JIN MEDICAL INTERNATIONAL LTD. (the "Company" or “JinMed”) (NASDAQ:
ZJYL), a Cayman Islands holding company with Chinese operating
entities that manufacture and develop wheelchairs and living aids
products, today announced that the Company’s variable interest
entity, Changzhou Zhongjin Medical Equipment Co. Ltd., has entered
into an investment agreement (the “Agreement”) with Shanghai Sdoma
Smart Technology Co. (“Sdoma”) to form a joint venture (the “JV”)
dedicated to the production and sales of a range of high-quality
electric wheelchair and mobility scooter products. Sdoma
specializes in research and development, production, and sales of
elderly mobility scooters and daily living aids products under the
brand name “Sdoma”, which is a top-ranked brand in China based on
its online traffic measured by monthly visits to its online store,
according to SYCM.com, an e-commerce analytics platform in China.
On June 28, 2023, JinMed and Sdoma held a formal signing ceremony
at JinMed’s headquarters in Changzhou, China.
Pursuant to the Agreement, the JV will be
established in Shanghai, with an estimated investment amount of up
to RMB50 million in the next three years, 60% of which shall be
contributed by JinMed and the remaining 40% shall be contributed by
Sdoma.
Pursuant to the Agreement, JinMed shall be
responsible for the design and production of the electric
wheelchairs and mobility scooter products, while Sdoma shall be
responsible for the sales of the products, brand marketing, and
overall operation of the JV.
The JV is expected to synthesize the strengths
of JinMed and Sdoma in the electric mobility scooter industry, with
a focus on expanding both companies’ product lines, market
penetration, and sales channels, both online and offline. JinMed
and Sdoma, through the JV, plan to establish more than 30 offline
stores in major cities in China within the next three years.
Mr Erqi Wang, Chairman and CEO of the Company
commented: “The formation of the JV is a significant milestone for
both JinMed and Sdoma. As a mobility scooter product company with
internet business attributes, Sdoma has developed mature internet
marketing system, high marketing efficiency, and has quickly grown
its market share and brand awareness in recent years, leading
strong sales in Chinese market. JinMed has been committed to
innovation and R&D in the field of assistive mobility scooter
products for decades, and has achieved remarkable results in the
upgrade of product quality and brand awareness in the industry over
the years. The JV will further integrate JinMed’s advantages in
electric mobility products and Sdoma’s strengths in online and
offline channels and marketing, so that to enhance the market
penetration of our electric mobility scooter products, and bring
stable growth to our business of daily living aids products.”
“Market analysis have shown an expanding demand
for mobility scooters in
China. ResearchAndMarkets predicts that the electric
mobility scooter market in China will grow at a compound annual
growth rate (CAGR) of over 8% between 2021 and 2026. This growth is
due to an increasing elderly population in China, which is expected
to reach 487 million by 2050, according to the United
Nations. This also shows elderly assistive mobility scooter
market has huge potential and is also one of JinMed’s core business
growth strategies. This cooperation with Sdoma will build a solid
foundation for the Company to rapidly expand our business. We will
work together to explore market opportunities and create greater
value for our customers.”
About Shanghai
Sdoma Smart Technology Co.
Shanghai Sdoma Smart Intelligent Technology Co.
was established in 2015 as a high-tech internet enterprise that
focuses on the research and development, production, sales and
services of elderly mobility scooters and living aids products. It
aims to provide more convenient, safe, and comfortable travel and
lifestyles for the elderly, and is committed to facilitate
intelligent, comfortable, and healthy development of an aging
society. It has core technologies and patents with independent
intellectual property rights, as well as a research and development
team composed of industry experts and an excellent sales and
service team. Sdoma’s products are exported to Europe, as well as
more than 20 countries and regions including the Americas,
Australia, and Asia."
About Jin
Medical International Ltd.
Founded in 2006 and headquartered at Changzhou
City, Jiangsu Province of China, the Company, through its Chinese
operating entities, designs and manufactures wheelchairs and living
aids products for people with disabilities, the elderly, and people
recovering from injuries. The Company’s Chinese operating entities
operate 2 manufacturing plants with approximately 228,257 square
feet in the aggregate in Changzhou City and Taizhou City, Jiangsu
Province, China. The Company’s Chinese operating entities have
established relationships with over 40 distributors in China, and
over 20 in the other regions of the world where it currently sells
the products. The majority of the Company’s wheelchair products,
with more than 30 models, are sold to dealers in Japan and China,
including Nissin Medical Industries Co., Ltd, one of the largest
medical device distributors in Japan. The Company’s Chinese
operating entities own a number of patents with the Patent
Administration Department of the People’s Republic of China and
aims to deliver innovative wheelchair designs that are both
lightweight and ergonomic. For more information, please
visit: http://www.zhjmedical.com.
Forward-Looking Statement
This press release contains forward-looking
statements as defined by the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include statements
concerning plans, objectives, goals, strategies, future events or
performances, and underlying assumptions and other statements that
are other than statements of historical facts. When the Company
uses words such as "may," "will," "intend," "should," "believe,"
"expect," "anticipate," "project," "estimate" or similar
expressions that do not relate solely to historical matters, it is
making forward-looking statements. Forward-looking statements are
not guarantees of future performance and involve risks and
uncertainties that may cause the actual results to differ
materially from the Company's expectations discussed in the
forward-looking statements. These statements are subject to
uncertainties and risks, including, but not limited to, the
following: the Company's ability to achieve its goals and
strategies, the Company's future business development and plans for
future business development, including its financial conditions and
results of operations, product and service demand and acceptance,
reputation and brand, the impact of competition and pricing,
changes in technology, government regulations, fluctuations in
general economic and business conditions, and assumptions
underlying or related to any of the foregoing and other risks
contained in reports filed by the Company with the U.S. Securities
and Exchange Commission ("SEC"). For these reasons, among others,
investors are cautioned not to place undue reliance upon any
forward-looking statements in this press release. Additional
factors are discussed in the Company's filings with the SEC, as
well as its current reports on Form 6-K and other filings, all of
which are available for review at www.sec.gov. The
Company undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that
arise after the date hereof.
For more information, please
contact:
Investor Relations
Wealth Financial Services LLC
Janice Wang
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214
- JIN MEDICAL INTERNATIONAL LTD
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