Zhongjin Medical International Co., Ltd. ("Company" or "Zhongjin") (Nasdaq: ZJYL), a Cayman Islands holding company that manufactures and develops wheelchairs and life aids through Chinese operating entities, announces that Changzhou Zhongjin Medical equipment Co., Ltd., the company's variable interest entity, has signed an investment agreement ("agreement") with Shanghai Stuma Intelligent Technology Co., Ltd. ("Sdoma"). To set up a joint venture ("JV") specializing in the production and sale of a range of high-quality electric wheelchairs and mobile walking products. Sdoma focuses on the research, development, production and sales of elderly scooters and auxiliary products for daily life, and its brand "Sdoma" ranks first in terms of monthly visits to online stores according to Chinese e-commerce analysis platform SYCM.com. On June 28, 2023, Zhongjin and Sdoma held a formal signing ceremony at Zhongjin headquarters in Changzhou, China.

According to the agreement, the joint venture will be set up in Shanghai and the investment is expected to be as high as 50 million yuan in the next three years, of which 60 per cent will be invested by China Investment and the remaining 40 per cent will be invested by Sdoma.

Under the agreement, Zhongjin will be responsible for the design and production of electric wheelchairs and mobile transport products, while Sdoma will be responsible for product sales, brand marketing and the overall operation of the joint venture.

The joint venture will integrate the respective advantages of Zhongjin and Stumar in the electric scooter industry, focusing on expanding the joint venture's product line and market penetration. The purpose of the cooperation is to upgrade the sales network of electric transportation products and enhance the scale of online and offline sales channels. In addition to opening up agency channels, the future joint venture company will plan to set up offline monopoly stores to combine product display, sales and door-to-door services to further enhance the influence of the brand and provide customers with a convenient consumer experience. At the same time, the joint venture company will build an online and network-wide marketing system and build more than 30 offline stores in major cities in the next three years.

Mr. Wang Erqi, Chairman and CEO of the company, commented: "the establishment of the joint venture company is an important milestone for both China Jin and Stumar. As a substitute product company with the attribute of Internet business, Stuma has a perfect product Internet marketing system, the product marketing efficiency is high, and the product market share has increased rapidly in recent years. China's market sales and brand awareness are among the best. Zhongjin has been committed to product innovation and research and development for decades, and has made remarkable achievements in the industry in terms of product quality and brand image. The joint venture company will further integrate the performance advantages of Zhongjin electric transportation products with Stuma's online and offline channel advantages and market promotion advantages, enhance the market penetration of electric transportation products, and bring steady growth of life support products business. "

"Market analysis shows that China's demand for scooters is expanding. ResearchAndMarkets predicts that China's electric scooter market will grow at a compound annual growth rate of more than 8 per cent (CAGR) from 2021 to 2026. This growth is due to the growing elderly population in China, which is expected to reach 487 million by 2050, according to the United Nations. The market prospect of the elderly travel aid products is broad, and it is also one of the directions of the company's future business strategy. This cooperation with Stumar will also lay a solid foundation for the rapid expansion of our business. We will explore market opportunities together to create greater value for our customers. "

About Shanghai Stuma Intelligent Technology Co., Ltd.

Shanghai Stuma Intelligent Technology Co., Ltd., founded in 2015, is a high-tech Internet enterprise specializing in the research, development, production and sales of elderly scooters and life aids. The company aims to provide more convenient, safe and comfortable travel and lifestyle for the elderly, and is committed to promoting the intelligent, comfortable and healthy development of the aging society. The company has the core technology and patents of independent intellectual property rights, as well as a research and development team composed of industry senior experts and excellent sales and service team. The products are mainly exported to Europe. There are more than 20 countries and regions in America, Australia, Asia and so on.

关于半岛体育app国际有限公司

Founded in 2006, Zhongjin is headquartered in Changzhou City, Jiangsu Province, China. Through its Chinese operating entity, the company designs and manufactures wheelchairs and life aids for people with disabilities, the elderly and ex-patients. The company's China operating entity has two production bases in Changzhou and Taizhou, Jiangsu Province, covering a total area of about 228257 square feet. At present, the operating entity of the company has established cooperative relations with more than 40 dealers in China and more than 20 distributors in other parts of the world. Its wheelchair products have more than 30 models, most of which are sold to Japan and China through distributors, including Rijin Medical device Co., Ltd., one of the larger medical device distributors in Japan. Zhongjin China operating entity has 106 patents and is applying for 22 patents with the China Patent Administration, while continuously launching lightweight and ergonomic innovative wheelchair design products every year.