Tencent Holdings is planning to invest 291 million yuan (US$41.5 million) in Xunjie Medical, a subsidiary of Jiangsu Yuyue Medical Equipment & Supply. Once completed, the tech giant will hold 19.5 percent of Xunjie, while Jiangsu Yuyue will have 72.45 percent.
Health equipment maker Jiangsu Yuyue founded Xunjie Medical in November last year. The company controls the German firm Metrax which makes automated external defibrillators (AED). An AED is used to help those experiencing sudden cardiac arrest. It delivers electrical shock, or defibrillation, to help the heart re-establish an effective rhythm.
In Shanghai, each of its 508 Metro stations is equipped with an AED and staff are trained to use it. Across China, the demand for defibrillators is huge, a market that could soon reach 10 billion yuan. Most AEDs are imported. In 2013, Mindray Medical became the first domestic firm to make defibrillators and now holds about 20 percent of the market.
In the first half of this year, Xunjie Medical’s revenue was 66.5 million yuan, with a net loss of 25.8 million yuan. Shares in Yuyue Medical surged 5 percent on Tuesday morning but fell back to close 0.33 percent lower at 26.96 yuan.