth over the next few years. The expected revenue targets are set at US$ 11.03 million in the first year following the acquisition, escalating to US$ 13.79 million in the second year and reaching US$ 17.24 million by the third year. Similarly, net profit goals are projected at US$ 1.10 million, US$ 1.38 million, and US$ 1.72 million respectively for those years.
Jennifer Zhan, the CEO of Shineco, expressed her enthusiasm about this acquisition, noting, "Acquiring a majority position in FuWang Company is a significant step for us, given its strategic advantages and sales capabilities in the medical device market. The expected synergies from this acquisition will enhance our existing business and strengthen our financial performance significantly."
Shineco is committed to improving health outcomes and enhancing the quality of life through the provision of top-notch health and medical products. To date, Shineco has developed a range of 33 vitro diagnostic reagents and related medical devices, alongside its nutritious food offerings.
For more details regarding this acquisition and its implications for Shineco’s future, please stay tuned as the Company continues to provide updates. The full details of the Stock Purchase Agreement can be found in the filings made with the Securities and Exchange Commission.
Frequently Asked Questions
What is the significance of Shineco's acquisition of FuWang Company?
The acquisition allows Shineco to expand its medical device portfolio and enhances its capabilities in the healthcare sector.
How much did Shineco pay for the acquisition?
Shineco agreed to a total payment of approximately US$ 8.8 million in cash and additional equity considerations.
What types of products does FuWang Company specialize in?
FuWang Company specializes in the research, development, and production of Class II and III medical devices such as biochemical analyzers and patient monitors.
What are FuWang Company’s growth projections?
FuWang anticipates revenues of US$ 11.03 million in the first year, with increases projected in subsequent years.
Who is the CEO of Shineco, and what did she say about the acquisition?
Jennifer Zhan is the CEO of Shineco. She expressed excitement about the acquisition enhancing Shineco's business strategies and financial performance.
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