According to Frost Sullivan, China's market for assisted reproductive services grew at a compound annual rate of 15.8 per cent between 2014 and 2018, with a market size of 25.2 billion yuan by 2018. However, in 2018, China's assisted reproductive penetration rate was only 7.0%, far lower than the 30.2% penetration rate in the United States in the same period, and there is broad room for development. In the face of huge domestic market demand, Hong Kong main board listed company Huanya International Medical Technology Group Limited (01143.HK) ("Huanya International Medical Group") issued a notice on July 8, 2021, signing a memorandum of strategic investment and cooperation with Lux Aeterna Capital Limited ("Lux Capital") to carry out in-depth cooperation in the field of assisted reproduction. According to the MOU, Lux Capital intends to invest / cooperate with Huanya International Medical Group with a scale of HK $300 million.
Huanya International Medical Group has been included in the MSCI index, continuously increasing its capital.
Headquartered in Hong Kong, China, Huanya International Medical Group plans to reserve assisted reproductive medical technology through cooperation with the world's leading experts and institutions in assisted reproductive medicine, while linking with laboratories, outpatient clinics, hospitals and other medical institutions at home and abroad. to provide systematic solutions to customers who need to improve fertility quality. In the first half of 2021, we have signed investment memoranda with Nanjing Jilang Biotechnology and Nuoyi Ke, and set up a joint venture with Han Guang Yunke to acquire Aidin eugenics and sign terms and conditions for possible acquisitions.
This series of strategic actions arouse the favor of capital. In May this year, Huanya International Medical Group was officially included in the MSCI Hong Kong Micro-share Index compiled by Mingsheng, a well-known international index compilation company, indicating that international capital is optimistic about the development prospects of the enterprise. At the end of June, the company completed the placement of new shares, raising a net capital of about HK $22.21 million, which is intended to be used for the development of assisted reproductive medical technology business and general working capital, to enhance profitability and operational stability, and to achieve the sustainable development of the company. Successive benefits have played a positive role in vigorously developing the business of assisted reproductive medical technology and seizing strategic opportunities for Huanya International Medical Group.
Lux Capital, a professional asset management agency, focuses on investing in high-quality assets at home and abroad.
According to public data, Lux Capital, which signed a memorandum of strategic investment and cooperation with Huanya International Medical Group, is a multi-asset investment company rooted in Greater China, a licensed entity under the supervision of the Hong Kong Securities and Futures Commission, and a professional asset management agency, focusing on credit investment, equity management, family office operation, Pre-IPO project layout and other areas. With stable returns and excess returns, excellent credit enhancement, diversified and highly liquid investment portfolio in the industry.
Lux Capital currently manages / proposes assets of approximately HK $3 billion. The core management team from Morgan Stanley, Deutsche Bank and Goldman Sachs Group Group has rich experience in global investment and asset management, providing strong professional support for its investment and asset management business.
The "three-child" policy promotes the hundreds of billions of assisted reproductive market, and the two sides work together for in-depth layout.
In recent years, infertility and assisted reproduction have attracted much attention from the society. According to a report published online in the international medical journal the Lancet, the infertility rate in China has risen from 12% in 2007 to about 18% in 2020. According to the report of China Economic Weekly, there are more than 200000 IVF babies in China every year, making it the largest country in assisted reproductive technology therapy in the world. With the continuous improvement of public awareness and ability to pay for assisted reproduction, the market of assisted reproductive services in China has maintained rapid growth.
In the major strategic opportunity period of China's transformation from a populous country to a human capital power, with the implementation of the "three children" policy, assisted reproduction obviously conforms to the national policy and will usher in broad prospects for development. Huanya International Medical Group has an in-depth layout of the assisted reproductive blue sea track and is speeding up the pace of market operation; Lux Capital has strong financial strength and rich experience in investment and asset management. The market predicts that once this strategic investment and in-depth cooperation is implemented, it will promote the accelerated development of the assisted reproductive business of Huanya International Medical Group, and then improve the financial performance.