Kersen Technology Sells Medical Subsidiary for RMB 915 Million to Refocus on Core Consumer Electronics Business

The evening of December 8, 2025,Koson Technology (603626.SH)Publish the "Announcement on the Sale of Wholly-Owned Subsidiary's Equity" to confirm that it will RMB 915 millionThe price towardsJiangsu Yaoling Medical Technology Co., Ltd. (hereinafter referred to as "Yaoling")Transfer its wholly-owned subsidiary——Jiangsu Kesen Medical Device Co., Ltd. (hereinafter referred to as "Kesen Medical")100% Equity.

The transaction adopts the income approach for evaluation. As of the valuation benchmark date (September 30, 2025), the total equity value of shareholders amounts to 913 million yuan, with an increase of 615 million yuan and a growth rate of 206.45%. This transaction, organized by intermediaries for listing and capital increase on the Beijing Equity Exchange, requires approval at the shareholders' meeting.

Kosen Technology expects to confirm after the divestment of Kosen Medical.Approx.RMB 600 millionInvestment Income (Included in Non-recurring Gains and Losses), the company will also completely exit the medical device sector. For the buyer, Yaoling Technology, this is a strategic acquisition that will fill a key gap in its layout within the precision medical device manufacturing field.

This is not only an asset transaction, but also a typical case of the intersection of strategic adjustments by Chinese manufacturing enterprises and international capital's medical layout against the backdrop of global supply chain restructuring.

# Seller: Coson Tech's Business Structure and Strategic Contraction

Kersen Technology, established in 2010, focuses on precision metal manufacturing as its core business and serves the consumer electronics industry chain extensively. Its clients include tech giants such as Apple, Huawei, and Meta. The company’s product range covers smartphone frames, foldable screen components, AR/VR casings, hinge structures, and more, making it a typical high-end 3C manufacturing enterprise.

The medical device business is carried by Kesen Medical. Despite its technical accumulation and high barrier characteristics, its revenue share has remained relatively low (approximately 10%) and is considered a "supplementary expansion" within the company's operating system.

There are inherent differences between the two in terms of technical systems, cycle management, quality systems, and compliance requirements:

• Consumer electronics emphasize scale, high iteration speed, and high price sensitivity;

• Medical devices emphasize a rigorous design verification cycle, process stability, global quality system certification, and long-term cooperative relationships.

As the pressure from the main business becomes apparent, it is no longer sustainable to disperse resources across multiple sectors.

# Cooperation System and R&D Capabilities of Kesen Medical

Despite being sold, Coson Medical itself is a mature and competitive medical device manufacturing company, and its value is also an important source of the high premium in this transaction.

• Starting Cooperation with Medtronic (2009)：From supplying structural components to engaging in deep engineering collaboration on key product lines such as cardiac ablation, electrosurgery, and minimally invasive surgical instruments.

• Accelerated expansion after becoming independently operated in 2018：Becoming a global supplier for more than ten product lines of Medtronic, while establishing cooperative relationships with leading companies such as Zimmer and Johnson & Johnson.

As an important supplier to Medtronic, Keson Medical plays a critical role in both product and process. On one hand, Keson provides precision components for various core devices of top companies such as Medtronic, Zimmer, and Johnson & Johnson. These include parts for pacemakers, components for cardiac ablation products, knife rods for minimally invasive surgical instruments, and components related to orthopedic implants. These products generally require extremely high dimensional stability, material performance, and manufacturing consistency, posing a comprehensive test of the company’s engineering and quality systems. Keson’s long-term expertise in technical areas such as CNC machining, laser welding, and surface treatment enables it to continuously meet the stringent requirements of these international clients.

On the other hand, in terms of cooperation depth, Kesen Medical is no longer just a structural component supplier but has participated in engineering collaborations for more than ten of Medtronic's global product lines, including core R&D for the packaging process of cardiac ablation products. At the same time, Kesen has leveraged Medtronic's mature quality and compliance systems to build an environmental management, quality control, and precision manufacturing management system that meets international standards, gradually becoming an irreplaceable partner in the global supply chain.

Operating data also reflects its health:

• Revenue of 366 million yuan in 2024, net profit of 41.12 million yuan；

• Revenue in the first three quarters of 2025 was 354 million yuan, net profit was 48.24 million yuan, and net assets were 298 million yuan.

This is a medical device manufacturing platform with stable profitability, robust growth, and a high-quality customer structure.

# Why Did Coson Technology Choose to Exit?

Even if the medical business is profitable, Coson Technology still decides to divest. The main reasons are focused on:

① Pressure on Core Business and Concentrated Outbreak of Capital Demand

The first three quarters of 2023–2025Accumulated Losses of the CompanyRMB 8.73 billion，And face high accounts receivable (1.17 billion yuan) and a tight cash flow problem.

② Insufficient synergy,反而 reducing the efficiency of the main business

The R&D models of the two tracks are completely different, and the medical business反而占用管理资源.

③ Risk of Increased Uncertainty in Global Supply Chains

The medical business is highly dependent on American-funded clients. Against the backdrop of Sino-US trade friction, the business cycle has significantly lengthened, and risks have intensified.

④ Company Strategy Shift

Focusing on the consumer electronics + energy storage industry chain, and accelerating the layout of overseas production capacity (such as the Malaysia factory project), requires a significant amount of capital.

Therefore, this sale is both a cash recovery action under financial pressure and a natural result of the company's strategic focus.

# Acquirer: Strategic Layout of Yaoling Technology and LYFE Capital

Yaoling Technology: China M&A Platform Established for This Transaction

Yao Ling Technology was established in November 2025, with a registered capital of 64.55 million US dollars, wholly owned by Singapore's FSP Holdings. It is an important carrier for LYFE Capital to undertake medical manufacturing assets in China.

Its financial and credit status is stable, with clear sources of funding, and it has the capability to acquire and operate large-scale manufacturing assets.

LYFE Capital: A Healthcare Investment Platform with a Global Perspective

LYFE Capital is a large private equity fund platform focused on healthcare, managing assets exceeding 2 billion US dollars, with offices in Shanghai, Hong Kong, Seoul, Singapore, and Palo Alto, USA.

Investment covers more than 80 medical enterprises, with typical cases including:

• ProfoundBio(ADC, acquired by Genmab for $1.8 billion in 2025)

• MicroPort Medical(Surgical Robot)

• Zhenge Bio, Sinoway Bio, Burning Rock Medtech, Kanghui Healthcare, etc.

LYFE's investment logic has always been:
Invest in hard technology + invest in global potential + invest in platform-level assets that can generate industrial synergy.

# Transaction Observation: From CapitalThe Shift in Production to Deep Structural Changes in the Industrial Chain

1. Medical Device CDMO Enters "Industry Consolidation Phase"

As global medical device innovation accelerates, the manufacturing end is gradually transitioning from decentralized suppliers to platform-based CDMOs.
Kersen Medical, with its "international system + R&D collaboration capabilities + stable major clients," has become a scarce resource in the integrated market.

Description of This Transaction:China's medical manufacturing is moving from OEM to higher-tech ODM/CDMO models.

2. The exit of Kersen Technology reflects the systematic challenges faced by manufacturing companies in cross-sector expansion.

In the past five years, several manufacturing companies have attempted "to enter the medical device industry from 3C," but only a few have succeeded.
The reason lies in the fact that the product cycles, quality systems, and compliance requirements of medical devices are completely different from those of consumer electronics.

Kosen Technology's exit reflects a mature manufacturing company's strategic retreat under insufficient resource allocation and pressure on its core business, which is a rational choice.

3. The entry of LYFE marks the globalization of medical manufacturing entering the "asset acquisition phase."

Over the past decade, fund investment in medical enterprises has been more concentrated on the R&D side, but now capital is beginning to penetrate the manufacturing side. The underlying logic is:

• Global Supply Chain Restructuring (China-US, ASEAN, Europe)

• Continuous Innovation in Medical Devices Drives Manufacturing Demand

• Asia Manufacturing Offers the Best Balance of Cost-Quality-Engineering Capability

LYFE's acquisition of Kossen Medical is an important signal that the global competition in the medical device CDMO industry has officially entered the "hard asset layout phase."