Ji'an Medical announced the acquisition plan on the morning of June 28, the company plans to raise funds by non-public offering of no more than 710 million yuan, of which 699 million yuan of net proceeds for the acquisition of Mark Bellerby, Stephen Shennaz, etc. The 17 counterparties collectively hold a 100% stake in eDevice. Based on December 31, 2015 as the benchmark date, the total equity value of eDevice shareholders was assessed by the income method with a result of RMB 948.67 million and a value-added rate of 664.55%.

Ji'an Medical 700 million acquisition of eDevice equity dispute

eDevice is a provider of remote end-to-end connectivity solutions for medical devices/devices, including WireX 3G LC, WireT, Cellgo and HealthGo Mini.

For the acquisition, Liu Yi, chairman of Jiu'an Medical, said in an interview that the listed company is in the same industry as eDevice and has a strong strategic synergy. The two are very strong in customer resources, marketing resources and supply chain resources. Complementary.

Liu Yi also said that eDevice has very good profitability and can alleviate the loss pressure of listed companies. The reporter noted that Jiu'an Medical's 2015 revenue was 398 million yuan, down 6.49% year-on-year; net profit was 151 million yuan; first quarter 2016 revenue was 112 million yuan, up 4.79% year-on-year; net profit was loss of 14.40 million yuan.

If Jiu'an Medical is still unable to turn a profit in 2016, it will be ST as required. Therefore, the importance of this acquisition to listed companies is self-evident.

According to the data, in 2015, eDevice achieved high growth, with revenue of 135 million yuan, a year-on-year increase of 120.11%; net profit of 52.82 million yuan, an increase of 121.38%.

Behind the high growth, the reporter found that eDevice receivables experienced explosive growth in 2015, and R&D investment in the past two years has remained at a low level. Moreover, eDevice, a company that has been in operation for 16 years, has only a large amount of revenue from a single large customer to date, and its customer development ability is worrying.

In response to the above questions, Liu Yi, chairman of Jiu'an Medical, accepted an interview with the reporter and gave a positive response.

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