\n Announces Details of Proposed Listing on Main Board of SEHK <\/p>\n
Highlights<\/b><\/p>\n
\n
<\/p>\n
- \n
- The fourth largest brand operator that carries
\nboth over-the-counter (“OTC”) proprietary medicines and OTC proprietary Chinese
\nmedicines in Hong Kong in 2019 by revenue[1]<\/sup><\/sup><\/a><\/li>\n- As a subsidiary of Jacobson Pharma Corporation
\nLimited (“Jacobson Pharma”; Stock Code: 2633), JBM Healthcare is a unique field
\nplayer with drug expertise and a heritage that continues to foster a corporate
\nculture of prioritizing product efficacy and quality<\/li>\n- Notable and growing brand portfolio along with a
\nproven brand management capability. As at March 31, 2020, JBM Healthcare
\ncarried a total of 20 principal brands, including 11 third-party brands and 9
\nown brands<\/li>\n- Extensive sales and distribution network in Hong
\nKong, with a geographical reach spanning over China, Macau, Taiwan and select
\ncountries in Southeast Asia, Europe, North America and the Caribbean Islands<\/li>\n<\/ul>\n
\n
\n
\n
\n
\n
\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\nHONG KONG SAR –\u00a0Media OutReach<\/a>\u00a0– 25 January
\n2021 – JBM (Healthcare) Limited<\/a> <\/b>(“JBM Healthcare<\/b>” or “Company<\/b>“
\nand, together with its subsidiaries, the “Group<\/b>“),
\na Hong Kong-based company that markets and distributes branded healthcare
\nproducts with product footprint across Greater China, Southeast Asia and
\ncertain other countries, today announced details of the proposed listing of its
\nshares on the Main Board of The Stock Exchange of Hong Kong Limited (“SEHK”). <\/p>\n![](\"https:\/\/release.media-outreach.com\/release.php\/Images\/Thumb\/500x0\/119799\/JBM-Healthcare-Limited.jpg#image-119799\")
<\/p>\n
\n <\/p>\nMr. Patrick Wong,
\nChief Executive Officer and Executive Director of JBM Healthcare (left) and Dr.
\nChu Ka Wing, President of the Proprietary Chinese Medicine Business and
\nExecutive Director of JBM Healthcare (right)<\/i><\/h5>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\nJacobson Pharma indirectly holds 85.04% of JBM Shares. Upon
\ncompletion of the proposed spin-off, Jacobson Pharma will hold not less than
\n50% of the shares of JBM Healthcare (“JBM
\nShares<\/b>“) and that JBM Healthcare will remain a subsidiary of Jacobson
\nPharma with its results continue to be consolidated into the accounts of
\nJacobson Parma. Jacobson Pharma will effect a distribution in specie of a
\nportion of its JBM Shares if the spin-off proceeds, where each qualifying
\nshareholder of Jacobson Pharma will be entitled to one JBM Share for every
\neight shares of Jacobson Pharma held.<\/p>\nJBM Healthcare has received pre-IPO Investments from three strategic
\ninvestors, namely New Heritage Healthcare Limited, who was one of the cornerstone
\ninvestors of Jacobson Pharma during its global offering in 2016 and an existing
\nshareholder of Jacobson Pharma; Gold Century Assets Limited, which its
\nwholly-owned subsidiary Kin Fung Weisen-U Company Limited, a joint venture
\npartner of the Group; and Profit Cape Limited, an indirect wholly-owned
\nsubsidiary of Tycoon Group Holdings Limited (Stock Code: 3390), a company
\nlisted on the Main Board of the Stock Exchange who is also JBM Healthcare’s
\nHong Kong distributor and the parent company of its joint venture partner in a
\njointly controlled entity. A total of 97,000,000 JBM Shares were issued
\npursuant to the pre-IPO investments, representing approximately 11.43% of the
\ntotal issued JBM Shares immediately after completion of the pre-IPO investments,
\nwith an aggregate consideration of HK$97.0 million,<\/span><\/p>\n
\n <\/p>\n\u00a0<\/b><\/p>\n
\n <\/p>\nOffering Details<\/u><\/b><\/p>\n
\n <\/p>\nThe Group intends to offer a total of 44,686,000 JBM Shares
\nfor the Public Offer. After deducting underwriting commissions and estimated
\nexpenses payable in connection with the Public Offer and assuming an offer
\nprice of HK$1.2 per Offer Share, net proceeds from the Public Offer are
\nestimated to be approximately HK$10.6 million. China Galaxy International Securities
\n(Hong Kong) Co., Limited is the Sole Sponsor of the listing. <\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\nThe Hong Kong Public Offer will begin at 9:00 am on 26
\nJanuary 2021 (Tuesday) and will end at 12:00 noon on 29 January 2021 (Friday).
\nThe allotment results will be announced on 4 February 2021 (Thursday). Dealing
\nin JBM Healthcare’s Shares will commence on the Main Board of SEHK on 5
\nFebruary 2021 (Friday) under the stock code 2161. The shares will be traded in
\nboard lots of 2,000 shares each.<\/p>\n
\n
\n
\n <\/p>\nInvestment
\nHighlights<\/u><\/b><\/p>\n
\n <\/p>\nA leading Hong
\nKong-based brand operator with a notable and growing brand portfolio and proven
\nbrand management capability <\/b><\/p>\n
\n <\/p>\nThe Group was the fourth largest brand operator that carries
\nboth OTC proprietary medicines and OTC proprietary Chinese medicines in Hong
\nKong in 2019 by revenue1<\/sup>. As at March 31, 2020, the Group carried a
\ntotal of 20 principal brands, including 11 third-party brands and 9 own brands.
\nBesides, the Group has established a track record of introducing
\ncategory-leading overseas branded healthcare products to local markets and
\nrevitalized the brand positioning of its heritage household brands based on
\nchanging demographics and consumer behaviors. It is believed that its brand
\nmanagement capability is among the core competitive advantages in the branded
\nhealthcare market.<\/p>\n
\n <\/p>\n\u00a0<\/b><\/p>\n
\n <\/p>\nA unique field player
\nwith a heritage of pharmaceutical background and quality-driven culture of
\nJacobson Pharma <\/b><\/p>\n
\n <\/p>\nAs a subsidiary of Jacobson Pharma, a leading generic drug
\ncompany in Hong Kong in 20191<\/sup>, the Group is a unique field player
\nwith drug expertise and a heritage that continues to foster a corporate culture
\nof prioritizing product efficacy and quality. It is believed that, leveraged on
\nthe ethical and trustworthy reputation and high market standing of the Jacobson
\nPharma in the pharmaceutical sector, it makes third-party brand owners and
\nproduct originators are more inclined to choose to partner with the Group. In
\naddition, with the high standard of quality control inherited from an ethical pharmaceutical
\ncompany, <\/b>JBM Healthcare is one of
\nthe few GMP-accredited proprietary Chinese medicine manufacturers in Hong Kong1<\/sup>.
\nIt is believed the long track record of providing reliable and quality products
\nposition the Group to capture any future market opportunities.
\n <\/p>\n\u00a0<\/b><\/p>\n
\n <\/p>\nDual engines of
\ngrowth through sourcing and development of category-leading products and
\nacquisitions of synergetic brands <\/b><\/p>\n
\n <\/p>\nBacked by a specialized product development team with
\nrelevant regional industry knowledge, the Group has a long proven track record
\nof deploying dual engines to support its business developments. Not only
\norganically growing its business through the in-depth understanding and clear
\nvision of healthcare trends and categories with market space, as well as
\nidentifying product candidates or development with fitting allure and efficacy
\nattributes. The Group also demonstrated the consistent ability to realize
\nsynergies through strategic acquisitions and investments, which are in line
\nwith its growth and business directions. It enables JBM Healthcare to expand its
\nown brand portfolio successfully through acquisition and integration of
\nattractive branded healthcare products.
\n <\/p>\n\u00a0<\/b><\/p>\n
\n <\/p>\nExtensive sales and
\ndistribution network in Hong Kong with multi-region geographical reach <\/b><\/p>\n
\n <\/p>\nThe Group has established an extensive sales and
\ndistribution network in Hong Kong, with a geographical reach spanning over
\nChina, Macau, Taiwan and select countries in Southeast Asia, Europe, North
\nAmerica and the Caribbean Islands. The stable business relationships with key
\nretailers and the Hong Kong distributor, coupled with its reputation in delivering
\nhigh quality products and the wide distribution network, have enabled JBM
\nHealthcare to generate effective retail penetration and commercialization of its
\nnew products. Armed with a hybrid of sales and distribution models tailored for
\ndifferent products and geographic markets, It is believed that JBM Healthcare
\nis well-positioned to leverage its geographical presence and develop a
\nsustainable regional platform in Asia for branded healthcare products.<\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\nSeasoned management
\nteam with in-depth industry knowledge and regional experience <\/b><\/p>\n
\n <\/p>\nThe Group’s core management team comprises a group of
\ntechnically seasoned industry veterans with a strong track record and proven
\nexecution capabilities. Vast majority of its directors and senior management
\nteam, who on average has approximately 25 years of relevant industry experience,
\nare registered pharmacists or have pharmaceutical or medical academic
\nbackgrounds. It is believed that the experienced senior management team has
\nbeen and will continue to be key to its success in deployment of its dual
\nengines of growth, allowing the Group to further integrate its regional
\nresources and take advantage of new opportunities.<\/p>\n
\n <\/p>\nBusiness Strategies<\/u><\/b><\/p>\n
\n <\/p>\nThe PRC cross-border e-commerce market has grown rapidly as
\na result of the rising demand for overseas healthcare products and an
\nincreasingly structured and formalized cross-border e-commerce channel in the
\nPRC market. According to Frost & Sullivan Report, the gross merchandise
\nvolume of pharmaceutical products e-commerce market in China is forecasted to
\nreach HK$452.2 billion by 2024. The Group intends to expand its product
\nofferings and deepen product penetration in China through cross-border
\ne-commerce initiatives. In order to increase its product penetration to end
\nconsumers across all provinces, cities and counties in China and shorten its
\nproduct launch time, the Group will continue to actively deploy efforts and
\nresources in the development of cross-border e-commerce initiatives by
\nbroadening presence in cross-border e-commerce channels across a variety of
\npopular platforms and engaging different cross-border e-commerce models.
\nBesides, the Group intends to offer eligible branded health products through
\ncross-border e-commerce channels while formulating integrated brand strategies
\nto raise consumer awareness and profile of its brands and its own online store
\nto support product launches and improve sales performance. The Group aims to
\noptimize its online presence and enhance the visibility of its brand and
\nproducts through multi-channel performance marketing initiatives, with the goal
\nto increase the product penetration in the PRC market. <\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\nIn addition, the Group will further expand its portfolio
\nthrough organic growth and mergers and acquisitions in order to maintain its
\ncompetitive position and ensure its future growth and success. While the Group
\nwill continue to seek organic growth for its product portfolio and adapt its
\nproduct offerings and develop product line extensions by building on existing
\nown brand products and their brand appeal, it also intends to pursue suitable
\nopportunities to acquire synergistic businesses in line with its growth and
\nbusiness directions to enhance existing product portfolio and increase local
\npresence in other key markets for its products and business. <\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\nLeveraging the Group’s established local business
\nrelationships and networks, JBM Healthcare intends to develop a branded
\nhealthcare product sourcing and distribution platform in Asia through the
\nintegration of its regional resources and foothold. The Group sources
\nthird-party brand products and secure third-party manufacturing arrangements
\nfor selected products in Greater China and other select countries in Southeast
\nAsia. In the short-term, the Group intends to leverage its established local
\nbusiness relationships and networks to further enhance the on-the-ground
\npresence of its products through the establishment of joint venture and
\nexpansion of existing relationship. In particular, JBM Healthcare has established
\na joint venture with a renowned PRC state-owned conglomerate through a jointly
\ncontrolled entity with its Hong Kong distributor and intend to increase its
\nproduct penetration and explore other collaborative opportunities in China. For
\nthe long-term, the Group aims to strengthen its geographical reach in Southeast
\nAsia and capture the growing demand for health and wellness products. The Group
\nwill seek to leverage on its track record in those strategic locations to
\nfurther source and introduce new third-party brand products and eventually
\ndevelop into a sustainable branded healthcare product sourcing and distribution
\nplatform in Asia. <\/p>\n
\n <\/p>\n\u00a0<\/p>\n
\n <\/p>\nBacked by an extensive network in Hong Kong, the Group
\nintends to unleash the sales and distribution potential of its Chinese medicine
\npractitioner network. It is believed that the direct access and frequent interaction
\nwith Chinese medicine practitioners in Hong Kong enables the Group to gain
\nspecific insights and understanding of their practices, preferences and
\noperational environment. JBM Healthcare will seek to utilize such insights to
\ncapture new business opportunities and capitalize on this distribution channel. \n<\/p>\n
\n <\/p>\nUse of Proceeds<\/u><\/b><\/p>\n
\n <\/p>\nAssuming the Offer Price
\nis HK$1.2 per Offer Share, the net proceeds are expected to be approximately
\nHK$10.6 million, and the Group will apply such net proceeds for the following
\npurposes:<\/p>\n
\n <\/p>\n\n\n
\n <\/p>\n Item<\/b><\/p>\n
\n <\/td>\n
<\/p>\n
<\/p>\n Percentage<\/b><\/p>\n
\n <\/td>\n
\n <\/tr>\n\n <\/p>\n - \n
- To fund the portfolio development and brand
\n management of proprietary Chinese medicines<\/li>\n<\/ul>\n\n <\/td>\n
<\/p>\n
<\/p>\n 47.2%<\/p>\n
\n <\/td>\n
\n <\/tr>\n\n <\/p>\n - \n
- To fund payments (upfront, in stages or
\n otherwise) for obtaining additional distribution rights from third-party
\n brand owners, as part of the strategy to grow third-party brand product
\n portfolio<\/li>\n<\/ul>\n\n <\/td>\n
<\/p>\n
<\/p>\n 43.4%<\/p>\n
\n <\/td>\n
\n <\/tr>\n\n <\/p>\n - \n
- To
\n supplement working capital and for general corporate purposes<\/li>\n<\/ul>\n\n <\/td>\n
<\/p>\n
<\/p>\n 9.4%<\/p>\n
\n <\/td>\n
\n <\/tr>\n<\/tbody>\n<\/table>\n
- To
- To fund payments (upfront, in stages or
- As a subsidiary of Jacobson Pharma Corporation