Daan Gene's Portfolio Companies Ocean Medical and Zhuhai Yasha File for NEEQ Listing

On August 10, 2016, Da An Gene issued an announcement stating that two of its indirect subsidiaries—Guangdong Dayang Medical Technology Co., Ltd. (hereinafter referred to as “Dayang Medical”) and Zhuhai Yasha Biotechnology Co., Ltd. (hereinafter referred to as “Zhuhai Yasha”), in which Da An Technology (a wholly-owned subsidiary of Da An Gene) holds equity interests—intend to restructure into joint-stock limited companies and apply for listing on the National Equities Exchange and Quotations (NEEQ).

According to VCBeat (WeChat official account: vcbeat), Dayang Medical and Zhuhai Yasha are both second-tier subsidiaries in which Da An Gene holds equity interests. Specifically, Da An Technology holds a 19.98% equity stake in Dayang Medical and a 10% equity stake in Zhuhai Yasha.

Zhuhai Yasha is authorized by the French Yasha Biomedical Aesthetics International Group. Adopting advanced international biotechnology and unique manufacturing processes for medical-grade skincare products, it is a professional enterprise specializing in the development, research, and sales of medical-grade skincare products.

Zhuhai Yasha primarily operates in the medical skincare sector, with its main products comprising three major series: Yashaer medical skincare products, the "Fuyin" brand of skin barrier repair products (classified as medical devices), and the ZQ-II high-end brand.

In 2008, Zhuhai Yasha was officially established, becoming the brand’s exclusive distributor in the Asia-Pacific region. Its products are primarily sold to major hospitals across China and in Southeast Asia, targeting institutions such as hospital dermatology departments, burn and plastic surgery departments, and cosmetic surgery hospitals.

Dayang Medical is a leading domestic Sino-foreign joint venture specializing in the manufacture of rehabilitation products and nursing bed series. As a high-tech enterprise dedicated to the research and development, production, and sales of rehabilitation and nursing product lines, its main offerings include wheelchairs, functional chairs (such as commode chairs and shower chairs), crutches, walkers, nursing beds, and related accessories.

Daan Gene’s core business focuses on the research and development, production, and sales of nucleic acid diagnostic reagents, diagnostic reagents for infectious diseases, and related instruments. Therefore, Dayang Medical and Zhuhai Yasha serve to a certain extent as supplementary businesses to Daan Gene and do not constitute the listed company’s core operations. The listing of Dayang Medical on the National Equities Exchange and Quotations (NEEQ) will not affect the normal operation of the listed company’s business, nor will it impact the company’s market position or sustained profitability, aligning with its long-term strategic development goals.

The proposed restructuring of Dayang Medical and Zhuhai Yasha into joint-stock companies, along with their applications for listing on the National Equities Exchange and Quotations (NEEQ), will not only help both companies further improve their corporate governance structures, promote standardized development, refine incentive mechanisms, enhance core competitiveness, and raise operational and management standards, but also facilitate the implementation of Daan Gene’s overall business strategy.