Dongxing Medical Restructuring Progress: Additional audit and update work on the financial data involved in the transaction

Radar Finance | Written by Yang Yang | Edited by Li Yihui

On February 26, Dongxing Medical (Stock Code: 301290) announced that the company plans to acquire a 90% stake in Wuhan Yijia Bao Biological Materials Co., Ltd. through a cash payment. This transaction is expected to constitute a major asset restructuring as defined by the “Administrative Measures for Major Asset Restructuring of Listed Companies.” The company has entrusted Huatai United Securities Co., Ltd. as an independent financial advisor, and has also engaged Beijing Tianyuan Law Firm, Xiamen Jaxue Asset Appraisal and Real Estate Valuation Co., Ltd., and Lixin Certified Public Accountants (Special General Partnership) to provide legal, valuation, and auditing services for this restructuring.

Currently, the transaction is in the preliminary planning stage, with risks that it may not pass decision-making and approval procedures. Due to the validity period requirements for financial data, the company and the target company are actively organizing relevant parties to extend the audit and update the financial data involved in this transaction. The company will also disclose the progress of the project in a timely manner in accordance with relevant laws and regulations.

According to Tianyancha, Dongxing Medical was established on February 21, 2001, with a registered capital of 100.1733 million RMB. The legal representative is Wan Shiping, and the registered address is No. 24-4, Changyang Road, Wujin District, Changzhou. Its main business involves the research, production, and sales of surgical medical devices, mainly staplers.

Currently, the company’s chairman is Wan Shiping, the secretary of the board is Gong Aiqin, with 703 employees. The actual controllers are Wan Shiping and Wan Zhengyuan.

The company has stakes in 7 affiliated companies, including Dongxing Huamei Medical Technology (Changzhou) Co., Ltd., Sanfeng Dongxing Medical Equipment (Jiangsu) Co., Ltd., Jiangsu Zihang Precision Hardware Co., Ltd., Changzhou Weike Medical Devices Co., Ltd., and Changzhou Dongxing Biopharmaceutical Co., Ltd.

In terms of performance, the company’s revenue for 2022, 2023, and 2024 was 442 million RMB, 434 million RMB, and 435 million RMB, respectively, with year-over-year changes of -0.99%, -1.89%, and 0.40%. The net profit attributable to shareholders was 103 million RMB, 97.22 million RMB, and 97.42 million RMB, with year-over-year growth of -7.03%, -5.15%, and 0.21%. During the same period, the company’s asset-liability ratio was 7.55%, 6.16%, and 9.22%.

Regarding risks, Tianyancha data shows that the company has 8 internal Tianyan risks, 14 surrounding Tianyan risks, 1 historical Tianyan risk, and 30 early warning Tianyan risks.