6-K
Meihua International Medical Technologies Co., Ltd. (MHUAF)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Month of May 2023
Commission file number 001- 41291
MeihuaInternational Medical Technologies Co., Ltd.
(Exact name of registrant as specified in its charter)
88 Tongda Road, Touqiao Town
Guangling District, Yangzhou, 225000
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
On May 1, 2023, Meihua International Medical Technologies Co., Ltd., a Cayman Islands company (the “Company”), issued a press release disclosing that its subsidiary, Hainan Guoxie Technology Group Co., Ltd. (“Hainan Guoxie”), a People’s Republic of China (“PRC”) limited company, had entered into a land use rights agreement, dated April 10, 2023 (the “Land Use Rights Agreement”), with the Ministry of Natural Resources and Planning of Qionghai City, a government branch located in Hainan Province in the PRC.
Under the terms of the Land Use Rights Agreement, Hainan Guoxie obtained a 50-year lease, commencing before July 10, 2023, to develop 47,970.52 square meters of land in Tayang Town in Qionghai City, in exchange for payment of RMB24,060,000 (or the equivalent of RMB501.55 per square meter) (the “Assignment Price”). Hainan Guoxie will pay an initial deposit of RMB2,406,000, with the remaining amount of the Assignment Price to be paid within 30 days of entry into the Land Use Rights Agreement. In addition, Hainan Guoxie agreed to invest a total of RMB172,704,000 in the project, or the equivalent of RMB3,600.21 per square meter. Hainan Guoxie is obligated to begin construction by no later than July 10, 2024 and complete construction on the land on or before July 10, 2026. However, as disclosed in the press release attached hereto, the Company intends to complete such construction by the end of 2024.
The foregoing summary of the Land Use Rights Agreement does not purport to be complete and is qualified in its entirety by reference to the Land Use Rights Agreement, which is attached hereto as Exhibit 10.1 and incorporated herein by reference. A copy of the press release disclosing entry into the Land Use Rights Agreement is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Exhibit Index
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: May 1, 2023 | |
|---|---|
| Meihua International Medical Technologies Co., Ltd. | |
| By: | /s/ Xin Wang |
| Name: | Xin Wang |
| Title: | Chief Executive Officer |
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Exhibit 10.1
State-Owned Construction Land Use Right AssignmentAgreement
| Ministry of Natural Resources of the People’s Republic<br> of China<br><br> <br>State Administration of Industry and Commerce of<br> the People’s<br><br> <br>Republic of China |
|---|
Agreement No.: QH2023-3
State-Owned Construction Land Use Right AssignmentAgreement
Parties hereto：
Grantor: Ministry of Natural Resources and Planning of Qionghai City;
Address: No. 233, Jinshan Road, Qionghai City; Post Code: 571400;
Telephone: 0898-62822440; Fax: 0898-62817361;
Bank:__________________/_______________;
Bank Account:___________/_______________
Assignee: Hainan Guoxie Technology Group Co., Ltd.
Address: Room 608, F6, No.238 Dongfeng Road, Jiaqi Town, Qianghai City, Hainan Province;
Post Code:________________/_____________;Telephone:____________/_____________;
Fax:_____________________/___________________;
Bank:____________________/__________________;
Bank Account:________________/_______________.
ChapterI General Provision
Article1: This agreement is entered in by two parties on the principle of equality, compensation，honesty and credibility, in accordance with the Property Law of the People’s Republic of China, the Agreement Law of the People’s Republic of China, the Land Management Law of the People’s Republic of China, the Urban Real Estate Management Law of the People’s Republic of China and other laws, relevant administrative regulations and land supply policies.
Article 2: Land ownership belongs to the People’s Republic of China. The Grantor assigns the right to the use of state-owned construction land according to the authorization of the law. Underground resources and buried objects do not belong to the scope of the grant of the right to the use of state-owned construction land.
Article 3: The assignee shall, within the assigned period, have the right to occupy, use, profit from and dispose of the State-owned construction land according to law, and shall have the right to construct buildings, structures and ancillary facilities on the land according to law.
Chapter II The Delivery and the Payment of theAssigned Land
Article 4: The No. of the assigned land under this Agreement is TY-008 Block, Qionghai City, with a total area of 47,970.52 square meters. Among them, the area of the assigned land is 47,970.52 square meters.
The assigned land under this Agreement is located in Tayang Town.
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The plane boundary address of the assigned land under this Agreement is ____/_____; The boundary of the assigned land under this Agreement is shown in Appendix 1.
The vertical limit of the assigned land under this Agreement shall be ____/____as the upper limit, ____/_____as the lower limit, and the height difference shall be ____/____m. See Appendix 2 for the vertical boundary of the assigned land.
The assigned land refers to the the space with plane boundary and the vertical boundary.
Article 5: The assigned land under this Agreement shall be used for industrial land.
Article 6: The Grantor agrees to deliver the assigned land to the Assignee before 10 July, 2023 and the Grantor agrees that at the time of delivery the land shall be in the condition as set out in paragraph (2) of this Article:
(1) The land flatness： _______________/_______________;
The surrounding infrastructure： ___________/___________;
(2) Current land condition: access to road, electricity, telecommunication, water supply, water drainage outside the site, and flat land within the site.
Article 7: The term of grant of the right to use the state-owned construction land hereunder is 50 years from the date of delivery of the land as stipulated in Article 6 of this Agreement; If the transfer procedure for the use right of state-owned construction land originally allocated (leased) is redone, the transfer period shall be counted from the date of signing of the Agreement.
Article 8: The assignment price of the right to use the state-owned construction land under this Agreement shall be RMB 2,4060,000 and RMB 501.55 per square meter.
Article 9: The deposit of the land parcel under this agreement shall be RMB 2,406,000, and the deposit shall be used as assignment price.
Article 10: The assignee agrees to pay the price of the grant of the right to the use of State-owned construction land to the grantor in accordance with Item (1) of this Article:
(1) Within 30 days after the signing of this Agreement, the assignment price of the use right of state-owned construction land shall be paid in one lump sum;
(2) Pay the assignment price of the right to the use of state-owned construction land to the grantor in 1 installment according to the following time and amount:
I. The first installment is RMB 2,4060,000, paid before May 10, 2023.
II. Where the payment of the assignment price for the use right of state-owned construction land is made in installments, the Assignee agrees to pay the interest to the Grantor according to the loan interest rate published by the People’s Bank of China on the date of the payment for the first phase of the loan price when paying the assignment price for the second phase and the subsequent phases.
Article 11: The assignee shall apply for registration of the right to the use of the assigned state-owned construction land by presenting the Agreement and the payment receipt of the assignment price and other relevant materials after paying all the assignment price in accordance with the Agreement.
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Chapter III Land Development,Construction and Use
Article 12: The assignee agrees that the investment intensity of land development under this Agreement shall be governed by Item (1) of this Article:
| (1) | The land under this Agreement is used for industrial project construction, and the assignee agrees that<br>the total investment of the project fixed assets of the land under this Agreement shall not be less than the approved or registered amount<br>of RMB 172,704,000. The investment intensity shall not be less than RMB 3600.21 per square meter. The total investment in<br>fixed assets of the land parcel construction project hereunder includes the investment in buildings, structures and their facilities and<br>equipment and the transfer price, etc. |
|---|---|
| (2) | The lot under this Agreement shall be<br>used for the construction of non-industrial projects, and the assignee promises that the total amount of investment in the development<br>of the lot under this Agreement shall not be less than RMB _________/_________. |
| --- | --- |
Article 13: Any new buildings, structures and ancillary facilities built by the assignee within the land parcel under this Agreement shall conform to the planning conditions of the assignment land determined by the planning administrative department of the municipal (county) government (see Appendix3). Among them:
Main building: factory ;
Ancillary facilities: ancillary buildings ;
Gross floor area:_______/_________square meter;
Building plot ratio: not higher than ____/________ , not lower than 1.50 ;
The building height limit shall not be higher than 36 meters
or lower than______ /_______ ;
Building density not more than_______ /________not less than 30% ;
The green land rate shall not be more than 20% or less than_____/_____ ;
Other land use requirements: _______/_________ .
Article 14 The assignee agrees that the construction facilities of the lot under this Agreement shall be implemented in accordance with Item ____/____of this Article:
| (1) | The land under this Agreement is used for the construction of industrial projects, and according to the<br>planning and design conditions determined by the planning department, the land area used for the internal administrative office and living<br>service facilities of the enterprise within the scope of the assigned land under this Agreement does not exceed ____/____ % of the assigned<br>land, (not exceeding ____/____square meter) and the gross floor area not exceeding ____/____square meter. The assignee agrees not to construct<br>non-productive facilities such as residential units, specialist buildings, hotels, guest houses and training centres within the assigned<br>lot; |
|---|---|
| (2) | The lot under this Agreement shall be used for the construction of residential projects. According to<br>the planning and construction conditions determined by the planning and construction administration department, the total number of residential<br>construction units within the lot under this Agreement shall not be less than ____/____ set. Among them, the number of housing units with<br>a building area of less than 90 square meters shall be no less than ____/____, and the requirement of housing construction units shall<br>be ____/____ . The proportion of housing area less than 90 square meters in the total development area of the lot under this Agreement<br>shall not be less than ____/____ %. For the affordable housing, low-rent housing and other government-subsidized housing constructed within<br>the land under this Agreement, after the assignee agrees to complete the construction, it shall be performed in the following ways: |
| --- | --- |
I. Transfer to the government;
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II. Repurchase by the government;
III. In accordance with the government’s relevant regulations on the construction and sale of affordable housing;
IV._______ /_________
Article 15: The assignee agrees to build the following supporting projects within the land under this Agreement simultaneously and hand them over to the government free of charge after completion: ____/____
Article 16: The assignee agrees that the construction project of the lot under this Agreement will begin before July 10, 2024 and be completed before July 10, 2026.
If the assignee cannot start construction on schedule, it shall apply to the transferor for extension of construction 30 days in advance. If the transferor agrees to extend construction, the completion time of the project shall be extended correspondingly, but the period of extension shall not exceed one year.
Article 17: When the grantee carries out construction in the lot under this Agreement, the related water, gas, sewage and other facilities, the main line outside the lot, the interface of electricity substation and the introduction project shall be handled in accordance with the relevant provisions.
The assignee agrees that various pipelines and pipelines laid by the government for the needs of public utilities enter, exit, pass through and cross the granted lot, but if the function of the granted lot is affected by this, the government or the construction subject of public utilities shall give reasonable compensation.
Article 18: The assignee shall utilize the land according to the land use and plot ratio agreed in this Agreement and shall not change it without authorization. During the assigned period, if the use of the land agreed in this Agreement needs to be changed, both parties agree to handle it in accordance with Item (2) of this Article:
(1) The transferor shall reclaim the right to the use of the construction land with compensation;
(2) Go through the formalities for approving the change of land use according to law, sign the agreement for altering the Agreement for assigning the right to the use of State-owned construction land or re-sign the Agreement for assigning the right to the use of State-owned construction land; The transferee shall make up the assignment price of the right to the use of state-owned construction land according to the difference between the appraised market price of the right to the use of construction land under the new land use and the appraised market price of the right to the use of construction land under the original land use when the change is approved, and handle the land alteration registration.
Article 19: During the term of use of the lot under this Agreement, the government reserves the right of planning adjustment of the lot under this Agreement. If the original plan is modified, the existing buildings of the lot shall not be affected. However, during the term of use, the buildings, structures and ancillary facilities of the lot shall be rebuilt, rebuilt or rebuilt, or the application for renewal shall be implemented according to the plan in force at that time.
Article 20: The transferee may not take back the right to the use of the state-owned construction land legally used before the expiration of the term of use as agreed in this Agreement. Under special circumstances, where the right to the use of state-owned construction land needs to be recovered in advance in the light of social and public interests, the transferor shall apply for approval according to legal procedures, and compensate the land user according to the value of the above-ground buildings, structures and their attached facilities at the time of recovery, the assessed market price of the right to the use of state-owned construction land for the remaining years and the direct losses determined by the assessment.
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Chapter IV Assignment, lease and mortgage ofthe right to use State-owned construction land
Article 21: The assignee shall pay the assignment price for the use right of all state-owned construction land in accordance with the provisions of this Agreement, and shall have the right to assign, lease or mortgage the use right of all or part of the state-owned construction land under this Agreement after receiving the State-owned land use certificate. Where the assignment is made for the first time, the conditions prescribed in Item (1) of this Article shall be met:
| (1) | invest and develop in accordance with the Agreement, and complete more than 25 percent of the total amount<br>of development investment; |
|---|---|
| (2) | Industrial land or other construction land conditions have been formed for investment and development<br>in accordance with this Agreement. |
| --- | --- |
Article 22: The Agreement of assignment, lease or mortgage of the right to the use of state-owned construction land shall not violate the provisions of national laws and regulations and the provisions of this Agreement.
Article 23: After the whole or part of the right to the use of state-owned construction land is transferred, the rights and obligations specified in this Agreement and land registration documents shall be transferred accordingly. The term of use of the right to the use of state-owned construction land shall be the remaining term of use after deducting the term of use agreed in this Agreement.
After all or part of the state-owned construction land use right under this Agreement is leased, the rights and obligations stated in this Agreement and land registration documents shall still be borne by the assignee.
Article 24: In case of the transfer or mortgage of the right to the use of state-owned construction land, the parties to the transfer and mortgage shall apply to the administrative department of natural resources for the registration of the alteration of land by presenting this Agreement and the corresponding transfer and mortgage Agreement and the certificate for the use of state-owned land.
Chapter V Expiration
Article 25: If the land user needs to continue to use the land under this Agreement upon the expiration of the term of use stipulated in this Agreement, he shall submit an application for renewal to the transferor no later than one year before the expiration of the term. The transferor shall approve the renewal unless it is necessary to recover the land under this Agreement according to the social and public interests.
The term of the right to use the land for residential construction shall be automatically renewed.
Where the transferor agrees to renew the assignment term, the land user shall go through the procedures for assignment or leasing land for compensation in accordance with the law, sign a new Agreement for the compensated use of land for assignment or leasing, and pay the land assignment price, rent and other compensated use fees.
Article 26: At the end of the term for the grant of land, if the land user applies for the renewal and the application is not approved due to the need of social and public interests, the land user shall return to China with a land use certificate and go through the cancellation registration of the right to the use of state-owned construction land in accordance with the provisions. The grant person shall take back the right to the use of state-owned construction land free of charge. The transferor and the land user agree that the buildings, structures and ancillary facilities on the land under this Agreement shall be performed in accordance with Item (1) of this Article:
(1) The transferor shall recover the above-ground buildings, structures and their attached facilities, and give the land user corresponding compensation according to the residual value of the above-ground buildings, structures and their attached facilities at the time of recovery;
(2) The transferor shall recover the above-ground buildings, structures and their attached facilities free of charge.
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Article 27: If the land user fails to apply for renewal upon the expiration of the land grant period, the land user shall return to China with a land use certificate and go through cancellation registration of the right to the use of state-owned construction land in accordance with the provisions. The grant person shall recover the right to the use of state-owned construction land free of charge. The buildings, structures and their attached facilities on the land under this Agreement shall be recovered by the transferor free of charge. The land user shall maintain the normal use function of the above-ground buildings, structures and their attached facilities and shall not damage them artificially. If the above-ground buildings, structures and their attached facilities lose their normal functions, the transferor may require the land user to move or dismantle the above-ground buildings, structures and their attached facilities so as to restore the level of the site.
Chapter VI Force Majeure Factors
Article28**：** If either party fails to perform the Agreement in part or in whole due to force majeure, it may be exempted from liability, provided that it shall take all necessary remedial measures to reduce the losses caused by force majeure. Force majeure occurring during the delay in performance by the party shall have no effect of exemption from liability.
Article 29: In case of force majeure, the party shall notify the other party of the force majeure situation by letter, telegram, fax or other written form within 7 days, and submit to the other party, within 15 days after the occurrence of force majeure, a report and proof that the performance of this Agreement cannot be performed in part or in whole or needs to be postponed.
Chapter VII Liabilityfor Breach of Agreement
Article 30: The assignee shall pay the price of the grant of the right to the use of the state-owned construction land on time in accordance with the provisions of this Agreement. If the transferee fails to pay the price of the grant of the right to the use of state-owned construction land on time, the transferee shall pay 1 ‰ of the overdue payment daily from the date of overdue to the transferor; if the payment is delayed for more than 60 days and the transferor still fails to pay the assignment price of the use right of state-owned construction land after being urged by the transferor, the transferor has the right to terminate the Agreement, the transferor has no right to demand the return of the deposit, and the transferor may request the transferee to compensate for the loss.
Article 31: Where the transferee terminates the investment and construction of the project due to its own reasons and requests the transferor to terminate the performance of this Agreement and to return the land, the transferor shall return all or part of the grant price (excluding interest) of the right to use the state-owned construction land, excluding the deposit agreed in this Agreement, after being approved by the people’s government that originally approved the land transfer plan. If the right to use state-owned construction land is recovered, the buildings, structures and their attached facilities already built within the land lot may not be compensated, and the transferee may also require the transferee to remove the buildings, structures and their attached facilities so as to restore the site level; However, if the transferee is willing to continue to make use of the buildings, structures and ancillary facilities already built within the lot, certain compensation shall be given to the transferee:
(1) If the transferee applies to the transferor not less than 60 days before the expiration of one year from the date of commencement of construction agreed in this Agreement, the transferor shall refund the grant price paid by the transferee after deducting the deposit;
(2) If the transferee applies to the transferor not less than 60 days before the expiration of at least one year but not more than two years, from the date of commencement of construction agreed upon in this Agreement, the transferor shall, after deducting the deposit agreed upon in this Agreement and collecting the land idle fee in accordance with the provisions, return the remaining transfer price paid for the use right of state-owned construction land to the transferee.
Article 32: If the assignee causes the land to be left idle for at least one year but not more than two years, he shall pay the land idleness fee according to law; If the land has been idle for more than two years and construction has not begun, the transferor shall have the right to recover the use right of the state-owned construction land free of charge.
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Article 33: If the assignee fails to start construction according to the date agreed in this Agreement or agrees to postpone the Construction Institute to start construction on another date agreed upon, it shall pay the transferor liquidated damages equivalent to 1 ‰ of the total amount of the transfer price of the right to use the state-owned construction land for each day of delay, and the transferor has the right to require the transferee to continue to perform the Agreement.
If the assignee fails to complete the project according to the date agreed in this Agreement or agrees to postpone the completion of the project on another date agreed by the Construction Institute, it shall pay a penalty equal to 1 ‰ of the total amount of the transfer price of the right to use the state-owned construction land to the transferor for each day delayed.
Article 34: Where the total investment, investment intensity and total development investment of a project do not reach the standards stipulated in this Agreement, the transferee may, in accordance with the proportion of the actual difference to the agreed total investment and investment intensity index, require the transferee to pay a liquidated damages equivalent to the assignment price of the right to the use of state-owned construction land in the same proportion, and may also require the transferee to continue to perform the Agreement.
Article 35: If any index such as the floor area ratio and density of the lot under this Agreement is lower than the minimum standard agreed herein, the transferor may, according to the proportion of the actual difference to the minimum standard agreed herein, require the transferee to pay a penalty equivalent to the price of the grant of the right to use the state-owned construction land of the same proportion, and has the right to require the transferee to continue to perform this Agreement. If any index such as the floor area ratio and building density is higher than the highest standard agreed upon in this Agreement, the transferee shall have the right to recover the area part higher than the highest standard agreed upon, and shall have the right to require the transferee to pay the liquidated damages equivalent to the transfer price of the right to use the state-owned construction land of the same proportion according to the proportion of the actual difference in the agreed standard.
Article 36: Where the green land ratio of an industrial construction project, the proportion of land used for administrative office and living service facilities inside the enterprise, and the building area of administrative office and living service facilities inside the enterprise exceed the standards set out in this Agreement, the assignee shall pay a penalty equal to / ‰ of the grant price to the transferor. And remove the corresponding green and building facilities.
Article 37: Where the transferee pays the price for the grant of the right to the use of the State-owned construction land according to the provisions of this Agreement, the transferee must deliver the leased land on time according to the provisions of this Agreement. If the transferee’s possession of the land under this Agreement is delayed because the transferee fails to provide the leased land on time, for each day of delay, the transferee shall pay a penalty equal to 1 ‰ of the assignment price of the right to the use of state-owned construction land already paid by the transferee. The term of land use shall be counted from the date of actual delivery of the land. If the transferor delays the delivery of the land for more than 60 days and still fails to deliver the land after being urged by the transferee, the transferee has the right to rescind the Agreement, the transferee shall return double the deposit and the remaining part of the transfer price for the right to use the state-owned construction land, and the transferee may request the transferor to compensate for the losses.
Article 38: Where the transferor fails to deliver the land on time or the land delivered fails to meet the land conditions as stipulated in this Agreement or unilaterally changes the land use conditions, the assignee shall have the right to require the transferor to perform its obligations according to the prescribed conditions and compensate the assignee for the direct losses caused by the delay in performance. The term of land use shall be counted from the date on which the agreed land conditions are achieved.
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Chapter VIII Applicable Law and Dispute Settlement
Article 39: The laws of the People’s Republic of China shall govern the conclusion, validity, interpretation, performance and dispute settlement of this Agreement.
Article 40: Any dispute arising from the performance of this Agreement shall be settled by the parties through negotiation. If no agreement can be reached through negotiation, the dispute shall be settled in the manner stipulated in Item (2) of this Article:
| (1) | Submit to ____/____ an arbitration commission for arbitration; |
|---|---|
| (2) | bring a suit before a people’s court in accordance with the law. |
| --- | --- |
Chapter IX SupplementaryProvisions
Article 41: The land grant scheme hereunder has been approved by the People’s Government of Qionghai City, and this Agreement shall come into force on the date of signing by both parties.
Article 42: Both parties hereto warrant that the name, mailing address, telephone number, fax number, bank of deposit, agent and other contents entered in this Agreement are true and valid. If any information of one party is changed, it shall notify the other party in writing within 15 days from the date of change. Otherwise, the other party shall be liable for the failure to notify the other party in time caused by such change.
Article 43: This Agreement and the appendices are 30 page in total. The Chinese version shall prevail.
Article 44: The price, amount and area of the Agreement shall be expressed in large and lowercase at the same time, and the case amount shall be the same. In case of any discrepancy, the case amount shall be uppercase.
Article 45: Matters not covered in this Agreement may be agreed upon by both parties as attachments to this Agreement and have the same legal effect as this Agreement.
Article 46: This Agreement is made in quadruplicate, with two for the transferee and two for the transferee.
Two copies shall have the same legal effect.
Supplementary Clause
The land project shall adopt the prefabricated construction mode and be executed according to the relevant regulations of the province.
| Grantor (Stamp) (Omitted) | Assignee (Stamp) (Omitted) |
|---|---|
| /s/ Quan Li | /s/<br> Yongjun Liu |
| Legal Representative: Quan Li | Legal Representative: Yongjun Liu |
| Date: April 10, 2023 | Date: April 10, 2023 |
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Exhibit 99.1
Meihua International Medical Technologies Co., Ltd.’s SubsidiaryCompletes Purchase of Land Use Right of Nearly 50,000 Square Meters in Hainan Free Trade Port Boao Hope City for the Construction of IntegratedMedical Industrial Park
YANGZHOU, China, May 1, 2023 /PRNewswire/ -- Meihua International Medical Technologies Co., Ltd. (“MHUA” or the “Company”) (NASDAQ: MHUA), a reputable manufacturer and provider of Class I, II and III disposable medical devices with operating subsidiaries in China, today announced the Company, via its subsidiary Hainan Guoxie Technology Group Co, Ltd. (“Hainan Guoxie”), has completed the purchase of land use rights in the South of Hainan Free Trade Port Boao Hope City (“Hope City”) in Qionghai city for investment and construction of an integrated medical industrial park.
Pursuant to the construction land use right contract signed between the City of Qionghai and Hainan Guoxie, the Company will pay a total of RMB24.06 million for the right to use the land for the next 50 years. The land has a total area of 47,970.52 square meters, and MHUA will complete the final payment for the land use right purchase by May 10, 2023.
MHUA plans to develop a comprehensive industrial park on the land, including a product research and development, production and sales training center, and imported/exported product assembly and technology license-in projects. It will also have a hospital and a retirement and rehabilitation-integrated service center. The construction of the industrial park is expected to be completed by the end of 2024, and the Company will start operating the industrial park with cooperation partners soon thereafter.
Mr. Liu Yongjun, Chairman of MHUA, commented: “The Company announced its entry into the cooperation agreement with the City of Qionghai in Hainan Province in February, for purposes of developing a medical industrial park in Hainan Province. The medical industrial park will be focused on products such as minimally invasive interventional medical devices and equipment, health care consumables, and stem cell therapy. The Company successfully obtained land use rights for a core property near Qionghai and Hope City, building a solid foundation for our plan to invest in the construction of the integrated medical industrial park. The Company also aims to further expand its project-based cooperation with other industry parties in order to better utilize the local support policies provided by Hope City and Hainan province.
“Our subsidiary, Hainan Guoxie, which is 55% owned by our wholly-owned subsidiary, Kang Fu International Medical, was founded in October of 2021 in the City of Qionghai in Hainan Province. Hainan Guoxie aims to increase investment in Hainan under China’s key development policy by taking advantage of its tax allowances, licensed medical offshore introduction policy, and excellent recreational environment. With this, we believe we can create a fully developed medical industrial park within the next 10 years, thus allowing us to increase the MHUA’s technology development and sustainable cash flow profitability. The project is led by the Hainan Qionghai government to assist MHUA in localizing its business operations in Hainan. Over the next five years, we believe medical informatization, digitalization and brand establishment will become the core strategic directions of MHUA, supporting the Company to accelerate growth through seeking domestic and international cooperation. Further, we believe it will serve as an engine to continuously strengthen MHUA’s capacity, profitability and help us build a first-class team and brand, best-in-class solutions and services at the Company to fuel the rapid development of our business.”
About Meihua International Medical Technologies Co., Ltd.
Meihua International Medical Technologies is a reputable manufacturer and provider of Class I, II and III disposable medical devices with operating subsidiaries in China. The Company manufactures and sells Class I disposable medical devices, such as HDPE bottles for tablets and LDPE bottles for eye drops, throat strip, and anal bags, and Class II and III disposable medical devices, such as disposable identification bracelets, gynecological examination kits, inspection kits, surgical kits, medical brushes, medical dressing, medical catheters, uterine tissue suction tables, virus sampling tubes, disposable infusion pumps, electronic pumps and anesthesia puncture kits, among other products which are sold under Meihua’s own brands and are also sourced and distributed from other manufacturers. The Company has received an international “CE” certification and ISO 13485 system certification and has also registered with the FDA (registration number: 3006554788) for over 20 Class I products. The Company has served hospitals, pharmacies, medical institutions and medical equipment companies for over 30 years, providing over 1,000 types of products for domestic sales, as well as over 120 products which are exported to more than 30 countries internationally across Europe, North America, South America, Asia, Africa and Oceania. For more information, please visit www.meihuamed.com .
Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s ability to achieve its goals and strategies, and its ability to fully execute on the planned agreement, the Company’s future business development and plans of future business development, including its ability to successfully develop robotic assisted surgery systems and obtain licensure and certification for such systems, financial conditions and results of operations, product and service demand and acceptance, reputation and brand, the impact of competition and pricing, changes in technology, government regulations, fluctuations in general economic and business conditions in China, and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission (“SEC”). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, including under the section entitled “Risk Factors” in its annual report on Form 20-F, as filed with the SEC on April 14, 2023, as well as its current reports on Form 6-K and other filings, all of which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
Janice Wang
Wealth Financial Services LLC
Phone:
+86 13811768599
+1 628 283 9214
Email: [email protected]