Cofoe Medical Technology Co.Ltd(301087) ( Cofoe Medical Technology Co.Ltd(301087) ) announced on March 3 that the company plans to sign the sale and purchase agreement and the supplementary agreement to the sale and purchase agreement with DRTV, which holds 100% equity of acorn trade, and purchase 100% equity of acorn trade and intellectual property related to “back and back” in its affiliated companies with its own capital 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.
Up to now, DRTV has integrated the stores related to “beibeijia” business in its affiliated companies, and stripped off the main assets and liabilities not related to “beibeijia” business in acorn trade.
further improve the structure of rehabilitation products
The brand “beibeijia” has a history of more than 20 years, and its main user groups are young people and teenagers. The “beibeijia” products rank first in the corrective posture category of tmall Mall for many consecutive years, and are the best-selling brand in the health category of JD mall. At present, it is the brand with the largest sales scale in the rehabilitation corrective posture segment of tmall mall, with great market potential.
Cofoe Medical Technology Co.Ltd(301087) existing product categories include a number of medical rehabilitation products such as neck and waist rehabilitation, leg orthopedics and physiotherapy massage. The acquisition of “back and back good” back posture products will further improve the structure of rehabilitation products.
Cofoe Medical Technology Co.Ltd(301087) plans to take “beibeijia” as a sub brand of rehabilitation accessories, cooperate with professional medical institutions to carry out professional clinical academic research and product upgrading and development of physical posture correction and shaping products, and combine the company’s deep R & D accumulation in the field of multi parameter health monitoring to create posture correction, shaping Physiotherapy and wearable medical monitoring products. At present, the company is working with the Second Xiangya Hospital of Central South University to carry out the research on the “application research and development project of pressure sensing intelligent chest and back correction equipment based on machine learning”. The company will upgrade the “back and back good” correction products based on medical research.
Cofoe Medical Technology Co.Ltd(301087) said that at present, all “back to back” products are sold online through tmall, jd.com and other platforms, which highly coincides with the company’s existing sales channels. Based on the company’s rich experience and comprehensive operation ability in the field of Internet sales, as well as the extensive layout of offline pharmacies, supermarkets and other channels, “Beibeijia” series rehabilitation products will become a new revenue and profit growth point of the company.
Lalian acquired
It is worth mentioning that Cofoe Medical Technology Co.Ltd(301087) announced on November 7, 2021 that the company plans to acquire 540539% equity of giri medical, with a transaction price of about 50.27 million yuan; It is proposed to acquire all businesses such as “beibeijia” brand and intellectual property rights by acquiring 100% equity of acorn trade, with a transaction price of 177 million yuan.
Jirui medical is a high-tech enterprise specializing in the research and development, production and sales of intelligent rehabilitation aids such as electric wheelchairs, manual wheelchairs and elderly scooters. At present, Jirui medical has 6 invention patents, 51 utility model patents and 30 appearance patents. It has 70 models of electric wheelchairs and 20 models of manual wheelchairs with medical device registration certificates. It has a complete intellectual property system and leading technology R & D capability.
among Cofoe Medical Technology Co.Ltd(301087) rehabilitation accessories, wheelchair products account for the largest proportion of single products, which are mainly purchased from private brands. Giri medical is one of the main suppliers of rehabilitation products of the company. Through the acquisition of giri medical, Cofoe Medical Technology Co.Ltd(301087) will fill the vacancy in the independent R & D and production capacity of wheelchairs, mobility aids and other products.
According to the announcement of Cofoe Medical Technology Co.Ltd(301087) 2021 on December 8, the company has signed the equity transfer agreement with the trading parties and paid the first equity transfer payment. Jirui medical has recently completed the relevant industrial and commercial change registration procedures and received the business license renewed by Shanghai Jiading District market supervision administration.
In addition, Cofoe Medical Technology Co.Ltd(301087) also announced on February 23 that Jianer hearing, a wholly-owned subsidiary of the company, acquired 80% equity of Chengdu Yier jointly held by Ma Feiyue and Li Yan with its own capital of 17.44 million yuan. After the completion of the transaction, Chengdu Yier will become a holding subsidiary of the company and be included in the scope of the company’s consolidated statements.
Chengdu Yier has been deeply engaged in the field of hearing aid fitting for more than ten years. Based on Sichuan Province, it has set up 32 hearing aid fitting centers in prefecture level cities such as Zigong, Neijiang, Luzhou and Ya’an. The stores have excellent quality, advanced fitting equipment, professional fitting team and good market reputation.
Hearing business is a strategic business supported by Cofoe Medical Technology Co.Ltd(301087) key Cofoe Medical Technology Co.Ltd(301087) said that the acquisition will accelerate the expansion of Jianer hearing in Sichuan Province and further improve the layout of Jianer hearing in Sichuan Province on this basis. The hearing aid fitting center acquired this time has certain profitability and will have a positive impact on the company’s future operating performance.
frequency acquisition organization research
Recently, Cofoe Medical Technology Co.Ltd(301087) successively disclosed the record of investor relations activities on January 8, January 14, January 22, January 29 and February 26. It can be seen that Cofoe Medical Technology Co.Ltd(301087) has attracted the attention of institutional investors, and the company’s acquisition of 540539% equity of giri medical and 100% equity of acorn trade is also the focus of institutional investors.
For example, the record of investor relations activities disclosed on January 22 of Cofoe Medical Technology Co.Ltd(301087) shows that from January 17, 2022 to January 21, 2022, a number of institutional investors including Haitong Securities Company Limited(600837) , Celestica fund, Dacheng Fund and China Europe Fund participated in the teleconference of Cofoe Medical Technology Co.Ltd(301087) .
During the period, the progress of the company’s acquisition of back-to-back business integration, the reasons for the increase of back-to-back sales expenses and the reasons for the low gross profit margin of giri medical have become the focus of institutional investors.
In this regard, Cofoe Medical Technology Co.Ltd(301087) replied that on the one hand, the company is promoting the asset reorganization, audit and evaluation of the acquisition target according to the terms and agreements signed in the early stage; On the other hand, the business teams of both sides are closely connected to carry out the handover of online stores. In addition, the company has established a joint scientific and technological innovation center with the Second Xiangya Hospital of Central South University to start the application research and development project of pressure sensing intelligent chest and back correction devices based on machine learning, continuously optimize the intelligent adjustment chest and back correction devices through clinical evaluation, and reshape the brand definition.
The main reason for the increase of back to back sales expenses is that the back to back operation team increased its attempts to use new sales strategies and used some new drainage and promotion tools in the first half of 2021. The proportion of promotion expenses such as through train and pinxiaobao increased. In the second half of the year, the operation team adjusted the marketing strategy and the cost rate gradually returned to the normal level. The company’s Internet sales channels are highly overlapped with its back-to-back sales channels. Based on the company’s strong e-commerce operation ability, by optimizing marketing strategy and improving pre-sales and after-sales service level and warehouse management ability, the company can greatly reduce operation costs, warehousing and logistics costs and improve profitability. At the same time, based on the company’s perfect sales system, we can quickly introduce the business of beibeijia into offline channels and sell through national pharmacy customers and supermarkets, so as to make up for the gap of the current offline channels and increase the offline sales revenue.
In addition, Cofoe Medical Technology Co.Ltd(301087) also said that compared with other categories of products, the gross profit rate of rehabilitation products is lower than that of other categories. At the same time, the relocation of girui medical production base from Shanghai to Nantong in 2021 resulted in the increase of some production costs and the increase of unit labor cost in the short term.
