JIN MEDICAL INTERNATIONAL LTD. Announces Joint Venture with Shanghai Sdoma Smart Technology Co.
Changzhou City, China, June 29, 2023 (GLOBE NEWSWIRE) -- 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: [email protected]
Phone: +86 13811768599
+1 628 283 9214
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