en.Wedoany.com Reported - Wuzhou Medical (Anhui Hongyu Wuzhou Medical Devices Co., Ltd.) issued an announcement stating that it is planning to acquire a controlling stake in Xuanzhi Electronic Technology (Shanghai) Co., Ltd. through a combination of share issuance and cash payment. If the transaction is completed, the company will form a dual business structure with both medical devices and semiconductors.
According to the announcement, Wuzhou Medical has signed an equity acquisition letter of intent with the counterparty Liu Gang and other interested shareholders, but details such as the transaction price, equity acquisition ratio, and supporting financing arrangements have not yet been finalized. To stabilize the secondary market stock price and prevent volatility risks from major information leaks, the company's shares have been suspended from trading since July 8. The company plans to fully disclose the transaction plan within 10 trading days, no later than July 22.
Xuanzhi Technology was established on November 24, 2014, with a registered capital of RMB 43,048,424. The legal representative is Liu Gang. Its main business covers electronic technology, semiconductor technology development, integrated circuit research and development, and related technical services and import/export. The company's business is entirely separate from Wuzhou Medical's main business of disposable sterile infusion medical devices, making this acquisition a cross-industry expansion. Wuzhou Medical stated that the transaction is still in the planning stage and involves significant uncertainty.
Wuzhou Medical has been listed on the ChiNext board for only four years, and its traditional medical consumables business has seen sluggish growth. In 2022, the year of its listing, revenue and net profit reached a cyclical peak, but have since declined year by year. From 2022 to 2025, revenue was RMB 547 million, RMB 534 million, RMB 477 million, and RMB 458 million, respectively; net profit attributable to the parent company was RMB 70.9305 million, RMB 60.2651 million, RMB 39.9698 million, and RMB 18.893 million, respectively.
The company's main products include syringes, infusion and transfusion sets, medical puncture needles, and other diagnostic and clinical care products. In 2025, revenue from syringes and puncture needles decreased by 11.16% and 20.15% year-on-year, respectively; revenue from infusion and transfusion sets and other products increased by 41.73% and 10.82% year-on-year, respectively. Wuzhou Medical has long relied on an ODM model to serve overseas medical device brands. In 2025, overseas revenue reached RMB 442 million, accounting for 96.5% of total revenue. Affected by weak overseas market demand and product price reductions, export revenue declined by 4.5% year-on-year. The domestic market size in China was only RMB 16.5929 million. Although it grew slightly year-on-year, the scale is too small to offset the contraction pressure from the overseas business.
In its 2025 annual report, Wuzhou Medical attributed the performance decline to intensified industry competition, product price reductions due to changes in end-market demand, and large exchange losses from exchange rate fluctuations, with rising financial expenses further squeezing profit margins. In the first quarter of 2026, the company achieved operating revenue of approximately RMB 101 million, a year-on-year decrease of 3.33%; net profit attributable to the parent company was approximately RMB 8.051 million, a year-on-year increase of 42.89%.
