On December 5, 2021, Huanya International Medical Technology Group Co., Ltd. (01143. HK) (“Huanya international medical group”), a listed enterprise on the main board of Hong Kong, announced that its wholly-owned subsidiary Huanya Medical Technology Investment Co., Ltd. (“Huanya medical technology investment”) signed a strategic cooperation memorandum with Shanghai Hanxin Jinghong Investment Management Co., Ltd. (“Hanxin Jinghong”), It is proposed to establish a HK $200 million assisted reproductive industry M & A fund to invest in and acquire high-quality projects and assets in the industrial chain. The first batch of funds are proposed to acquire IVF assisted reproductive centers in the United States and Cambodia. From the performance of the assisted reproductive market after the opening of the “three child” policy, if the two sides give full play to their respective industrial and resource advantages in cooperation, it is likely to further accelerate the development of Huanya international medical group in the field of assisted reproductive medical science and technology.
Introduce high-quality industrial projects and gather superior resources of high-end medical treatment
According to the memorandum, Huanya medical technology investment and Hanxin Jinghong plan to jointly establish an assisted reproductive industry M & A fund in the Cayman Islands to invest and acquire high-quality projects and assets of the global assisted reproductive industry chain. The total size of the fund is HK $200 million.
The signed memorandum is valid until June 30, 2022. During the validity period, Huanya medical technology investment has the right to participate in the due diligence of the first batch of reserve projects of the fund in the whole process. After the due diligence process is completed, both parties will sign a formal auxiliary reproductive industry fund agreement. The fund establishment process and arrangements involved shall be subject to the formal fund agreement.
The survey shows that with the relaxation of China’s fertility policy and the increase of global infertility patients, the market of high-end assisted reproductive medical services is huge. According to public data, Huanya international medical group is optimistic about this market space and will focus on leading enterprises with high growth certainty in the high-end assisted reproduction industry chain, including testing reagents, biomedicine, medical devices, internet medical services, assisted reproduction specialist clinics, IVF centers at home and abroad, so as to give full play to the synergy of the industry chain, We are committed to realizing the closed-loop service system of ” Wuxi Online Offline Communication Information Technology Co.Ltd(300959) ” in the field of assisted reproduction. As mentioned above, the assisted reproductive industry M & A fund established by Huanya international medical group and Hanxin Jinghong plans to acquire two IVF assisted reproductive centers in Southern California and Phnom Penh, Cambodia, in the first phase, so as to provide high-quality assisted reproductive medical services for people in need of eugenics and fertility and infertility in China and abroad.
Join forces to share resources and write a new chapter in the field of assisted reproduction
It can be seen from the public information of both sides that Huanya international medical group and Hanxin Jinghong have reached an agreement on the direction of the proposed M & A fund for the auxiliary reproductive industry, mainly because both sides recognize the development prospect of the industry and hope to achieve common development in the field of auxiliary reproductive medical science and technology through complementary advantages and resource sharing.
Headquartered in Hong Kong, China, Huanya international medical group plans to reserve assisted reproductive medical technology through cooperation with leading assisted reproductive medical experts and institutions in the world. At the same time, it will link with medical institutions such as laboratories, clinics and hospitals outside China to provide systematic solutions to customers who need to improve reproductive quality. In the first half of 2021, it has successively signed investment memoranda with Nanjing Jilang biotechnology and nuoyico, established a joint venture with Hanguang Yunke, planned to acquire Edin eugenics and pregnancy assistance, and signed terms and conditions related to possible acquisitions.
Hanxin Jinghong, who signed a strategic cooperation memorandum with a subsidiary of Huanya international medical group this time, is a professional institution registered by China Fund Industry Association and focusing on equity investment. It has successively participated in the initiation and operation of several top equity investment funds in the world in the form of master fund. It has won the top 5 of China’s most active Chinese family fund in the year and the top 30 of market-oriented master Fund issued by China Private Equity Fund Summit for two consecutive years. With more than ten years of experience in China’s capital market, the fund professional team took the lead in rooting the family office concept relay master fund practice in China’s capital market, created the fund investment ecological management system (GP incubator), and filled the gap of China’s market-oriented master fund.
In the period of great strategic opportunity for China’s transformation from a populous country to a powerful country with human capital, with the implementation of the “three child” policy, China’s demand for assisted reproduction is accelerating. Based on the broad market prospect of assisted reproductive industry, relying on the industrial resources of Huanya international medical group in the field of assisted reproductive medicine and Hanxin Jinghong’s rich experience in the field of equity investment fund, the market predicts that once the strategic cooperation is implemented, it will accelerate the development of assisted reproductive business of Huanya international medical group and improve its financial performance, Further enhance the company’s core competitiveness and industry influence.
(Xinhua News Agency)
