Bei Jing Shang Bao·2025-12-14 10:32Core Viewpoint - Haohai Biology has acquired a 19.8% stake in Jiangxi Ruiji Biological Engineering Technology Co., Ltd. for 38.35 million yuan, aiming to enter the high-value medical device sector of biological amniotic membranes, despite Ruiji's ongoing financial struggles and lack of performance guarantees in the transaction [1][4]. Group 1: Acquisition Details - The acquisition involves Haohai Biology purchasing 8.4661 million shares of Ruiji, which has been facing financial difficulties with losses of 11.77 million yuan in 2024 and 11.29 million yuan in the first nine months of 2025 [1][3]. - The transaction does not include any performance commitments or earn-out arrangements, posing a risk of investment loss if Ruiji's performance declines further [4]. Group 2: Haohai Biology's Business Context - Haohai Biology, the first biopharmaceutical company listed on both the Hong Kong Stock Exchange and the Sci-Tech Innovation Board, has seen a decline in its core business, with revenue and net profit dropping by 7.12% and 10.29% respectively in the first half of 2025 [1][6]. - The company reported a revenue of 2.698 billion yuan and a net profit of 420 million yuan in 2024, but growth has stagnated, with significant declines in its medical aesthetics, ophthalmology, and orthopedics segments [6][7]. Group 3: Market Potential and Competition - The global amniotic membrane market is projected to grow from 1.89 billion USD in 2024 to 3.97 billion USD by 2034, with a compound annual growth rate of approximately 7.7% [8]. - Competition in the biological amniotic membrane sector is intensifying, with other companies like Guangzhou Ruitai Biological and Chengdu Qingshan Likang Pharmaceutical also entering the market [9].