MICROPORT (00853) plans to strategically restructure its CRM business.

MICROPORT (00853) announced that, in order to promote the deep integration and efficient collaboration of internal resources, enhance the competitiveness of the enterprise, integrate different business segments and product portfolios, and create long-term value for the group and its stakeholders, the Board of Directors is considering a proposed strategic reorganization of the group's CRM business. Accordingly, pending further discussions with interested parties, the CRM business will be merged with MicroPort (02160). The company, along with its subsidiaries, is a leading medical device group focused on innovating, manufacturing, and selling high-end medical devices globally. As of the date of this announcement, these business divisions include cardiovascular interventions, orthopedic medical devices, CRM, large artery and peripheral vascular interventions, neural interventions, structural heart disease, surgical Siasun Robot & Automation, and other businesses. The group's CRM business is dedicated to creating a global leading CRM solution, mainly engaged in the research and development, manufacturing, and sales of products for diagnosing, treating, and managing arrhythmias and heart failure, including pacemakers, defibrillators, cardiac resynchronization therapy devices, and associated lead products, as well as monitoring product combinations. On the other hand, the group's structural heart disease business conducted through MicroPort focuses on the research and commercialization of innovative catheter-based solutions in the field of structural heart disease, and is committed to popularizing the most advanced comprehensive solutions for doctors and patients to treat structural heart disease. The merger of the two businesses will help the group establish a cardiac product platform, providing diversified products and product pipelines, from the CRM business's pacemakers, defibrillators, cardiac resynchronization therapy devices, to the structural heart disease business's TAVI products, LAA products, TMV products, TTV products, and others. By establishing this diversified product platform, the group will become a unique and rare participant in this sector, offering a comprehensive product portfolio covering structural heart disease and CRM solutions, thereby enhancing the group's global market development capabilities and strengthening its position in each division worldwide through the merged business. Currently, the products of both businesses are marketed globally through direct sales and/or distributors. Apart from utilizing each business's respective marketing and sales channels, the two businesses have ongoing collaborations in several regions. By merging these two businesses, further sharing and coordinating of global market resources can be achieved, generating synergies, expanding the breadth and depth of existing collaborations, and helping the group establish stronger footholds and market influence in the global market, bringing the group's products to more hospitals and patients. The complementary synergies achieved through the merger of the two businesses will expand the scale and growth potential of the merged business, thereby enhancing its revenue, profitability, and cash flow. Through unified financial management, efficiency in fund utilization and fundraising capabilities can also be improved. By pushing the diversified products and product pipelines of the cardiac product platform into the international market, international capital markets' recognition of the value and growth potential of the two businesses will be enhanced.