Shanghai Electric | Participate in Establishing Medical Device Merger Fund

Pharmaceutical Network June 26th, due to the slowdown in its main business growth, Shanghai Electric will turn its sights to the medical equipment industry with promising prospects. On June 21, Zhejiang Lianchuang Yongsheng Equity Investment Partnership Establishment Conference was held in Zhuji. Shanghai Electric Yongxuan Medical Devices Merger and Acquisition Fund was officially established. The fund was jointly initiated by Shanghai Electric with its own capital of 200 million yuan and Shanghai Lianchuang Yongsheng Equity Investment Management Co., Ltd. (abbreviated as Shanghai Lianchuang Yongxun). 1.6 billion yuan.

'Shanghai Electric hopes to nurture new growth points through fund acquisitions, tactically evade merger and acquisition risks, and strategically maintain the direction of the entire manufacturing industry.' Vice Chairman of the Shanghai Electric Finance Group, Qin Hao, recently received a report from the Shanghai Daily During the interview, Shanghai Electric was established medical instruments The M&A Fund aims to seek out, reserve and develop high-quality project resources through professional management agencies, and complete the strategic layout of the company in the field of medical devices.

It is reported that the M&A fund has focused its investment on the medical device industry, with particular focus on medical robotics, medical information, large-scale diagnostic and therapeutic equipment, and other areas of investment to invest in high-growth equipment and services. enterprise The subject company must be the leading enterprise in the segmentation industry, possess core independent intellectual property rights, and the compound growth rate is higher than the industry average growth rate, ie more than 20%.

With the gradual improvement of graded medical treatment policies, the demand for medical equipment by primary medical institutions will provide huge room for growth. M&A funds hope to use Shanghai Electric's rich experience in manufacturing, management and sales to find high growth. Sexual enterprises are nurtured and truly serve the real economy.

In recent years, the M&A market in the medical device industry has continued to be hot. According to the statistics of the arterial network, in 2017, there were 84 financing events (including 8 IPOs) in the medical device industry with a cumulative amount of approximately RMB 10 billion. Among them, in vitro diagnostics, intelligent hardware, The four major segments of minimally invasive medical devices and medical imaging devices perform most prominently. The capital flows mainly to in vitro diagnostics, radiation therapy, medical imaging, ultrasound equipment, and medical robots.

Shanghai Electric's main business is to provide all kinds of power generation equipment and elevators, electrical equipment and services, etc. According to Shanghai Electric's 2017 annual report, the company achieved operating revenue of 79.544 billion yuan in 2017, achieving a net profit of 2.66 billion yuan, but in the company In the four main business segments, except for a slight rise in the industrial equipment segment (elevators, etc.), the revenues of the other three business segments all declined in the past year. Last year, the company’s new orders also fell by 17.8 points compared to the same period in 2016. %.