Weigao Orthopaedics Acquires Controlling Stake in Jiesibayer to Accelerate Minimally Invasive Orthopaedic Strategy

December 11,WEGO ORTHOAnnouncement of the proposed change“R&D Center Construction Project” Unused raised funds of 86.46 million yuan, through “RMB 66.46 million for the acquisition of existing equity + RMB 20 million capital increase” The combination method is planned to achieveSuzhou Jiesbyer Medical Technology Co., Ltd. (referred to as“Jiesbyer Medical”）55% equity.

If the transaction is completed,Jiesbyer MedicalWill become a holding subsidiary of WEGO ORTHO and be included in the consolidated financial statements. The transaction does not involve related party transactions or major asset restructuring, primarily focusing on the synergy between Jiesbyer Medical's minimally invasive orthopedic technology and WEGO’s industrial resources.

If the plan is reached, Jiesbyer Medical willFrom“Multiple Shareholders” Converted to“WEGO Absolute Controlling”`, which is expected to receive direct support from WEGO ORTHO in terms of supply chain, terminal channels, and medical device registration experience, theoretically addressing the resource gap in its current product registration and commercialization phase.`

Business Positioning: Technology Focus in the Minimally Invasive Orthopedics Track

Currently,Jiesbyer MedicalFocusMinimally Invasive SpineAndSports MedicineTwo Major Subdivisions, Building“Minimally Invasive Orthopedic Devices + Active Energy Devices” Dual-technology platform, with core products including electrosurgical units, surgical power systems, and ultrasonic bone scalpels, focusing on...“Comprehensive Minimally Invasive Spine Solutions”, the technical route is highly consistent with the trend of minimally invasive orthopedics in China.

As of now, no information has been retrieved from the National Medical Products Administration's medical device system.Jiesbyer MedicalProduct Registration Certificate; CombinationSeries A+ Financing in 2020“For new product registration” The use, it is estimated that its core products may still be in“Registration Approval / Clinical Trial Phase”, and has not yet been officially commercialized.

Capital Network: Two Rounds of Financing and the Evolution of Shareholder Ecosystem

Historical Investment and Financing Details

Key Characteristics of Shareholder Ecosystem

Formed after financing“Industrial Capital + Professional Medical Venture Investment” Structure: YuanSheng Venture Capital (Angel Round) and Daotong Capital (A+ Round) are both leading institutions in the healthcare field, specializing in the cultivation of minimally invasive device tracks;

Capital Exit Trace: The angel round investor, YuanSheng Venture Capital, does not appear on the latest shareholder list, suggesting an early exit through equity transfer, reflecting early-stage capital's phased recognition of technological value.

Equity Structure: Shareholder Composition and Contribution Details Before the Transaction

According to Tianyancha data,Before WEGO ORTHO's Proposed Acquisition, Jiesbyer Medical's Registered CapitalRMB 75.2625 million, with clear information on shareholders and shareholding:

Capital Operation Depth: How to Plan the Proposed Acquisition Scheme for Jiesbyer Medical's Equity and Value

(1) Equity Change Proposal: From“Decentralized Shareholding” To“Absolute Controlling Interest” Calculation

Comparison of Equity Planning Before and After Transactions

(II) Transaction Structure Value:“Acquisition + Capital Increase” The Underlying Logic of the Contingency Plan

1.Potential Benefits for Jiesbyer Medical

At the financial level:The proposed acquisition payment of 66.46 million yuan can address the exit needs of the original shareholders, while the planned 20 million yuan capital increase will be injected into product registration and production upgrades, which theoretically can alleviate...“No Revenue During Registration Phase” Cash flow pressure;

Resource Level: Avoid“Simple Acquisition” May lead to the loss of original medical resource shareholders, paving the way for subsequent clinical cooperation and policy alignment.

2. Valuation Logic: Market-Oriented Pricing Expectations for Technical Value

Stock Valuation:RMB 66.46 million is proposed to acquire RMB 3.7161 million in capital contribution, corresponding to a pre-transaction 100% equity valuation of approximately RMB 146 million, reflecting an increase of about 50% compared to the RMB 100-120 million estimated during the Series A+ round in 2020.

Incremental Valuation:The proposed RMB 20 million capital increase corresponds to a post-transaction valuation of approximately RMB 183 million for 100% equity, reflecting expectations of the commercial potential following WEGO ORTHO's channel empowerment.

Value Extension After the Deal Lands

Essentially, WEGO ORTHO's proposed controlling stake in Jiesbyer Medical represents a strategic exploration between a leading player in the orthopedic industry and a rising innovator in a niche market.—— WEGO ORTHO Hopes to Complete its Minimally Invasive Equipment Portfolio Through Mergers and Acquisitions, While Jiesbyer Medical Aims to Break Through Commercialization Bottlenecks by Leveraging Leading Resources.

But the ultimate value of this collaboration still hinges on two key variables: first, the actual effectiveness of resource synergy between the two parties after the deal is finalized—whether it can truly accelerate product registration and channel penetration; second, whether Jiesbyer Medical’s own technology can pass clinical validation and establish a unique competitive edge in the increasingly intense minimally invasive sector.

For Jiesbyer Medical, this proposed controlling stake is both an opportunity for leapfrog development and the ultimate test of its technology transfer capabilities.

▲Source: Medical Device Innovation Network

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