CMER Eye Care (03309.HK) to Acquire 55% Stake in Apollo Lens Company for RMB 50.49 Million

C-MER Medical (03309) announced that on June 1, 2023, the company proposed to acquire 55% equity of Apollo Lens Company Limited from the seller (HONG KONG OPTICAL LENS COMPANY LIMITED) for a consideration of RMB 50.49 million (adjustable), which will be paid through the issuance of bonds by the company.

Target Group has been engaged in the lens distribution business in mainland China since 2002. Currently, Target Group has nearly 100 employees and distributes customized lens products (including defocus lenses and progressive lenses) to public hospitals, private hospitals, and eye centers in mainland China.

Through the acquisition, the Group will establish a strategic partnership with the seller, with the vision of developing the Target Group into a leading customized lens brand in China with proprietary technology. As the seller's lens distribution and technology development arm in China, the Target Group has an experienced management team, a comprehensive range of customized lens products targeting myopia control and aging population, and a well-established and continuously expanding sales network. The acquisition enables the Company to immediately establish itself in the customized lens development and distribution market in China, particularly in the businesses of defocus lenses and progressive lenses.

Given the highly fragmented custom lens products industry in mainland China, coupled with the increasing demand for high-quality myopia control products and progressive lenses due to the rise in juvenile myopia and an aging population, the company believes that the target group has significant growth potential to become a leading custom lens enterprise in China. The company's extensive network with global medical and academic communities, along with its expertise in ophthalmology, will help the target group accelerate the development of a comprehensive pipeline of custom lens products.