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Recently, WEGO Group announced that the establishment conference of WEGO Yangtze River Delta Group, themed "Gathering Strength and Intelligence to Create the Future," was successfully held in Shanghai on April 13.

It is reported that WEGO Yangtze River Delta Group will adopt the "1+2+3+6" operation model, including establishing the WEGO Cloud Innovation Park platform, setting up two centers for talent and innovation, and developing three major sectors—overseas business, healthcare business, and empowerment business—as well as six industrial groups.By promoting the coordinated development of diversified businesses, WEGO Group opens up new paths for sustainable growth and builds an intensive, digitalized platform governance model.

Currently, WEGO has established 4 regional marketing centers globally, 6 overseas R&D centers, and 15 overseas offices, with a sales network covering more than 100 countries and regions worldwide.The establishment of the new group this time is an important measure for WEGO to implement the "three transformations" development strategy, and also a key step for it to open up its second growth curve and move towards diversified development.

In 2023, WEGO Group adhered to the advancement ofThe transformation of industrial concepts, the transformation of governance models, and the transformation of value representation"Three Transformations" as the Guiding Principle, Fully Leverage Own Advantages, Strengthen Innovation Support, Drive Industrial Transformation, Deepen Digital Empowerment, and Resonate the Strong Notes of High-Quality Development.

It is reported that WEGO Cloud Innovation Park serves as the core operational platform in WEGO Group's strategic layout in the Yangtze River Delta.Will feature "Space + Service + Investment," focusing on four core industries: major surgery, early screening and diagnosis, health technology, and blood purification and metabolism, to build capabilities in CRO (Contract Research Organization), CDMO (Contract Development and Manufacturing Organization), and CSO (Clinical Science Organization).A one-stop professional medical device park with full-service functions.

The park is located in the Shanghai Nanqiao Bridge Smart Healthcare Innovation Experimental Zone and 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 3,000 office staff.Currently, the engineering construction has entered the final stage and is expected to be officially delivered for operation in the second half of 2024.

WEGO Cloud Innovation Park Project Renderings

Currently, the parkActively exploring the construction of smart parks, committed to building a digital empowerment service system, covering property services, supporting services, investment attraction services, and industrial ecosystem services, to help parks achieveIntegrated全域management with virtual control over physical operations, and comprehensive, multi-dimensional perception of the overall park construction.Achieve deep integration of various application modules.

In addition, WEGO Cloud Intelligence Innovation Park will fully leverage its own industry group, target customers, expert resources, and extensive network of ecological partners. By promoting interconnection among enterprises within the park, efficiently integrating industrial ecosystem resources, and utilizing big data accumulation and algorithms, it will meet the personalized needs of resident enterprises and industry players, empowering industry development through digital intelligence.

WEGO Cloud Innovation Park Digital Industry Ecosystem Planning

Smart Park

Path to Building Smart Parks

New Group'sEstablishment isWEGOAn important measure to implement the "Three Transformations" development strategy, and also a crucial step for WEGO to open its second growth curve and move towards diversified development.

In addition, the WEGO International Medical Device Industrial Park, with a total investment of 5 billion yuan, officially settled in Qingdao High-tech Zone in 2022.

On November 25, 2022, the Qingdao High-tech Zone Management Committee signed with WEGO GroupA number of cooperation agreements, includingQingdao WEGO International Medical and Health Industry Headquarters, Digital Low-Carbon China Headquarters, Medical and Health Industry Fund, and other projects, marking the achievement of in-depth cooperation between WEGO Group and Qingdao High-tech Zone.

WEGO International Medical and Health Industry Headquarters in Qingdao

Among them, Phase I of the Qingdao WEGO International Medical and Health Industry Headquarters project covers an area of approximately 91 mu and mainly introduces projects invested in by industrial funds. These include the already invested RIBIOS (Qingdao) Biotechnology Co., Ltd., a Sino-Korean joint venture, Anhui Tongling Bionic Technology Co., Ltd., and other projects invested in by industrial funds.

Digital Low-Carbon China Headquarters

Digital Low-Carbon China Headquarters Project: In response to the national "Dual Carbon" strategy, the project relies on WEGO Group to build a Digital Low-Carbon China Headquarters centered on energy management, integrating R&D, production, operations, maintenance, and big data management.China's first digital low-carbon demonstration zone on the energy consumption side, establish a smart energy operation and maintenance center, set up a low-carbon technology research and development center, and build a digital low-carbon product innovation lab.

Qingdao University and WEGO Group Cooperation Project

Qingdao University and WEGO Group Cooperation Project. After the project is established in the High-tech Zone, it will rely on the outstanding advantages of Qingdao High-tech Zone in the development of the medical and pharmaceutical industries, policy support, and business environment; the high-quality resources of Qingdao University in scientific research, talent cultivation, and discipline construction; and the unique strengths of WEGO Group in achievement transformation, application promotion, and market expansion to jointly establish the Qingdao University WEGO Research Institute. The focus will be on carrying out technology research and development, achievement transformation, and commercial application in the fields of pharmaceuticals, medical devices, and rehabilitation medicine. A "production, education, research, and application" integrated industrial system will be built to lead and promote the high-quality development of Qingdao's biomedicine and medical device industries.

Healthcare Industry Fund

Healthcare Industry Fund Project, leveraging WEGO Group's strengths in medical devices, biopharmaceuticals, and rehabilitation medicine, is a collaboration involving Qingdao Guiding Fund, High-Tech Zone Guiding Fund and Industrial Fund, WEGO Capital, and Pine Capital.Establish a 2 billion yuan medical and health industry fund, introducing high-quality projects into the international medical industry park through industrial funds to achieve business attraction and capital-based investment promotion.

Data shows that WEGO GroupFounded in 1988, the group initially focused on producing low-value medical consumables such as infusion sets, syringes, blood transfusion sets, infusion needles, and PVC materials. Later, it continuously expanded into higher value-added medical device fields.

Today, WEGO has grown into a "giant" enterprise in the field of medical consumables in China.With more than 1,000 varieties and over 200,000 specifications of medical devices and pharmaceuticals, and over 1,500 patents,At the same time,Including WEGO Orthopedics, WEGOShares and 3 listed companies including Huadong CNC.

Among them,WEGO Orthopedics, as the leading orthopedic device company in China, is one of the medical enterprises with the most comprehensive coverage of orthopedic product lines in the country.Products cover spinal, trauma, joint, sports medicine, bone repair materials implants, surgical instruments, platelet-rich plasma (PRP) preparation kits, and closed trauma negative pressure drainage kits, among other fields.

Data from 2019 shows that WEGO Orthopedics ranked first among domestic manufacturers and fifth in the entire industry in China's orthopedic implant medical device market.On June 30, 2021, WEGO Orthopedics officially went public on the STAR Market, opening significantly higher on its first day of trading, reaching a high of 123.87 yuan per share at one point, but thereafterHas been in a continuous downward trend.

From October 17, 2022, to RMB 76.12 per share; on August 23, 2023, it dropped to a low of RMB 36.36 per share, with a decline of 70.65%.As of January 3, 2024, the company's stock price had been fluctuating around the 40 yuan level. On January 3, it fell below 40 yuan per share and has remained in a downward trend ever since.

Performance Under Pressure

As the stock price fell, WEGO Orthopedics' performance continued to be under pressure.The financial report shows that during 2020-2023, WEGO Orthopaedics achieved operating revenues of 1.82 billion yuan, 2.15 billion yuan, 2.06 billion yuan, and 1.28 billion yuan respectively; the total profits were 560 million yuan, 690 million yuan, 600 million yuan, and 110 million yuan respectively.

20In the first quarter of 2024, the company achieved revenue of 348 million yuan, a year-on-year decrease of 10.74%.Net profit reached 0.35 billion yuan, a year-on-year decrease of 62.92%; non-net profit attributable to shareholders reached 0.35 billion yuan, a year-on-year decrease of 62.03%.

Personnel Changes

Moreover, since the beginning of this year, WEGO Orthopedics has also experienced significant personnel changes.On the evening of March 8, WEGO Orthopedics announcedCloth,Chairman Gong Jianbo, Directors Yan Xia, and Qiu Guoping submitted written resignation applications.

Subsequently, on March 27, WEGO Orthopaedics issued another announcement,Chen Min, a director of the company, will be appointed as the new chairman, replacing Gong Jianbo who has resigned.

One month after WEGO Orthopedics announced personnel changes, Weigao Group also released an announcement regarding changes in its board of directors.

The announcement stated that, according to the "WEGO Group Co., Ltd. Shareholders' Resolution,"The number of members on the WEGO Group's board of directors has been increased from five to seven. Lian Xiaoming has resigned as a director of the company, and Chen Min, Gao Yu, and Cong Rinan have been elected as new directors, each serving a three-year term. The new board of directors consists of seven members: Chen Lin, Tang Zhengpeng, Long Jing, Yan Xia, Chen Min, Gao Yu, and Cong Rinan.

This change means that Lian Xiaoming, the former director of Weigao Group, has exited, and three new directors have been added: Cong Rinan, Chen Min, and Gao Yu.

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As is known to all, 2022-2023 was a "big year" for the centralized procurement of orthopedic consumables, with the three major fields of orthopedic joints, trauma, and spine all included in the scope of centralized procurement of orthopedic medical consumables. This had a considerable short-term impact on orthopedic consumables companies, with many A-share orthopedic listed companies in China facing the dilemma of both revenue and net profit being "locked."This also accelerates industry reshuffle and forces enterprises to change.

The impact of the 2024 centralized procurement continues,The establishment of WEGO Cloud Innovation Park is expected to leverage Shanghai's geographical advantages to quickly capture the domestic and international markets, seize the high ground of technology, capital, and talent, and create conditions for the Group's next 30 years of development.

So, can WEGO's choice of "second entrepreneurship" ultimately create a whole new business empire? Medical Device News will continue to follow up.

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