Winner Medical Co.Ltd(300888) ( Winner Medical Co.Ltd(300888) ) announced on April 10 that in order to further enrich the company's product line and expand business channels outside China, it is planned to use its own capital of 728 million yuan to acquire 55% equity of Longtai medical.
The reporter of securities times · e company found that this M & A is the first extension expansion of Winner Medical Co.Ltd(300888) since it landed on the gem in 2020.
Winner Medical Co.Ltd(300888) said that the acquisition is highly consistent with Winner Medical Co.Ltd(300888) 's strategy of building a leader in the high-end wound dressing industry, and forms scale and synergy with the advantages of both sides in customers, markets, products, R & D and production.
The announcement revealed that Longtai medical's main business is research and development, production and sales of high-end wound dressing (including silicone foam, hydrocolloid, silicone gel, hydrogel, film applicator and stoma). The target companies of this transaction are Longtai medical, its wholly-owned subsidiary Xi'an longtem, and Longtai silica gel and Shengyi technology, which were changed to the wholly-owned subsidiary of Longtai medical before the closing of this transaction according to the restructuring plan. Longtai medical, Xi'an longtem and Longtai silica gel are mainly engaged in high-end wound dressing business.
Statistics show that Longtai medical was founded in 2012. At present, it mainly focuses on export. It has established a relatively perfect sales system and channel network in the international market. Its products are sold to many countries and regions such as America and Europe, and has established stable cooperative relations with many international well-known medical device brands.
At the same time, Longtai medical also actively expands the Chinese market, which is divided into its own brand innomed sales and Chinese OEM production. In 2021, Longtai medical sales revenue exceeded 350 million yuan, including silicone gel foam dressing and other high-end wound dressing and stoma products to achieve sales revenue of over 280 million yuan, and is in the leading position in China's high-end wound dressing enterprises.
From the disclosed financial indicators of Longtai medical, excluding the revenue of unconventional products, i.e. epidemic prevention products, of 130 million yuan and 5 million yuan in 2020 and 2021 respectively, the operating revenue of Longtai medical in 2021 increased by nearly 30% year-on-year compared with that in 2020.
From the perspective of the acquirer and the target, they can be called "veterans" of the track. Longtai medical has been established for 10 years, while Winner Medical Co.Ltd(300888) has a history of 31 years. It has ranked among the top three in the export of medical dressings in China for many years, covering more than 110 countries. Both sides are the first batch of Companies in China to develop, produce and export high-end wound dressings. Through the coordination of sales and product R & D, in order to obtain greater market share, it has become an important direction of this operation.
From the perspective of meso industry, some institutional research reports show that the scale of the global high-end wound dressing market will reach US $5.846 billion in 2020 and is expected to reach US $7.23 billion in 2027. It is expected that China's export market of high-end wound dressing will maintain healthy growth and tend to be concentrated.
The Chinese hospital high-end wound dressing market is still in the initial stage of rapid growth, mainly overseas brands. With the more comprehensive coverage of medical insurance, the deeper understanding of products by doctors and nurses, and the upgrading of patients' requirements for treatment effect, Chinese manufacturers have the advantage of production cost, and are expected to have greater market growth potential and import substitution space.
According to the announcement, Longtai medical has more than 600 hospital customers, while Winner Medical Co.Ltd(300888) covers more than 4000 hospitals. In addition to Winner Medical Co.Ltd(300888) existing wound care, operating room consumables, disease control and protection products and disinfection and cleaning products, the two sides work together to build a comprehensive one-stop service and strive to become the preferred brand of Chinese hospitals.
Winner Medical Co.Ltd(300888) said in the announcement that it would constantly adjust policies according to market changes and business requirements to ensure effective coordination with Longtai medical.
How to ensure effective collaboration?
From the data, the respective characteristics of the two companies have become one of the fulcrums of force coordination. Wu Kangping, founder of Longtai medical, has more than 20 years of clinical experience. In addition to designing and innovating a large number of high-end wound dressings and other products, he also develops a complete set of solutions for household stoma, wound care, skin management and so on Winner Medical Co.Ltd(300888) has two well-known brands " Winner Medical Co.Ltd(300888) " and "all cotton era", of which Winner Medical Co.Ltd(300888) covers more than 120000 pharmacies, has more than 9 million online fans, and more than 330 offline stores in all cotton era, covering more than 60 cities. With tmall, JD and other online channels, all cotton era has more than 35 million members.
