Lifesense Healthcare and Yuhong Investment Establish RMB 50 Million Medical Industry Investment Fund to Expand Full Healthcare Ecosystem

VCBeat (WeChat ID: vcbeat)On December 22, it was learned that Guangdong Lifesense Medical Electronic Co., Ltd. (hereinafter referred to as “LifeSense Medical”) announced that, in order to expand investment channels, fully leverage its industrial advantages, financial capital strengths, and synergies within the company’s healthcare sector, and to achieve the strategic objective of extending the industry chain, it proposes to collaborate with Yuhong Equity Investment Management (Guangzhou) Co., Ltd. (hereinafter referred to as “Yuhong Investment”) jointly initiatedEstablish the Guangzhou Lexin Yuhong Medical Industry Investment Fund.

This fund is primarily dedicated to investing in the core business sectors of Lesun Medical, including medical services, medical devices, medical information technology and services, pharmaceuticals, and the broader health industry.The total size of the fund is approximately RMB 50 million, of which Lifecare Medical contributed RMB 49 million and Yuhong Investment contributed RMB 1 million.Meanwhile, Yuhong Investment serves as the fund manager, responsible for managing the day-to-day affairs of the fund.

Capital contributions to the Fund shall be made in cash by both parties in three installments following the establishment of the Healthcare Industry Investment Fund: the first installment shall account for 33% of the subscribed capital contribution; the second installment, 33.5%; and the third installment, 33.5%. The timing of each installment may be adjusted based on project readiness, with specific dates subject to written notice from Yuhong Investment.

Lifesense Medical, established in Guangdong in 2002, is a provider specializing in medical health electronic products and services. Its core business encompasses the research and development (R&D) and manufacturing of home-use medical health electronic devices, overseas ODM sales, domestic proprietary brand sales, as well as the R&D and operation of the Lifesense Smart Health Cloud Platform.

Lifesense Medical is the second Chinese wearable device sales company after Xiaomi.Currently, the company has six wholly-owned subsidiaries—Shenzhen Lifesense, Chuangyuan Sensors, Chuangyuan Trading, Guangzhou Dongxin, Zhongshan Lifesense, and Lifesense Health Inc.—one equity-participating company, Yien Technology, and three branch offices.

On November 16, 2016, after more than two years of waiting, Lifesense Medical officially made its initial public offering (IPO) on the Shenzhen Stock Exchange.In 2016, Lifesense Medical achieved operating revenue of RMB 771 million, a year-on-year increase of 22.52%; net profit attributable to shareholders of the listed company amounted to RMB 80.5207 million, representing a year-on-year growth of 60.44%; basic earnings per share were RMB 1.77 per share.

At the time of its initial public offering, Lifesense Medical disclosed that the company would continue to strengthen the research and development of home medical health electronic products (hardware) and the Lifesense Smart Health Cloud Platform (software). By partnering with third-party health service providers to deliver value-added services to users, the company aims to further enhance user stickiness and core competitiveness of its products, intensify marketing efforts—particularly in the Chinese market—and improve its profitability.

To achieve this goal, Lifesense Medical has collaborated with several well-known industry enterprises in recent years to jointly develop the broader health and wellness sector.

On January 12, 2017, Lifesense Medical and Health 160 (i.e., JiuYi 160) signed a strategic cooperation agreement.The two parties will engage in deep cooperation in areas such as advertising services, e-commerce, product integration, hospital expansion, and training exchanges. Meanwhile, during the strategic cooperation period, they will jointly promote integrated products and establish collaborations for regional tiered diagnosis and treatment.

On October 10, 2017, Lifesense Medical and Cooper Aerobics Health Industry Co., Ltd. (hereinafter referred to as “Cooper”) became strategic partners., signed a ten-year cooperation agreement to engage in comprehensive collaboration across R&D, products, marketing, and services, jointly developing holistic health management solutions.

On December 12, 2017, Lifesense Medical entered into a Strategic Cooperation Agreement with Hu Dayi and Beijing Guibai Technology Co., Ltd. (hereinafter referred to as “Guibai Technology”).to implement and advance the national “Healthy China 2030” goals, promote the widespread application of Professor Hu Dayi’s research findings on the “Five Prescriptions for Health Management,” enhance the medical service capabilities of healthcare providers, and improve self-health management among individuals with cardiovascular diseases and those in a suboptimal health state.

This collaboration between Lifesense Medical and Yuhong Investment also represents a major strategic development initiative for the company.

Yuhong Investment was established on August 23, 2017, with its investors being Huang Yu (holding a 51% stake) and Lü Hong (holding a 49% stake). Huang Yu is a former senior executive of Lifecare Medical, who resigned from the position of Deputy General Manager of the company on June 5, 2017. Lü Hong is a former supervisor of Lifecare Medical, who resigned from the position of Supervisor of the company on March 27, 2017.

Lifesense Medical stated that it has jointly established a healthcare industry investment fund with Yuhong Investment. The company aims to leverage its partner’s experience and resources, as well as the fund’s investment and financing advantages, to accelerate the layout of its core business along the industrial chain.

Secondly, in business entities related to off-balance-sheet investments by listed companies,This will not only facilitate the company’s inorganic growth but also create new performance drivers, thereby accelerating its healthy and sustainable development.