1. Events.
The company announced on June 30 that in order to further implement the strategic objectives and plans and achieve extension development, the company intends to adopt the way of capital increase and pay a consideration of 45 million yuan to subscribe for 13.04% of the equity of Wuxi Xirui Life Technology Co., Ltd.
two。 Our analysis and judgment.
(1) there is a huge space and broad prospects for getting involved in stem cell storage business.
The purpose of the company's acquisition is based on the main business, actively expand the relevant industrial chain, carry out relevant integration, find new profit growth points, and enhance the company's core competitiveness. After the completion of this investment, the company will also enter the frontier field of stem cell storage and cell regeneration medicine. In a broad sense, the two businesses belong to the maternity industry, both of which are related to obstetrical newborns. It is expected to produce good synergy in the future. We speculate that the company is expected to continue to make breakthroughs in the field of obstetrics and gynaecology and newborns in the future to achieve the overall layout of pregnancy and maternity integration.
The company's proposed stake in Xirui Technology was established in April 2014, mainly engaged in stem cells, gene testing technology development, transfer, services, consultation, stem cell storage technical services, etc.; at present, the company is mainly engaged in the upstream stem cell storage industry, and its income mainly comes from the storage services of neonatal umbilical cord / placental stem cells (including placental mesenchymal stem cells, umbilical cord mesenchymal stem cells). The development mode of neonatal stem cell storage business is that Xirui Technology and pregnant women sign a storage service contract before the birth of the newborn, charging stem cell preparation, testing and storage fees.
The contract stipulates that Xirui Technology will collect the umbilical cord, placenta and other tissues of newborns with the cooperation of the hospital where the pregnant women give birth, and after the stem cells are separated and prepared by Xirui Technology, and after the corresponding testing reaches the storage standard of the stem cell bank of Xirui Science and Technology, the prepared stem cells are stored in the stem cell bank. At present, the company is mainly self-library, in Wuxi, Jiangsu, Foshan, Guangdong, there are two libraries, each with an actual capacity of 300000 copies, built in line with the GMP center, have been actually put into operation. In addition, the subsidiary of the company is here in Foshan and has signed a cooperation agreement with Guangdong Maternal and Child Care Hospital. At present, the sales team has coverage in Jiangsu, Shanghai, Zhejiang, Hubei, Guangdong and Beijing, with more than 40 hospitals and 100 cases of + storage through one-year operation. There are 60 people in the sales team and 20 core technical teams. The company plans to cover the industry upstream and downstream all-round cell therapy company in the future.
China's stem cell market has a huge space and broad prospects. The size of China's stem cell market is about 2 billion in 2009, and has grown to 6 billion in 2012. Due to policy and regulatory reasons, stem cell research in China is mainly focused on the field of upstream neonatal stem cell storage. The storage cost for newborns is about 20-30,000. At present, the storage rate of umbilical cord blood sent to countries and regions is more than 10%. In our country, it is only 1%, so the market space is large. According to the annual storage rate of 16 million newborns in our country, the storage fee is 20, 000 yuan, and the storage rate is 1%. It is estimated that there will be a market size of 32-32 billion.
(2) the three major strategies point directly to the future, and the prospect of integration of pregnancy and childbirth is promising.
The three major strategies for the future development of the company are:
First, traditional industries of baby care equipment continue to lead the market segment and accelerate the development and development of new products.
Second, the stapler business is bigger and stronger as a new growth point, and it already has a registration certificate, hoping to create another David.
Third, related diversification, the integration of the maternal industry to expand, prenatal, mid-partum, post-natal omni-directional layout breakthrough.
We believe that the company will continue to do the main business in the future, the baby care industry will continue to take the lead, the stapler business will accelerate its development, and strive for an early reconstruction of David. The brightest point is the integrated layout and expansion of the maternity industry. We believe that the integration of the maternity industry has a scale of hundreds of billions of dollars, and there is no leader yet. If we enter and make a breakthrough as soon as possible, the prospect is very good.