Aibo Medical to Acquire Controlling Stake in Demei Medical, Expanding into Sports Medicine

(Source: Beijing Business Today)

Focusing on the Ophthalmology TrackEyebright Medical, planning to enter the sports medicine field. On January 21, Eyebright Medical announced that it plans to acquire no less than 51% of the equity of Delta Medical (Chongqing) Medical Technology Co., Ltd. ("Delta Medical") and gain control of it. It is reported that Delta Medical is a leading enterprise in China's sports medicine industry. Through this acquisition, Eyebright Medical will extend its reach into niche markets such as sports medicine.

Behind the Planned Entry into Sports Medicine, Eyebright Medical's Performance Growth is Weak; This Acquisition is Expected to Bring New Profit Growth Points for Eyebright Medical. On January 21, a relevant person in charge of Eyebright Medical told Beijing Business Today reporters that they hope to focus on the health track with dual attributes of medical and consumption through acquisitions, and seize new development opportunities.

Plan to Purchase No Less Than 51% Equity of Delta Medical

On January 21, Eyebright Medical announced that it plans to acquire no less than 51% of Delta Medical's equity and gain control of the target company through a combination of acquisition loans and its own funds. The estimated overall valuation of the target company for this acquisition is no more than 1 billion yuan.

Data shows that Delta Medical is a technology-based enterprise focusing on the sports health industry, with a strategic layout covering the entire field of sports health from preoperative prevention, surgical treatment, to postoperative rehabilitation. Eyebright Medical stated that the current sports medicine market in China is still dominated by international manufacturers. After the 2024 inclusion of sports-related injury implants in the national volume-based procurement plan, opportunities are created for local enterprises to expand their market share and enhance industry influence. As a leading Chinese brand in sports medicine, Delta Medical has successfully been selected into Procurement Group A, placing it in the first tier of the industry. It can leverage the first-mover advantage in procurement to advance the process of domestic substitution.

It is reported that Eyebright Medical is an innovation-driven ophthalmic medical device manufacturer, with products covering three major fields: ophthalmic surgical treatment, myopia prevention and control, and vision care, providing one-stop solutions for ophthalmic surgery, refractive error correction, and optometric consumption.

Eyebright Medical mentioned that the company plans to acquire a controlling stake in the target company to cultivate new profit growth points, extend its existing R&D advantages and management system into high-potential niche sectors such as sports medicine, and lay a solid foundation for long-term performance growth. This aligns with the company’s long-term development strategy and serves the interests of the company and all shareholders.

A representative of Eyebright Medical stated, "The sports health industry is highly developed globally, and China is currently one of the fastest-growing significant markets. The competitive landscape in the Chinese market is mainly dominated by foreign brands, leaving considerable room for domestic substitution. We hope to further expand our market share by investing in top-tier quality brands."

Regarding integration issues, the aforementioned person in charge mentioned that sports medicine is a relatively comprehensive department, covering a very wide range, including disciplines such as regenerative materials and synthesis, which are closely related to the company's existing R&D pipeline as well as the R&D registration process and quality management system. "Delta Medical also has business in North America and Europe. Currently, many Chinese companies adopt a 'packaging' approach during the 'going overseas' process. However, the company has not limited itself to a single product like intraocular lenses for its 'going overseas' strategy but hopes to achieve synergy in 'going overseas'," the person in charge stated.

The target company has committed to a high net profit.

Notably, this transaction involves performance commitments, which significantly differ from Delta Medical's current performance situation.

Financial data shows that from 2023 to 2025, Delta Medical's revenue will be 178 million yuan, 236 million yuan, and 286 million yuan respectively, with adjusted net profits of -7.0782 million yuan, 9.2937 million yuan, and 23.6023 million yuan respectively.

Delta Medical's founder has committed that the target company should achieve audited net profits of 45 million yuan, 55 million yuan, and 65 million yuan in 2026, 2027, and 2028 respectively, or accumulate a total audited net profit of 165 million yuan from 2026 to 2028. If the target company fails to meet the aforementioned performance targets, the investor has the right to require the company's founder to transfer the corresponding equity to the investor at zero cost or the lowest price permitted by applicable laws.

Fu Jian, director of Henan Zejin Law Firm, stated that the amount of performance commitment is usually determined through negotiations between the transacting parties based on factors such as the potential of the target company, market environment, and competitive conditions. The determination of the performance commitment amount typically takes into account the historical performance, future development potential, and market prospects of the target company.

Eyebright Medical’s Relevant Responsible Person Told Beijing Business Journal Reporters That Delta Medical Is a Fast-Growing Company, and the Sports Medicine Track Is Also Growing Very Rapidly. Patent Technology, Overseas Channels, Domestic Channels, and Medical Expert Resources Are All Advantages Possessed by Delta Medical. Additionally, Delta Medical's Founder Has Deep Cultivation in This Industry for Many Years, Possessing Strong Business Development Capabilities. Eyebright Medical Hopes That After This Merger and Acquisition, The Two Parties Can Combine Their Strengths, Therefore, They Have Established Relevant Performance Commitments.

The announcement shows that Delta Medical has established modern production bases and R&D centers in Beijing, Chongqing, Sichuan, and other places. As of the date of the announcement, Delta Medical has been granted 276 authorized patents and obtained 34 Class III medical device product registration certificates, 48 Class II medical device product registration certificates, and 63 Class I medical device product registration certificates. Delta Medical has access to clinical expert resources and has built an academic platform to strengthen collaboration with professional medical talents in the field of sports medicine through academic promotion; it also has extensive sales channels, with domestic sales covering all over China and overseas sales reaching Southeast Asia, Latin America, the Middle East, Europe, and other regions.

In addition, the announcement mentioned that Delta Medical currently has more than 300 employees, with team members coming from various fields such as clinical, research, and marketing. After the completion of this transaction, the company will still retain the core team of the target company.

Weak Performance Growth

Eyebright Medical, which plans to enter the field of sports medicine, is currently experiencing weak performance growth. Financial data shows that in the first three quarters of 2025, Eyebright Medical's revenue reached 1.144 billion yuan, a year-on-year increase of 6.43%; net profit attributable to shareholders was 290 million yuan, a year-on-year decrease of 8.64%. This marks the first time since Eyebright Medical's listing that its net profit for the first three quarters has declined.

Eyebright Medical stated in its Q3 2025 report that the decline in net profit was mainly due to a decrease in revenue from intraocular lenses and contact lenses, as well as increased promotion of its own contact lens brand. Regarding intraocular lenses, the income and sales volume decreased year-on-year due to the impact of national centralized procurement and adjustments in medical insurance expenditure structures in some provinces and cities. As for contact lenses, the terminal price declined due to the consumer market environment, while on the production side, intensified competition with the expansion of domestic capacity led to a decrease in both the factory price and profit margin of contact lenses.

Deng Yong, Director of the Center for Health and Wellness Legal Research, Innovation and Transformation at Beijing University of Chinese Medicine, told Beijing Business Today that after the national centralized procurement policy for artificial crystals was implemented in May 2024, the number of surgeries and surgery prices at terminal hospitals dropped, leading to a decline in the ex-factory price of artificial crystals. This directly reduced the company's surgical business revenue and gross profit growth rate. Additionally, intense competition in the myopia prevention and control field has increased the number of competing products, causing Eyebright Medical's ex-factory price for orthokeratology lenses to decrease, thereby weakening its contribution to performance growth.

A representative of Eyebright Medical stated that the company will continue to launch new products, accelerate the commercialization of innovative R&D pipelines, and improve its current revenue and product structure.

In the secondary market,East MoneyShows that, in the post-rights-adjustment form, Eyebright Medical's stock price has fallen more than 70% from its historical high in 2021. As of the close on January 21, Eyebright Medical was trading at 62.4 yuan per share, with a total market value of 12.07 billion yuan.

Reporter Ding Ning from the Beijing Business Journal