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On July 25, at the first Hongqiao Qianwan International High-end Pharmaceutical and Medical Device Innovation Industry Forum and the unveiling ceremony of the NICE-WEGO Joint Innovation Center, it was revealed that the WEGO Cloud Innovation Park is scheduled for completion and delivery in the second half of 2024.

WEGO (Shanghai) International Research Institute and WEGO Cloud Innovation Park are important components of WEGO Group's Yangtze River Delta strategic layout.It is an important strategic base for WEGO to move from Weihai to Shanghai and from China to the international market. In the future, it will become the headquarters center of WEGO Yangtze River Delta Shanghai Management, WEGO Capital Group, WEGO Materials Group, WEGO Overseas Division, as well as the R&D centers such as WEGO Orthopedics Group, WEGO Blood Purification Group, and WEGO Research Institute.

Located in the Shanghai Nanqiao Smart Healthcare Innovation Pilot Zone, it broke ground in 2021, covering an area of 61 mu, with a building area of 180,000 square meters, a total investment of 2 billion yuan, and accommodating 3,000 office workers.

At the same time, "NICE-WEGO Joint Innovation Center," "Extraordinary WEGO Medical Device Technology Innovation Center," and "Extraordinary Life Sciences (Hongqiao) International Science and Education Base" were officially established.Aimed at supporting the R&D, application, and transformation of medical device innovation and entrepreneurship projects on the WEGO Cloud Innovation Park platform, and promoting the establishment of a collaborative innovation entity.

Among them, NICE-Weigao Joint Innovation CenterIt is a medical device industry innovation platform jointly built by WEGO Cloud Innovation Park and the Yangtze River Delta National Technology Innovation Center., and will continue to provide a linking channel and value resource allocation between domestic and international medical device innovation institutions, universities, research institutes, and enterprises in the park, empowering technological innovation and achievement transformation.

According to the introduction,The Yangtze River Delta National Innovation Center is a comprehensive national technology innovation center approved by the Ministry of Science and Technology of China, led by Shanghai and jointly established with relevant institutions from Jiangsu, Zhejiang, and Anhui provinces.

According to the official WeChat account of WEGO Cloud Innovation Park, the park is not a traditional office building complex but a forward-looking medical device industry community integrating professional R&D, pilot testing, incubation, commercial, residential, and recreational functions.

The park is not just looking for spatial corporate neighbors, but targets industries such as general surgery, early screening and diagnosis, hematology and metabolism, and health technology, attracting industrial ecosystem partners that synergize and coexist with WEGO.

Not just a single empowerment of the R&D process itself, but a commitment to building a medical-engineering transformation service platform that integrates research, investment, incubation, supply chain acceleration, market acceleration, and other multi-element synergies for the transformation of achievements.

Currently, WEGO Cloud Innovation Park has formed a technology finance strategic service alliance with strategic partners such as China Merchants Bank, Bank of Communications, and Advantage Capital.

A shared R&D service alliance has been formed with strategic partners such as Shanghai Guoyan Medical Device Testing Center, Zhi Zhong Technology, Baoyu Mingzhi, Pure Certify, Ingel Medical Testing, Shunmao Environmental Assessment, etc.; a supply chain acceleration service alliance has been established with partners like the Ferryman Medical Supply Chain Club, etc.

The First Batch of Signed and Incubated Projects

The first batch of signed incubation projects of Weigao Group was jointly signed by the signing representatives Wen Sailan and Zhang Pan, along with four organizations: Yuhua Youchuang (Shanghai) Biotechnology Co., Ltd., Shanghai Medical Engineering WEGO Medical Technology Co., Ltd., WEGO Vision (Shanghai) Medical Technology Co., Ltd., and the Limianxin Precision Immunity Assessment Technology Platform.

Weigao Group Co., Ltd. is a company dedicated to developing its main business in medical devices and pharmaceuticals. It has 13 industrial groups and more than 100 subsidiaries, including 3 listed companies and 8 overseas companies, with manufacturing bases established in 10 provinces and municipalities in China.

On April 13, 2024, the founding conference of WEGO Yangtze River Delta Group was held in Shanghai. According to the group,The establishment of WEGO Yangtze River Delta Group is a landmark achievement in implementing the "Three Transformations" development strategy. It represents an excellent practice in comprehensively advancing internationalization and creating a second growth curve, signifying that WEGO's "second entrepreneurship" process has taken a substantive and crucial step forward.

WEGO Yangtze River Delta Group will adopt the "1+2+3+6" operation mode,That is to build a WEGO Cloud Innovation Park platform, establish two centers for talent and innovation, and develop three major sectors—overseas business, health and wellness, and empowerment—along with six industrial groups.This new model aims to promote WEGO's goal of achieving a second growth curve through the coordinated development of diversified businesses, and is committed to establishing an intensive and digital new platform governance model, paving new paths for the continuous development of Weigao Group.

In March 2021, at the groundbreaking ceremony of WEGO International Research Institute, Zhao Wentao, the office director of Shanghai WEGO Shengji Medical Technology Co., Ltd., stated: "The company chose Hongqiao for its location due to its superior geographical position. With Hongqiao Airport and Hongqiao High-Speed Railway Station nearby, it is convenient to travel anywhere. Moreover, it is relatively close to the Weihai headquarters, making it easier to receive support from the headquarters."At the same time, this is also the place closest to the world. WEGO needs a foothold to establish closer ties with overseas markets.”

Transformation in Progress

Against the backdrop of policies such as bulk procurement and medical insurance catalog negotiations leading to a downward trend in drug prices, WEGO Group's performance has also been affected.

Financial data shows,In 2023, WEGO Orthopedics achieved revenue of approximately 1.284 billion yuan, a year-on-year decrease of 37.63%; the corresponding attributable net profit was approximately 112 million yuan, a year-on-year decrease of 81.3%. In the first quarter of this year, WEGO Orthopedics achieved revenue of approximately 348 million yuan, a year-on-year decrease of 10.74%; the corresponding attributable net profit was approximately 35 million yuan, a year-on-year decrease of 62.92%.

The reason for the decline in performance, WEGO Orthopedics explained in its earnings report, is that the implementation of China's high-value orthopedic consumables volume-based procurement policy has led to a decrease in product ex-factory prices and price concessions on channel inventory replenishment. This has resulted in a reduction in product sales revenue and gross margin, thereby leading to a decrease in the company's related profit indicators.

WEGO Blood Purification Company, which is applying for an IPO, saw a project update disclosed by the Shanghai Stock Exchange on June 25. Shandong WEGO Blood Purification Products Co., Ltd. has updated and submitted relevant financial documents, indicating that the review process for WEGO Blood Purification has resumed.

According to the annual report of WEGO,In 2023, WEGO Blood Purification's revenue reached 3.532 billion yuan, representing a year-on-year increase of 2.36%; net profit was 326 million yuan, with a year-on-year growth of 3.00%. The performance growth rate has decreased compared to the previous two years.

As mentioned in the IPO prospectus of WEGO Blood Purification, after the implementation of volume-based procurement, there is some uncertainty regarding the inclusion of the company's related products in hospitals, and the hospital entry prices face certain downward pressure, which may subsequently affect the ex-factory prices of the company’s products.

At the 2024 Annual Work Mobilization Conference of WEGO Holdings, Chen Lin, Chairman of WEGO Group, stated that the company will always adhere to the factory-establishment principle of "pioneering innovation and pragmatic consolidation." Guided by the important ideology of "one center, three adjustments," and with the strategic development concept of "three transformations" as the guiding principle, the company will address new market challenges and development opportunities through innovation and transformation.

He emphasized,The transformation of industrial concepts is at the core; enterprises must focus on their main business, strictly review and adjust side businesses to maintain competitiveness.

So, will WEGO successfully meet the challenges in the future? What key strategies will it focus on? Instrument Family will continue to follow up.

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