Ali with huge investment into the second largest shareholder, medical giant Meiyin health straight up and down

On October 27, The Company's controlling shareholder, Shanghai Tianyu Asset Management Co., Ltd., and its co-acting partners and other shareholders, respectively, with Alibaba (China) Network Technology Co., Ltd("Ali Network"), Hangzhou Xintou Information Technology Co., Ltd("Hangzhou Xintou"), and Shanghai Yi Investment Center ("Hangzhou") Limited Partnership) ("Shanghai Yu") signed the "Share Transfer Agreement" to which it intends to transfer 209 million shares, 196 million shares and 200 million shares of the listed company, respectively, totalling 605 million shares, or about 16.16% of the company's total share capitalof the 16.16 per cent of the total transferred shares, the three companies will account for 5.58 per cent, 5.25 per cent and 5.34 per cent of the total equity of Meiyin Health, respectivelyAccording to the announcement, the transfer price is 12.01 yuan / share, based on this calculation, Ali Network, Hangzhou Xintou, Shanghai Yu to be granted the above-mentioned shares to pay the consideration of 2.510 billion yuan, 2.354 billion yuan, 2.401 billion yuan, respectivelybecause Ali Network holds 57.52 percent of Hangzhou Xintou's shares, the two form a consistent action relationship, holding a total of 10.82 percent, becoming the second largest shareholder in Meinian Healthit is worth mentioning that although Shanghai Yu has no concerted action relationship with Ali Network and Hangzhou Xintou, it is still closely related to the Ali departmentShanghai's partners include the Shanghai Yunfeng New Equity Investment Management Center and Shanghai Yunfeng Yantai Investment Center, which holds 2.44 per cent and 97.56 per cent of shares respectively, and Yunfeng's close relationship with Alibaba founder Jack MaAs a limited partner, Ali Network stakes 36.36% of Shanghai's sharessinaalso noted that Ali's stake in U.SHealth could be further expandedOn September 11 this year, Meinian Health obtained the approval of the CSRC to issue no more than 749 million new shares, raising no more than 2,046 million yuan, Ali Network has applied to participate in the subscription of the non-public offering, but the results of the issue has yet to be finalizedcurrently, the completion of the agreement will not result in a change in the controlling shareholder stake and actual controller of Meinian HealthTianbillion's assets hold 6.31% of the shares of Meiyin Health, still the controlling shareholder of the listed company, and Yu Fu and its concerted action person hold 22.88 percent of Meinian Health's total share capital, and remain the actual controller of the listed companyFigure 1: Transfer of ownership before and after the change of equity
Figure 2: After the transfer of shares after the equity structure of listed companies sources: The United States Health Announcement for the Ali strategy to participate in the stock, The United States Health said, Ali Network, Hangzhou Xintou and Shanghai Yu as an important strategic shareholders and partners of the company, can help the United States health and high-quality to enhance the digital, intelligent development level of enterprises, build a collaborative and innovative technology platform for the company's long-term health and development support as China's leading preventive medicine leader, Meiyin Health was founded in 1991, May 18, 2005 listed on the A-share At present, the company has "American Health", "Tzu Ming medical examination", "ChiMing Oa", "American Zhao medical examination" and other medical examination brands, as of June 30, 2019, the United States Health in 311 cities completed or under construction 684 medical examination institutions but because of aggressive horse-stables, Meinian Health is now facing a test of profitability and financial ability The third-quarter report released late On October 24th showed that U.S health revenue for the first three quarters was RMB6.278 billion, up 7.89 percent YoY, net income was RMB391 million, down 5.46 percent YoY, and basic earnings per share were RMB0.1, down 23.08 percent YoY in addition to a decline in net profit, the u.S health operating activities generated a net cash flow also fell At the end of the third quarter, the net cash flow from health operating activities in the United States was -659 million yuan, a decline of 865.47%, of which the net cash flow from the company's operating activities in the third quarter was -559.58 million yuan, a decline of 114.27% , however, did not hinder the outside world's optimism about the "marriage" At the start of trading on October 28th, American Health's shares surged, rising 9.9 per cent to Rmb14.97 a share CICC said it would raise its target price by 6.3 percent to 17 yuan, taking into account the positive impact of Ali's strategic stake on the health of the U.S Zhang Wei, an analyst at the company, said in the latest research report that after the transfer of equity from Meinian Health to Ali and others, the company's personal medical examination transformation strategy in recent years is expected to be able to break through with the flow of The Ali system won the two medical giants in a year
before the health of the United States, another large private medical examination giant Aikang Guobin has been Ali's income March 26, 2018, Yunfeng Fund joined forces with Alibaba Group and Boyu Capital, as well as Mr Zhang Ligang, Founder, Chairman and Chief Executive Officer of Aikang Group, and Mr He Boquan, Vice Chairman of Aikang Group, to form a consortium of buyers to sign a merger agreement to privatize the listed company at $41.20 per common share or $20.60 per U.S Depositary stock On January 18, 2019, Aikang Guobin announced the completion of the privatization, and the outside shareholders of the buyer's group included Yunfeng Fund, Ali Line and Boyu Capital, Suning Tesco After the privatisation of the , Ali-controlled Taobao China Holdings and Treasure Cottage Limited indirectly held a 23.8 per cent stake in Aikang Suning Tesco has an indirect 3.4 per cent stake in the fund, boyu capital has a 13 per cent stake, and Yunfeng Fund (excluding Suning) will have an indirect stake of 35.8 per cent, making it the largest shareholder in Aikang Guobin (see Sina Pharmaceutical report: Aikang Guobin completed the acquisition financing Ali, Suning billion plus holding) when Alibaba said that consumer medical care is one of the main business of Ali Health, medical examination is the main area of consumer medical care; In the future, the two sides will cooperate in depth in the fields of medical examination members' operation, online and offline omnichannel service exploration, and artificial intelligence diagnosis and prediction of diseases in fact, before Ali privatized Aikang, the relationship between the two countries was once very delicate in the battle for a "medical check-up" (see Sina Pharmaceutical Report: Dust settles!) Aikang Guobin announced the completion of privatization) and with Ali's participation in the privatization of Aikang State Bin, this time spent 4.874 billion yuan to become the second largest shareholder in U.S Health, but also for the two sides over the years of several fights an industry insider told Sina Pharmaceutical, medical health has been one of Ali's key layout areas, than before more concentrated in the online layout, one shot to win two major medical examination giants, access to a large number of offline health data, will make Ali's layout will be more complete.