Domestic energy tycoons are going to cross the border into the medical industry

Eight poles can not hit a domestic energy giant enterprises, determined to cross the border to the medical device industry.
, Shanghai Electric Group Co., Ltd. ("Shanghai Electric") officially announced the establishment of a $1.6 billion medical device merger and acquisition fund with established private equity firm Yongyong.
Shanghai Electric announced that with its own capital of 200 million yuan and Shanghai United Ventures Yongyong Equity Investment Management Co., Ltd. ("Shanghai United Ventures Yongyong") jointly launched the Zhejiang United Ventures Yongyong Medical Fund, the total size of the fund of 1.6 billion yuan, officially established on June 1, 2018, mainly invested in medical equipment, equipment, including but not limited to in-body diagnostics, radiology, medical imaging, ultrasound equipment, medical robots, medical services, rehabilitation, home medical equipment.
According to the announcement, Zhejiang Union Yongxuan Medical Fund has a total size of 1.6 billion yuan, Shanghai Electric has contributed 200 million yuan, and other investors include Chinese The Government Guidance Fund established by The Insurance Company, Shanghai Port, Zhejiang Province and Zhuji City, as well as domestic investment institutions such as Lide Financial Group.
Shanghai Electric announced that the medical fund will be mainly in the medical device industry strategic layout, to find, screen, train the industry's high-quality mergers and acquisitions, and help the target enterprises to achieve effective integration of resources to further enhance performance.
Is a state-controlled enterprise owned by the State-owned Enterprise of shanghai SASAC, the company's main business is to provide a variety of power generation equipment and elevators, electrical equipment and services. With the medical device industry, Shanghai Electric used to be described as "eight rods can not hit."
last fall, Shanghai Electric announced the proposed investment information. Now, the boots are sure to hit the ground.
, one foot to step forward, should be optimistic about the development prospects of the medical device industry.
2017 annual report of Shanghai Electric, the company achieved operating income of 79.544 billion yuan in 2017 and net profit of 2.66 billion yuan. It's a big company with an annual revenue of $80 billion.
, however, Shanghai Electric failed to meet its revenue growth target last year from a year earlier, with annual revenue down 10.13 percent from the same period in 2016.
shanghai Electric has four major business sectors, with the exception of the industrial equipment sector (elevators, etc.), the other three business sectors in the revenue decline last year. Last year, new orders also fell 17.8 percent from the same period in 2016.
main reason for the decline in revenue, Shanghai Electric said, because of macro-policy, coal-fired power generation and its ancillary business operating income decreased significantly year-on-year.
addition, in 2017, the cash flow from Shanghai Electric's operating activities also plummeted to -7.5 billion yuan, mainly due to insufficient market liquidity and more difficult collection, resulting in a decrease in working capital income.
the external situation is grim, the main business growth is blocked, Shanghai Electric will look to the prospects of the more promising medical device industry, it is not surprising.
its first move was to participate in mergers and acquisitions and share dividends in the medical device industry, but in the future, it may not rule out the possibility of more substantial action by the company. Note that Shanghai Electric's official statement is to "promote the strategic layout of the medical device industry", that should not be just a play, is to cultivate a new industry.
Shanghai Electric's partner this time is Shanghai's established private equity joint venture, Shanghai joint venture Yongxuan four years ago has taken the initiative to transform and develop mergers and acquisitions funds, focusing on health care, intelligent manufacturing, new materials, civil-military integration, new economy and other industries, especially optimistic about the growth rate of 20% of China's medical device industry.
, it remains to be seen where Shanghai Electric will come from hand-in-hand with the old private equity. (Pharmaceutical Network)