Listed on the Shanghai Stock Exchange since 1996, TC Medical provides medical services such as dental services. Committed to becoming a leading comprehensive medical platform in China, the company currently owns a number of oral medical and reproductive health care institutions.
TC Medical (Chinese: 通策医疗, SH:600763) announced that the company planed to acquire Heren Technology (Chinese: 和仁科技, SHE:300550) in cash, with a total transaction value of CNY 769 million (USD 114 Million) on 15th, May. TC Medical will hold 29.75% of the shares of Heren Technology and become its largest shareholder once the transaction is completed.
According to the Q1 report of TC Medical, as of the end of March 2022, the total amount of TC Medical’s book monetary fund was CNY 734 million, CNY 35 million less than the total acquisition price.
In 2021, TC Medical achieved revenue of CNY 2.781 billion and a net profit attributable of CNY 703 million. Meanwhile, Haren Technology achieved revenue of 464 million and a net profit attributable of CNY 35 million. In the first quarter of this year, TC Medical achieved revenue of CNY 655 million and a net profit attributable of CNY 166 million.
According to public information, TC Medical has opened nearly 30 dental hospitals across the country and is one of the chain dental medical institutions in China. The potential inclusion of dental products in the VBP (Volume-based Procurement) policy has raised concerns in the market since last year, since the mandatory steep price cut may lead to huge profit loss. The market value of TC Medical has plunged 68%.
Heren Technology is one of the earliest domestic product service providers in the clinical medical informatization field. It has a comprehensive solution for the medical information system.
As of today’s trading, the stock price of TC Medical opened high and traded lower, falling all the way down, the company’s price was once nosedived to the down limit today and closed at CNY 127.37 apiece. On the other hand, the Heren Technology shares opened 14% higher this morning and then dipped, closing at CNY 11.02 per share.