Shineco Inc. (NASDAQ: SISI), a U.S.-based company, has signed an investment agreement with Beijing Dongfang Meitong Technology Co., Ltd, a China-headquartered “Internet+medical care” platform. Shineco is set to acquire an 80% stake in Meitong Tech for USD 20 million.
Meitong Tech, a leading shared medical device company in China, offers “Offline shared devices+online remote operation” services through its platform, providing patients’ family members with a range of shared medical equipment, including wheelchairs, companion beds, transfer beds, and power bank platforms. The company has partnerships with over 800 hospitals across China and has more than 10,000 devices in the market.
The two companies plan to leverage their long-term operational data on the elderly and people with mobility difficulties for precise market analysis and product development. They aim to provide one-stop solutions in medical devices, healthy meals, rehabilitation care, and other areas to better meet market demand and enhance customer satisfaction and loyalty. Shineco will also utilize Meitong Tech’s extensive channel resources in China to accelerate its expansion in domestic and international markets, increasing its market penetration rate and international influence.
According to the investment agreement, if Meitong Tech achieves a certain level of net profit growth and secures at least two core technology patents within three years post-investment (2025, 2026, 2027), Shineco will reward its management team with a cash bonus of up to 1% of the investment amount.- Flcube.com
