New Entrant in Aesthetic Medicine: Guangpu Electronics to Acquire 51% Stake in Chongqing Junmei Plastic Surgery Hospital for RMB 39.78 Million

VCBeat (WeChat ID: vcbeat) has learned that on June 27, Xiamen Goptronic Electronics Co., Ltd. (“Goptronic Electronics”) announced that its wholly-owned subsidiary, Xiamen Hayaoide Enterprise Management Co., Ltd., intends to acquire a 51% equity stake in Chongqing Junmei Medical Aesthetic Hospital Co., Ltd. (“Junmei Plastic Surgery”) for RMB 39.78 million using its own funds. This acquisition of equity in Junmei Hospital marks the first step in the company’s layout of the medical aesthetics industry and represents a phased achievement. In the future, the company will further enhance its capabilities in the high-end medical aesthetics sector through various means, including acquisitions and self-built facilities.

As of the valuation reference date of May 31, 2018, Junmei Plastic Surgery had audited total assets of RMB 15.5266 million, total liabilities of RMB 8.4653 million, and net assets of RMB 7.0613 million. The investment value of all equity interests held by the company’s shareholders was RMB 80.1406 million. From January to May of the current year, the company achieved operating revenue of RMB 8.529 million and operating profit of RMB 1.249 million.Net profit: RMB 1.061 millionMeanwhile, Junmei Plastic Surgery committed that its after-tax net profits for 2018, 2019, and 2020 would be no less than RMB 4.5 million, RMB 7.5 million, and RMB 8.5 million, respectively.

Basic Business Operations of Junmei Plastic Surgery

According to available data, Junmei Plastic Surgery is located in Yuzhong District, Chongqing. Established in 1987, it covers an area of 6,000 square meters and features a modern service environment along with advanced medical equipment. Led by Professor Zhang Jialong, a team of over 100 medical professionals has been dedicated to providing high-quality care, serving more than 100,000 customers to date. The facility houses five specialized centers: Aesthetic Dermatology, Scar Repair, Non-invasive Cosmetology, Plastic Surgery, and Cosmetic Tattooing.

Core Physician Resources at Junmei Plastic Surgery

Guangpu Electronics is an enterprise engaged in the R&D, production, and sales of LED lighting and key components for LED applications. The company has made corresponding technological layouts and reserves in the specialized LED market sector and has filed more than 10 patents for specialized LED lighting. Its beauty lamps and smart lamps, as part of its specialized LED product portfolio, can be applied in beauty services, providing novel technical support for the company’s development in the field of medical aesthetics.

Since its listing, the Company has formulated a strategy to better optimize its industrial structure and cultivate new profit growth drivers, by consolidating its core business while taking into account the macroeconomic landscape, its own operational realities, and industry experience."Big Health + Big Consumption"long-term development strategy. The Company has repeatedly and proactively conducted in-depth research into the current state of the medical aesthetics industry and the operational models of companies within this sector, gaining a thorough understanding of the operational logic of related upstream and downstream industries. It has determined that gradually establishing a presence in the “medical aesthetics” segment serves as a key pathway for implementing its “Big Health + Big Consumption” strategy. In May 2018, the Company invested in and established a wholly-owned subsidiary, Xiamen Hayated Enterprise Management Co., Ltd., to develop medical aesthetics and big health projects.