Bioheart-B (02185.HK) to Invest RMB 15 Million in XinZhi Medical, Becoming Its Second-Largest Shareholder

Zhitong Finance APP reported that Bioheart-B (02185) announced on April 14, 2023, the company, Hong Kong Bio-heart Biological Technology Co., Limited, Shanghai XinZhi Medical Technology Co., Ltd., Hong Jiaqi, and other shareholders have entered into an capital increase agreement. According to the agreement, the company has agreed to invest RMB 15 million in Shanghai XinZhi Medical Technology Co., Ltd. in exchange for approximately RMB 361,100 of its registered capital, while the remaining RMB 14,638,900 will be recorded as the capital reserve of Shanghai XinZhi Medical Technology Co., Ltd.

Upon the completion of the capital increase, the registered capital of XinZhi Medical will increase from RMB 4.1652 million to RMB 4.5263 million, and the Company’s direct interest in the expanded registered capital of XinZhi Medical will be approximately 14.79%. Together with the equity in XinZhi Medical directly held by Hong Kong Bio-heart Biological Technology Co., Limited, the Group will hold a total interest of approximately 22.18% in XinZhi Medical after the capital increase. XinZhi Medical will remain as an associated company of the Company.

It is reported that XinZhi Medical, a medical device developer that has yet to generate revenue, is dedicated to the research and development of interventional non-implantable cardiovascular devices. Currently, among XinZhi Medical’s pipeline products, two drug-coated balloon (DCB) products are in the clinical stage. The registration application for the paclitaxel coronary DCB has been submitted to the National Medical Products Administration (NMPA) for approval, while patient enrollment for the clinical trial of the sirolimus coronary DCB has been completed. It is expected that the trial will be completed by the end of 2023. Compared with commonly used stents in clinical practice, DCB products can provide treatment without implanting foreign objects into the body, thereby realizing the concept of "intervention without implantation." XinZhi Medical aims to enrich its multi-dimensional pipeline through internal R&D.

Upon the completion of the capital increase, the Group will hold approximately 22.18% of the equity interest in XinZhi Medical and will become its second-largest shareholder. Although XinZhi Medical will not become a subsidiary after the capital increase and will remain an associated company of the Group, the Group will benefit from its financial performance after XinZhi Medical successfully commercializes its DCB product portfolio. The Board believes that this transaction will bring long-term strategic benefits to the Group by further strengthening cooperation and achieving synergy between XinZhi Medical's DCB products and the Group’s proprietary pipeline products.