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海尔生物合并“血王”计划折戟

Qingdao Haier Biomedical Co., Ltd.'s merger plan for "Blood King" has failed.

wallstreetcn ·  Jan 7 16:23

A specific plan recognized by all relevant parties could not be formed.

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Author | Huang Yu

Editor | Liu Baodan

In just 15 days, Haier's plan to integrate Qingdao Haier Biomedical Co., Ltd. and "Blood King" Shanghai RAAS Blood Products has failed.

On the evening of January 6, Qingdao Haier Biomedical Co., Ltd. (688139.SH) and Shanghai RAAS Blood Products (002252.SZ) announced the termination of the significant asset restructuring plan and the resumption of their stocks, ending the proposal for Qingdao Haier Biomedical to absorb and merge Shanghai RAAS Blood Products.

In response, INKON Life Technology, a sector of Haier Health, told Wall Street News that due to the complex structure of this trade, a specific plan recognized by all parties has not yet been formed. After prudently researching the opinions of the relevant parties and reaching a consensus through negotiations between both sides, to effectively protect the interests of the listed company and the majority of investors, Qingdao Haier Biomedical and Shanghai RAAS Blood Products have decided to terminate this significant asset restructuring plan.

"This decision will not affect the normal business operation of the two companies, nor will it affect the interests of the company and shareholders, especially minority shareholders. Qingdao Haier Biomedical and Shanghai RAAS Blood Products are both under Haier Health's 'INKON Life Technology,' which not only has a high degree of synergy in the Industry Chain but will also continue to deepen cooperation and focus on the biotechnology industry under the vision of 'a lifetime of health for everyone in the world.'"

At the same time, to boost investor confidence, Qingdao Haier Biomedical Co., Ltd. and Shanghai RAAS Blood Products both issued announcements proposing to repurchase Shares, with Qingdao Haier Biomedical's total repurchase fund amounting to 0.1 billion to 0.2 billion yuan, and Shanghai RAAS Blood Products' total repurchase fund amounting to 0.25 billion to 0.5 billion yuan.

It is reported that the repurchased Shares will be fully used for employee stock ownership plans or Stock-based Incentives at an appropriate time in the future, and both companies' repurchase funding sources are their own funds.

The story between HAIER SMARTHOME and Shanghai RAAS Blood Products dates back to the end of 2023, when HAIER SMARTHOME announced that it would invest 12.5 billion yuan to acquire a 20% stake in the domestic 'Blood King' Shanghai RAAS Blood Products from the international medical health company Grifols.

With the completion of the delivery in June last year, HAIER SMARTHOME became the largest Shareholder and actual controller of Shanghai RAAS Blood Products, and Shanghai RAAS Blood Products was officially merged into INKON Life Technology, advancing the 'plasma extraction' and 'plasma removal' Global Strategy based on the Blood Product business to expand into blood-derived pharmaceuticals and non-blood Innovative Drugs.

This also means that HAIER SMARTHOME's health industry, which has primarily focused on medical instruments and Medical Services, has reached an important milestone, officially entering the Blood Product track.

To further enhance business synergy, at the end of last year, Qingdao Haier Biomedical Co., Ltd. announced that it would absorb and merge with Shanghai RAAS Blood Products. However, due to Qingdao Haier Biomedical's market cap being around 10 billion at that time, while Shanghai RAAS Blood Products reached over 40 billion, this merger was referred to in the industry as 'a snake swallowing an elephant', also indicating the significant challenges of this merger.

Now, with the rapid termination of the integration, HAIER SMARTHOME can be said to have stopped the losses in time, avoiding excessive expenditure of energy and time on the integration.

According to Wall Street Insights, Shanghai RAAS Blood Products is the leading enterprise in the domestic Blood Product industry, with a rich variety of Blood Products and industry-leading scale. Currently, its plasma collection volume ranks among the top two in the industry, primarily producing and selling Blood Products, with products covering albumin, immunoglobulin, and coagulation factors.

Shanghai RAAS Blood Products' financial performance has also been relatively stable. The Earnings Reports show that in the first three quarters of 2023, Shanghai RAAS's revenue increased by 6.39% year-on-year to 6.314 billion yuan, and the net income attributable to the parent company was approximately 1.84 billion yuan, a year-on-year increase of 2.81%.

More importantly, since 2001, the country has stopped approving new Blood Product enterprises, resulting in a closed Industry. The licenses for Blood Product enterprises are scarce, making HAIER SMARTHOME's opportunity to acquire Shanghai RAAS particularly valuable.

In recent years, HAIER SMARTHOME has made significant strides in the big health sector, starting in 2019 with the establishment of the INKON Life Technology health ecosystem brand, focusing on the three major Industries of life sciences, clinical medicine, and biotechnology. After acquiring Shanghai RAAS, it has a total of three listed companies, including Qingdao Haier Biomedical Co., Ltd. and INKON Life Technology (300143.SZ).

These two companies have their respective focuses: INKON Life Technology mainly engages in Medical Services and medical instruments; Qingdao Haier Biomedical Co., Ltd. focuses on life sciences and medical innovation products and services, covering various scenarios such as smart laboratories, digital hospitals, smart public health, and smart blood use.

The addition of Shanghai RAAS will help enhance the synergy of HAIER SMARTHOME's big health business. For instance, the Blood Products from Shanghai RAAS can utilize Qingdao Haier Biomedical Co., Ltd.'s smart blood use solutions and can also enter the medical institutions under INKON Life Technology.

Official information shows that currently, INKON Life Technology's business has covered 160 countries and regions globally, providing intelligent research services, cutting-edge medical technology, and innovative clinical applications through an integrated network of research and development, production, marketing, and service.

However, Qingdao Haier Biomedical Co., Ltd. and INKON Life Technology have not significantly contributed to HAIER SMARTHOME's performance. In 2023, the total revenue was less than 4 billion, of which INKON Life Technology's revenue was 1.471 billion yuan with a net income of 0.1 billion yuan; Qingdao Haier Biomedical Co., Ltd.'s revenue was 2.281 billion yuan with a net income of 0.4 billion yuan.

The addition of Shanghai RAAS will directly double the revenue of the listed platform under INKON Life Technology, but compared to HAIER SMARTHOME, whose revenue has surpassed 260 billion yuan, the revenue of HAIER SMARTHOME's big health sector still seems somewhat insufficient.

However, in the context of weak growth in the current home appliance Industry, the health industry represents a rich mine for Haier, which must be carefully mined to find new areas for future performance growth.

The translation is provided by third-party software.


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