Guangzhou Pharma and Midea Group Forge Strategic Alliance to Advance Medical Robots and Smart Logistics

VCBeat (WeChat ID: vcbeat) has learnedOn September 19, Guangzhou Pharmaceutical Group (GPHL) and Midea Group officially signed a strategic cooperation agreement. This move follows GPHL’s strategic partnership with iFlytek announced the previous day, marking another step by GPHL to expand its presence in fields such as “pharmaceuticals + intelligence” and “smart healthcare.”

Pursuant to the Strategic Cooperation Agreement, both parties willRobotics and Medical Device Development, Health Data Applications,Intelligent Supply Chain Development, multi-dimensional cooperation in specialized sectors such as healthcare investment and intelligent manufacturing, exploring ways to achieve technological breakthroughs, product innovation, cross-sector service integration, and model optimization through joint establishment of innovative R&D platforms, incubation of enterprises, collaborative project research, and the formation of industry funds and joint ventures.

Comprehensive, multi-sector cross-industry collaboration has drawn significant attention from both signing parties. Fang Hongbo, Chairman of Midea Group, and Li Chuyuan, Chairman of Guangzhou Pharmaceutical Holdings Limited (GPHL), attended the signing ceremony held at Midea Group’s headquarters. During the ceremony, the two chairmen signed a strategic cooperation agreement, while their respective teams executed a letter of intent for collaboration on robotics and medical devices, as well as a framework cooperation agreement on extended services for modern hospital pharmaceutical supply chains and pharmacy automation solutions.

Pursuant to the “Strategic Cooperation Agreement,” both parties will exploreMedical Robots, Health Big Data, Intelligent Logisticsand other fields.

Smart manufacturing represents the developmental direction and a key growth sector of the new industrial revolution. Guangzhou Pharmaceutical Holdings Limited (GPHL) has long been attuned to the currents and trends of industrial development, strategically positioning its business landscape in areas such as “Pharmaceuticals + Intelligence” and “Smart Healthcare.” Just yesterday, GPHL formally signed a strategic cooperation agreement with iFLYTEK, China’s largest listed company specializing in intelligent voice and artificial intelligence technologies. The two parties will collaborate across multiple domains—including AI-powered hospitals, smart healthcare information service systems, intelligent customer service systems, smart marketing, intelligent terminals, and brand synergy—to establish a new benchmark for “Pharmaceuticals + Intelligence.”

The strategic alliance between Guangzhou Pharmaceutical Group and Midea Group leverages the leading advantages of both parties in their respective fields.

Driven by its “Dual-Smart Strategy” of “Smart Home + Intelligent Manufacturing,” Midea Group has transformed in recent years from a traditional home appliance manufacturer into a global technology conglomerate leading in consumer appliances, heating, ventilation and air conditioning (HVAC), robotics and industrial automation systems, and intelligent supply chain (logistics) solutions, earning a spot on the Fortune Global 500 list last year.

Midea Group holds leading resource advantages in robotics and industrial automation, intelligent supply chains, health management, and big data intelligence systems, securing a commanding position in Industry 4.0.Especially in the field of intelligent robotics, Midea Group has completed its layout across the entire industry chain, and its status and competitiveness in the robotics sector have been widely recognized by the industry.

Medical devices represent a new business sector that Guangzhou Pharmaceutical Holdings Limited (GPHL) has been actively cultivating during its 13th Five-Year Plan period. GPHL’s traditional strengths lie in the pharmaceutical manufacturing and commercial sectors.Developing new business models in medical devices will fill the Group’s supply chain gaps in healthcare services., and improve the development of the entire industrial chain. Meanwhile, as China’s largest pharmaceutical enterprise, Guangzhou Pharmaceutical Holdings Limited boasts a wholesale distribution and delivery network for pharmaceuticals that ranks among the top in China, along with abundant pharmaceutical talent resources. These advantageous resources will provide strong support for the cooperation between both parties.

Data shows that the current market size of China's medical device industry is approaching one trillion yuan, with an annual growth rate exceeding 25%, far outpacing the growth of the pharmaceutical industry. However, the sales revenue of China's medical device sector accounts for only about 13% of the entire pharmaceutical and healthcare industry, significantly lower than the overall level of approximately 50% seen in Europe and the United States. The robotics market has also entered a period of rapid growth.It is projected that China's robotics market will reach $6.28 billion in 2017, with a compound annual growth rate (CAGR) of 28% from 2012 to 2017, indicating broad industry prospects.

According to the Letter of Intent, both parties will explore cooperation in the research and development, manufacturing, sales, and application of medical robots, such as rehabilitation robots and surgical robots, through methods including the joint establishment of a joint venture and technical collaboration.

Intelligent Medical Logistics is another key area of collaboration between the two parties. Under the agreement, Midea Group will explore providing Guangzhou Pharmaceutical Holdings Limited with extended services for modern hospital pharmaceutical supply chains and pharmacy automation solutions, thereby accelerating Guangzhou Pharmaceutical’s strategic layout in the field of intelligent medical logistics.

Currently, smart logistics has become one of Midea’s key strategic segments. In May this year, it was rebranded as Annto Smart Link, integrating logistics equipment and supply chain finance into its business scope.Last year, Midea Group's logistics business generated revenue of approximately RMB 5 billion, a year-on-year increase of 25%, and is projected to further grow to RMB 6.7 billion this year.

In addition, both parties will fully leverage their respective strengths to collaborate on health management and the development of big data in healthcare, jointly establish a health big data center, build an innovative service system for health management, and develop software and hardware products for health services. As business cooperation advances, the two sides will further explore collaboration at the capital level to accelerate layout across the entire industry chain.

Fang Hongbo, Chairman of Midea Group, stated, “Midea’s exploration and development in robotics, industrial automation, and the emerging smart logistics sector will play a positive role in our cross-industry strategic partnership with Guangzhou Pharmaceutical Holdings. We hope that this collaboration between the two Guangdong-based enterprises will open up new possibilities for the intelligent transformation of Chinese companies.”

In early 2017, Guangzhou proposed the vigorous implementation of the “IAB” strategy, focusing on the robust development of three major industries: next-generation information technology, artificial intelligence, and biotechnology. Li Chuyuan, Chairman and Party Secretary of Guangzhou Pharmaceutical Holdings Limited (GPHL), stated that as a leading enterprise in the biomedical industry, GPHL should take proactive initiatives and strive to be at the forefront. This cross-sector collaboration with Midea Group represents an innovative move to further deepen the development of the IAB industries.

In the future, Guangzhou Pharmaceutical Holdings Limited (GPHL) will further expand its presence in this field through international cooperation, mergers and acquisitions, equity investments, and other strategic initiatives. By strengthening its strategic layout, GPHL aims to break into the Fortune Global 500 by 2020, ultimately evolving into a world-class integrated pharmaceutical and healthcare conglomerate encompassing pharmaceutical manufacturing, medical services, health products, health services, and commercial logistics.