On June 29, Jianjian (Guilin) Latex Products Co., Ltd. held an unveiling and ribbon-cutting ceremony, announcing the company's official name change. On June 6, Robust Medical signed a transfer contract to acquire 100% equity of Guilin Zizhu Latex Products Co., Ltd.(hereinafter referred to as "Guilin Latex"). This acquisition fills the gap in Robust Medical's latex product line and helps Robust Medical become One of the companies with the most comprehensive product lines of low-value medical consumables in China.

"China's famous brands" join prudent medical care

According to an announcement issued by Steady Medical, on April 28, China Resources Zizhu Pharmaceutical Co., Ltd. publicly listed on the Shenzhen United Equity Exchange to transfer its 100% equity stake in Guilin Latex. In order to expand business channels and improve its strategic layout, Steady Medical won the bid after participating in online bidding on June 1, and finally acquired Guilin Latex with its own funds of RMB 450 million.

Guilin Latex is mainly engaged in the research and development, production and sales of latex products such as medical latex surgical gloves, medical examination gloves, and condoms. In 1966, Guilin Latex was invested and built by the former Ministry of Chemical Industry. It was a designated production enterprise by the former National Family Planning Commission, a supplier of condom products to the United Nations Population Fund, and a chairman unit of the China Latex Industry Association. In November 2012, the state-owned property rights of Guilin Latex Factory were transferred as a whole and entered China Resources Zizhu Pharmaceutical Group's China Resources Pharmaceutical Group.

Guilin Latex has been deeply engaged in professional fields for many years and has obtained qualifications such as "Guangxi Zhuang Autonomous Region Recognized Enterprise Technology Center","High-tech Enterprise","Guangxi Innovative Enterprise" and "Guangxi Medical Rubber Engineering Technology Research Center". It has 11 medical device registration certificates and 35 patent certificates of various types, including 13 invention patents.

In addition, Guilin Latex has a wide range of medical product channels and high popularity. Among them, Gaobang Rubber Condoms were awarded the title of "China Famous Brand" in 2007, and are also a supplier of condoms and medical gloves to the United Nations Population Fund; the three main products "Gaobang Disposable Rubber Sterilization Surgical Gloves, Gaobang Disposable Medical Rubber Inspection Gloves and Gaobang Rubber Condoms" have also been rated as "Guangxi Famous Brand" products by the Guangxi Administration of Quality Supervision. In 2021, Guilin Latex achieved sales revenue of approximately RMB 320 million and net profit of approximately RMB 50.85 million. Its business covers domestic hospitals, pharmacies, e-commerce and foreign trade markets, of which domestic sales accounted for approximately 90%, and medical latex surgical gloves accounted for approximately 55%.

"Strong alliance" has a long history

Steady Medical has always adhered to the strategy of building a one-stop solution for medical consumables. The two parties in this acquisition are highly compatible. At the unveiling ceremony, Li Jianquan, chairman of Jingjian Medical, said that he had a long history with Guilin Latex. It turned out that as early as 37 years ago, when Li Jianquan was still doing foreign trade business in Hubei, he had cooperated with the then Guilin Latex Factory to sell latex gloves abroad. Li Jianquan said,"With deep feelings for the former Guilin Latex Factory, I unswervingly led Kang Jian Medical to participate in this restructuring of Guilin Latex, bringing Guilin Latex, an excellent enterprise with a legendary and glorious history, to us."

Li Jianquan believes that this is a process of "strong alliance". The advantages of the two in customers, markets, products, R & D and production are conducive to the formation of scale and synergy. At the same time, the addition of Guilin Latex has completed Solid Medical's medical consumables product line. Solid Medical has become an "all-round""one-stop" solution provider for medical consumables, and will also empower Guilin Latex. He revealed that in the future, he will vigorously promote Guilin latex technology research and development, intelligent manufacturing, product promotion, packaging design and innovation and efficiency creation. Promote the overall relocation and transformation of enterprises with high quality when conditions are ripe.

Wang Xin, deputy mayor of Guilin City People's Government, said that the rubber and latex industry is a key industry in Guilin's industry. The official unveiling of Jianjian (Guilin) Latex Products Co., Ltd. has brought new opportunities to the development of Guilin City's latex industry. Guilin City will provide efficient, thoughtful and high-quality services, achieve mutual benefit and win-win results with sound medical care, and contribute to the development of Guangxi's latex industry.

The brand and quality of Guilin Latex are recognized by hospitals across the country, and are highly complementary to Steady Medical in domestic hospitals and consumer channels. Yin Wenling, the legal representative of Jianjian (Guilin) Latex Products Co., Ltd., said that the merger is based on the "like-minded" of both parties. The unveiling of Jianjian (Guilin) Latex Products Co., Ltd. marks that Guilin Latex Factory has entered a new stage of development and also marks Jianjian Medical New breakthroughs in the field of latex medical device products and daily necessities. Yin Wenling introduced that the next priority is to expand production capacity and increase value, and build an efficient and leading intelligent manufacturing factory. At the same time, we must also enhance the combined advantages of brands, channels and products. On the other hand, we responded to the call of the Guilin City government to build a new green, smart and garden-style factory.

On the occasion of the launch of the new company, Tao Ran, general manager of Guilin Latex, said that Guilin Latex Factory has been established for more than 50 years and has a profound heritage."Joining the big family of sound medical care this time can be said to be a complementary advantage in a strategic sense. We are very much looking forward to it. In the next few days, we can reach a new level together!" Lin Nianhua, an employee of Guilin Latex, believes that the acquisition of Steady Medical has brought a new look to Guilin Latex."It can be expected that Guilin Latex, standing at a new starting point, will show users a new look in the future."

Achieve strategic layout through mergers and acquisitions

Steady Medical has always been digging a deep hole in the "moat" around the scope of its own medical products, and continues to work step by step with upstream and downstream related parties in its own industry. With the acquisition of Guilin Latex, Steady Medical not only effectively fills the gap in its own products in related fields, but also increases the company's "depth" in the dressing product line, improving the strategic layout related to medical products from multiple dimensions.

It can be said that steady medical care continues to expand deeper into the field of medical consumables in which it is good, and this merger has once again highlighted the background of "specialization, specialization, innovation". Steady Healthcare adheres to its industry-oriented approach and attaches great importance to and values the technological innovation and R & D capabilities of invested companies, especially product innovation capabilities, in order to create greater value for users and society. While the company has achieved a leading role in driving industrial development, it has also continued to contribute to the development of the local economy.