On March 3, Cofoe Medical Technology Co.Ltd(301087) ( Cofoe Medical Technology Co.Ltd(301087) . SZ) announced that Cofoe Medical Technology Co.Ltd(301087) (hereinafter referred to as ” Cofoe Medical Technology Co.Ltd(301087) “) planned to acquire the intellectual property rights related to acorn Trading (Shanghai) Co., Ltd. (hereinafter referred to as “acorn trading”) and “back to back” for 177 million yuan.
According to the announcement, Cofoe Medical Technology Co.Ltd(301087) plans to sign the sale and purchase agreement and the supplementary agreement to the sale and purchase agreement with China DRTV, Inc. (hereinafter referred to as “DRTV”), which holds 100% equity of acorn trade, and purchase 100% equity of acorn trade and intellectual property related to “beibeijia” in its affiliated companies with its own funds of 177 million yuan. After the completion of this transaction, acorn trade will become a wholly-owned subsidiary of the company and be included in the scope of the company’s consolidated statements.
As for the reasons for the acquisition, Cofoe Medical Technology Co.Ltd(301087) pointed out in the announcement that the brand “beibeijia” has a history of more than 20 years, and the main user groups are young people and teenagers. The “beibeijia” products rank first in the posture correction category of tmall Mall for many consecutive years. Jingdong mall is a hot-selling brand in the health category, and is currently the largest brand in the rehabilitation posture segment of tmall mall, Great market potential. In addition, Cofoe Medical Technology Co.Ltd(301087) believes that based on the layout of the company’s online, pharmacies, supermarkets and other channels, the “back back good” series of rehabilitation products will become a new revenue and profit growth point of the company.
According to the official website of acorn trade, “beibeijia” is Acorn International’s own brand. With nearly two decades of TV advertising and marketing, it has become a well-known brand in China. The products of “beibeijia” include classic posture correction equipment. Now a series of new products are launched to solve the problems caused by sedentary office workers.
Cofoe Medical Technology Co.Ltd(301087) official website shows that the company is committed to providing users with lifelong trusted medical and health products and one-stop solutions. Its products cover five fields: health monitoring, rehabilitation aids, respiratory support, medical care and TCM physiotherapy. Its brands include good nurse medical devices and are engaged in all-channel retail management of medical devices; Keyuan medical is a one-stop medical device supply chain platform; Jianer hearing is a national hearing service chain brand focusing on hearing aid fitting service and hearing rehabilitation; There is also oxylide in the field of portable oxygen generators and consumables.
Cofoe Medical Technology Co.Ltd(301087) disclosed the audited main financial data of acorn trade in the announcement. The data showed that the net assets of acorn trade in 2020 were – 74.78 million yuan, which was insolvent; The revenue is 192 million yuan; The net profit was -649976 billion yuan. In the first three quarters of 2021, the net assets of acorn trade became positive, amounting to 120867 million yuan; The revenue is 134 million yuan; The net profit has not been corrected, which is -478954 million yuan.
According to the announcement, according to the simulated profit statement of “beibeijia” posture correction business, the revenue of “beibeijia” in 2020 reached 191 million yuan, accounting for almost 99% of the revenue of acorn trade in the same period; However, the total operating cost of “back to back” is high, reaching 156 million yuan, and the operating profit is 363687 million yuan. In the first three quarters of 2021, the revenue of “Beijia” was 124 million yuan; The total operating cost is up to 111 million yuan, and the operating profit is only 137455 million yuan.
The announcement said that the labor relations of the retained Beijia team personnel confirmed by both parties to the transaction will not be affected. In addition, acorn trade will terminate all external authorizations related to “back and back”, including brand authorization and product authorization, but excluding the authorization of e-commerce platforms, suppliers and manufacturers in normal production and operation activities.
As of March 3, Cofoe Medical Technology Co.Ltd(301087) ( Cofoe Medical Technology Co.Ltd(301087) . SZ) closed up 0.72% to close at 67.57 yuan.
