KHB acquired the agency of Hitachi in four southern provinces

        August 29, 2017, the 6th meeting of the 7th Board of Directors reviewed and approved the proposal that KHB's wholly owned subsidiary Shanghai Keshang Medical Instrument Co., Ltd. invest 153 million yuan to acquire 55% stakes of Guangdong Xinyou.

        Guangdong Xinyou owned the primary-level right of agency of Hitachi in Guangdong, Guangxi, Hunan and Hainan, maintaining about 1,000 sets of Hitachi terminal biochemical instruments. Upon the completion of the acquisition, the company will achieve the cooperation between its self-produced biochemical reagents and the international instrument platform. And with the help of Guangdong Xinyou's competence in the biochemical diagnostic market of the four provinces of South China, the company could further expand its market share in the biochemical diagnostic market of South China, especially in the middle and high-end market, to consolidate its leading position in the IVD industry.

       The acquisition would meet the company's "product-centered and customer-oriented" concept of development, fit with its strategic layout of biochemical product lines, and shall contribute to achieve long-term stable growth of KHB's business in biochemical products. The company will further carry forth the "reagent + instrument" development strategy, continue to improve its production quality of biochemical reagents, promote the sales of the supporting biochemical reagents, and thereby further enhance its business scale and profitability.

        Upon the acquisition, Guangdong Xinyou will become a subsidiary of KHB within the range of its consolidated financial statements. Based on the performance commitment, it is expected to achieve sales of at least 195 million, 220 million and 250 million yuan in 2018 - 2020, net profit being 26.13 million, 31.94 million, and 38.16 million yuan. Meanwhile, it'd lift at least 20 million, 25 million and 30 million yuan of sales revenue with Kehua's self-produced products respectively in the next three years.

       Tomorrow, the company will continue to increase its investment and construction of channels, actively arrange the high-quality channel resources, quickly command the end markets by means of investment and holding, fully exert its product and brand advantages, explore new markets and raise the market share of Kehua's self-produced and agent products.