Sino-Singapore Jingwei, November 8th (Wang Yuling) An acquisition announcement made the collective memory of "post-90s" "Better Back and Back" stand in the spotlight again.
On the evening of the 7th, Corfu Medical announced that it plans to acquire 100% of Acorn Trading (Shanghai) Co., Ltd. (hereinafter referred to as Acorn Trading) for no more than 177 million yuan. It is currently in the planning stage and the specific transaction plan is to be further determined.
"TV shopping giant" sells core business
Public information shows that Acorn Trading is a wholly-owned subsidiary of China DRTV, Inc. (hereinafter referred to as "DRTV", registered in the British Virgin Islands). It mainly operates babaka posture correction, shaping, massage, Physiotherapy products.
Sino-Singapore Jingwei found that DRTV is a wholly-owned subsidiary of Acorn International, Inc. (namely, Acorn International).
According to Tianyancha information, Acorn International was founded in 1998 and was once known as a "television shopping giant". It is a cross-media, multi-platform integrated marketing company.
According to Acorn International's official website, it includes three major brands: Backbone, Acorn Fresh and Purely.
Corfu Medical aims at the core products of Acorn International.
According to the announcement, after preliminary negotiations, DRTV will integrate all the stores related to Beibeijia's business in its affiliates, and divest all assets, creditors' rights and debts that are not related to Beibeijia's business in Acorn Trading.
After the reorganization is completed, the company will acquire 100% equity of Acorn Trading and the intellectual property rights related to Beibeijia in its affiliated companies.
According to the aggregated data from the Tmall backend and Jingdong backend of related stores of Beibeijia, the sales (including tax) of Beibeijia in the last three years were 176 million yuan, 266 million yuan, and 215 million yuan, respectively. The sales from January to October 2021 Sales (including tax) are approximately 141 million yuan.
It is worth noting that, according to the annual report submitted by Acorn International as of December 31, 2019, the sales of Beibeijia’s product line accounted for 90.5%, 92.5% and 89.8% of the total revenue in 2017, 2018 and 2019, respectively. Fruit International’s main source of sales.
The sale of Beibeijia's product line may mark the acceleration of Acorn International's settlement process.
According to the announcement, Acorn International began liquidating non-core assets in 2017, sold majority shares in the OZing business to third-party investors and operators, closed the call center in 2019, and sold Zhuhai Acorn Electronic Technology Limited company and other assets.
What is the buyer?
Public information shows that Corfu Medical was founded in 2009 and has now developed into a group enterprise integrating R&D, manufacturing, sales and service of medical devices.
At present, it mainly develops and produces products such as medical consumables and dressings, physical therapy and rehabilitation equipment.
According to the announcement, Corfu Medical’s acquisition of Bubeijia is to further improve its rehabilitation product categories.
Corfu Medical’s existing product categories include a number of medical rehabilitation products such as neck and waist rehabilitation, leg orthopedics, physiotherapy massage, etc. The company plans to use Backcare as a sub-brand of rehabilitation assistive products to create a medical technology-based Posture correction, shaping, physical therapy and wearable medical monitoring products.
In addition to good shots, Corfu Medical also announced on the same day that it intends to acquire 54.05% of Jirui Medical for 50,270,200 yuan.
The acquisition logic of "perfect rehabilitation products" is also reflected in Corfu Medical's acquisition of Jirui Medical Devices.
Jirui Medical is a supplier of Kefu's medical rehabilitation products. In 2020, Kefu's total purchases from Jirui Medical are 19.96 million yuan, accounting for 19.37% of Jirui's sales.
In the early stage of the epidemic, related anti-epidemic products such as infrared thermometers and masks produced by Corfu Medical brought significant growth in main business income.
With the gradual balance of supply and demand of products such as infrared thermometers and masks, and even oversupply, the sales revenue of Corfu Medical has fallen. From January to June 2021, it will realize a net profit of 216 million yuan attributable to the owners' equity of the parent company, a year-on-year decrease of 20.97%.
In the post-epidemic era, can the above two acquisitions bring new revenue and profit growth points to Corfu Medical?
It still needs time to verify.
At the close of the market on November 8, Corfu Medical's price per share was 82.92 yuan, down 3.62%.
(Zhongxin Jingwei APP)
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