Langzi Co., Ltd. to Acquire 100% Equity of Xi'an's Veteran Aesthetic Hospital Gao Yisheng for RMB 267 Million

Medical aesthetics has become the fastest-growing sector in the health industry, following maternal and child healthcare and dentistry. In recent years, many listed real estate companies and capital investors have entered this lucrative field.Langzi Shares is one such company, rapidly entering the medical aesthetics industry through mergers and acquisitions.。

VCBeat (WeChat: vcbeat) has learned that on January 1, 2018, Lancy Co., Ltd. issued an announcement stating its intention to acquire a total of 100% equity interest in Shaanxi Gao Yisheng Medical Aesthetic Hospital Co., Ltd. (hereinafter referred to as “Gao Yisheng”) held by Zunyi Yuanheng, Zunyi Yunshi, China-Korea Fund, and Fashion Interconnect, respectively, through its wholly-owned subsidiary, Lancy Medical, using self-owned funds amounting to RMB 267 million. The target companyTotal valuation: RMB 267 million。

According to available information, among the counterparties, Zunyi Yuanheng and Zunyi Yunshi are limited partnerships controlled by the management of the target company, which originally held 40% equity interest in the target company. Langzi is a limited partner of the China-Korea Fund, contributing 21.13% of the capital, while the China-Korea Fund is a limited partner of Fashion Interconnect, contributing 53.55% of the capital.

Gaoyisheng is a medical aesthetics hospital, featuring five major clinical departments: Cosmetic Surgery, Minimally Invasive Aesthetics, Cosmetic Dermatology, Traditional Chinese Medicine (TCM) Aesthetics, and Cosmetic Dentistry.Offering plastic surgery, dermatological aesthetics, and minimally invasive cosmetic procedures, its medical aesthetics brand “Gao Yisheng” was founded in 1991. The founding team has 26 years of experience in surgery, minimally invasive procedures, and hospital management for plastic surgery institutions. It is among the earliest medical aesthetics institutions in the Xi’an region, having accumulated substantial expertise over the years,To Become Xi'an's Premier Medical Aesthetics Brand。

VCBeat has learned that the foundingMs. Gao Xiumei was among the earliest practitioners in the medical aesthetics industry in the Xi’an region., enjoys a widespread reputation in the industry.

Following the acquisition of Gao Yisheng,, Langzi Co., Ltd. has initially established a “1+N” industrial layout in Chengdu and Xi’an, the two core cities of western China, i.e., in specific regionsEstablish a medical aesthetics institution system comprising one large-scale plastic surgery hospital and multiple small chain outpatient clinics/clinicsThe Company will further integrate resources from all parties, with the primary strategic focus on strengthening the regional competitiveness of its affiliated medical institutions, and accelerate the development and layout of the medical aesthetics industry.

Gaoyisheng achieved operating revenue of RMB 32.2682 million and net profit of RMB 3.5116 million in 2016, and operating revenue of RMB 76.2052 million and net profit of RMB 14.4480 million from January to September 2017.

Pursuant to the “Equity Transfer Agreement,” Gaoyisheng Medical Aesthetic Hospital committed to contributing a net profit of RMB 62.5 million to Langzi Shares for the period from 2017 to 2019. Among this,In 2017, the contributed net profit was RMB 18 million; in 2018, it was RMB 20.7 million; and in 2019, it reached RMB 23.8 million.。

Lancy Group stated that this transaction represents a further expansion of its strategic layout for the “Pan-Fashion Industry Interconnected Ecosystem” within the medical aesthetics business segment. Originally founded in the apparel industry, Lancy Group operates over 500 offline stores and has amassed a large consumer base of mid-to-high-end women, naturally extending its business from clothing to skincare products and medical aesthetics.

Since 2016,Through more than a year of operations of the two major medical aesthetics brands, "Milan Baiyu" and "Jingfu Medical Aesthetics," the company, it has accumulated extensive experience in standardized governance, talent team building, and the improvement of operational incentive systems. As a newly introduced high-end medical aesthetics brand, Gao Yisheng aligns closely with the company’s strategy for high-quality medical aesthetics and its standardized operational philosophy, facilitating the transformation of the medical aesthetics business into a key core profit segment.

Lancy Co., Ltd. Increases Its Stake in the Medical Aesthetics Sector Through Mergers and Acquisitions.In April and June 2016, the company successively integrated South Korea’s Dream Hospital and six medical aesthetic hospitals under the brands “Milan Baiyu” and “Jingfu Medical Aesthetics.” In 2017, by investing its own funds and piloting an incentive mechanism based on a partner system, the company added two Jingfu Medical Aesthetics clinics and planned to expand the “Jingfu Medical Aesthetics” network to nine facilities in the near future, thereby steadily advancing its medical aesthetics strategy.

Upon completion of this acquisition, the Company will own four major medical aesthetics brands: “Mengxiang,” “Milan Baiyu,” “Jingfu Medical Aesthetics,” and “Gao Yisheng,” further enhancing its medical aesthetics portfolio and becomingAmong A-share listed companiesA Model for Medical Aesthetics Layout.

Lancy Group currently operates numerous offline stores in its high-end women’s apparel segment and has amassed nearly 100,000 VIP members, laying a customer foundation for the future development of its medical aesthetics business and fostering synergistic growth. In the future, Lancy will, throughTechnological Accumulation and Upgrading, Brand Penetration into Lower-Tier Markets, Standardized Scale ExpansionThe interplay of such strategies and tactics establishes a first-mover advantage barrier in the medical aesthetics industry.