Gongdong Medical Technology announced that it plans to increase the capital of its wholly owned subsidiary GD Medical with its own funds or self-raised funds of 45 million US dollars to acquire the core assets of Trademark Plastics Inc. ("TPI").

TPI Company was established in 1989. It is mainly engaged in the research and development, manufacturing and sales of polymer disposable medical consumables, medical parts and other products. Up to now, TPI has passed ISO13485 quality management system certification and MedAccred certification. Since its establishment, TPI has produced more than 300 different polymer disposable medical consumables, medical parts and other products for many well-known medical device manufacturers around the world.

However, TPI is still at a loss. In 2021 and the first half of 2022, TPI achieved revenue of US$19.1386 million and US$10.0058 million; net profit was -US$402,400 and US$1.4042 million respectively.

Gongdong Medical Technology intends to purchase all the core assets related to production and operation of TPI Company. Gongdong Medical Technology believes that if the transaction is realized, it will help the layout of overseas production capacity, and complement advantageous resources through industrial synergy with TPI's asset group. It will be able to take advantage of its scale and cost advantages to promote its products in downstream application industries with high cost-effectiveness and share channels and customers with TPI's asset group to enhance the company's overseas regional competitiveness and enhance overseas. Market expansion capabilities, better fulfillment of supply commitments to overseas customers and customer maintenance.

From the perspective of Gongdong's revenue in 2021, overseas sales revenue mainly comes from countries in North America, Asia and Europe. Among them, the sales revenue directly exported to the US market was about 142 million CNY, accounting for about 43% of the sales revenue directly exported to overseas during the same period. In this acquisition, Gongdong Medical Technology also plans to deploy production capacity in the United States and provide localized services for customers in the American market.