Rongke Technology to Acquire Shenzhou Shihan for RMB 280 Million to Strengthen Medical IoT Capabilities

On the evening of September 5, Rongke Technology, which had been suspended from trading for nearly two months, announced that it plans to acquire 100% equity interest in Beijing Shenzhou Shihan Technology Co., Ltd. through a combination of share issuance and cash payment, with a transaction price of RMB 280 million.

Among them, the listed company will pay RMB 168 million by issuing shares and RMB 112 million in cash, and will issue shares to no more than five specific investors to raise matching funds not exceeding RMB 162.9 million, which will be used to pay the cash consideration for this transaction, construct the remote video service platform project based on tiered diagnosis and treatment, and pay fees to relevant intermediaries.

According to VCBeat, Shenzhou Shihan was founded in 2010 with a registered capital of RMB 11.8 million. The company currently employs nearly 400 people, including over 100 technical staff.The company boasts a comprehensive product portfolio, with its digital healthcare offerings encompassing product lines such as Smart Outpatient Services, Digital Wards, Video Collaboration, and the Medical Internet of Things (IoMT). These information technology solutions essentially cover hospital needs in the “visualisation” niche segment.The company is one of the few in China with integrated R&D and design capabilities for both hardware and software.

Since its inception, Shenzhou Shihan has focused on the research, development, production, and sales of medical “visualization” information products. The company has accumulated extensive experience in this field and has successfully implemented several landmark projects, including the outpatient and ward systems at Beijing Fuwai Hospital, the outpatient and information dissemination systems at the Capital Institute of Pediatrics, and the ward system at Shanghai DeltaHealth Hospital. Through these efforts, it has established a strong brand presence within the industry.

Rongke Technology stated in its announcement that the medical informatization market is experiencing rapid growth, with broad prospects for industry development. Upon completion of this transaction, Rongke Technology will be able to expand its business in the field of medical information “visualization,” extend its position within the medical informatization industry’s value chain, and lay a solid foundation for the company’s future rapid development.

This transaction represents a significant step in the Company’s implementation of its inorganic growth strategy, further optimizing its business layout within the healthcare informatics industry, promoting coordinated development across its various business segments, and thereby increasing its market share in the industry.

In recent years, Rongke Technology has actively advanced its strategic transformation, making in-depth investments and explorations in the smart healthcare and health data product sectors. In September 2015, the company acquired a 51% equity stake in Mijian Medical; in March 2016, it established a health data industry fund; and in September 2016, it entered into a strategic cooperation agreement with Xilian Software. In the first half of this year, the company completed the acquisition of the remaining equity interests in Mijian Medical, thereby largely completing its transition from traditional business operations to a provider of smart healthcare solutions and medical big data services.

In its publicly disclosed announcements, Rongke Technology once stated that 2017 marked the inaugural year of the “Rongke 3.0” phase, during which the company would continue to refine its industrial and market layouts to advance the strategic goal of becoming a “Data Cloud Doctor and Health Smart Angel.”