Case Overview: Hangzhou Gongshu District State-owned Investment Group Co., Ltd (‘Gongshu SIC’, AA+) has completed its market transformation through the acquisition of the effective control of A-share listed company Shanghai Runda Medical Technology Co. (‘Runda Medical’), an A-share listed company, through the acquisition of the actual control of Runda Medical.
Investment Purpose: Gongshu Guotou insists on promoting the diversified development of the listed company's business strategy, realising business focus, promoting the improvement of the governance structure and sound operation system of the listed company's own brand, and developing multi-directionally in industrial cooperation, tax landing, management integration, etc., so as to fully release the value of Runda's medical industry chain, enhance the ambience of the regional medical industry, and realise the closed loop of the industry.
Investment model: in August 2019, Gongshu Guotou signed a Share Transfer Agreement with the original shareholders of Runda Medical, which stipulated that the relevant shareholders transferred to Gongshu Guotou an aggregate of 116 million shares of Runda Medical held by them at a price of RMB12.95 per share, at a total price of approximately RMB1.5 billion. After the completion of the acquisition, Gongshu Guotou held a total of 20.02% of the total share capital of Runda Medical, and gained actual control.
Investment effect: Since 2021 Gongshu Guotou completely withdrew from the trading business, medical revenue became the first major source of revenue, and medical revenue accounted for more than 90% of total revenue, with better and stable profitability.2024 In January, Hangzhou Gongshu Guotou successfully issued 24 Gongshu Guotou K1, and obtained RMB 500 million financing.