JIN MEDICAL INTERNATIONAL LTD. Announces Joint Venture with Shanghai Sdoma Smart Technology Co.

Changzhou City, China, June 29, 2023 (GLOBE NEWSWIRE) -- JIN MEDICAL INTERNATIONAL LTD. (the "Company" or “JinMed”) (NASDAQ: ZJYL), a Cayman Islands holding company with Chinese operating entities that manufacture and develop wheelchairs and living aids products, today announced that the Company’s variable interest entity, Changzhou Zhongjin Medical Equipment Co. Ltd., has entered into an investment agreement (the “Agreement”) with Shanghai Sdoma Smart Technology Co. (“Sdoma”) to form a joint venture (the “JV”) dedicated to the production and sales of a range of high-quality electric wheelchair and mobility scooter products. Sdoma specializes in research and development, production, and sales of elderly mobility scooters and daily living aids products under the brand name “Sdoma”, which is a top-ranked brand in China based on its online traffic measured by monthly visits to its online store, according to SYCM.com, an e-commerce analytics platform in China. On June 28, 2023, JinMed and Sdoma held a formal signing ceremony at JinMed’s headquarters in Changzhou, China.

Pursuant to the Agreement, the JV will be established in Shanghai, with an estimated investment amount of up to RMB50 million in the next three years, 60% of which shall be contributed by JinMed and the remaining 40% shall be contributed by Sdoma.

Pursuant to the Agreement, JinMed shall be responsible for the design and production of the electric wheelchairs and mobility scooter products, while Sdoma shall be responsible for the sales of the products, brand marketing, and overall operation of the JV.

The JV is expected to synthesize the strengths of JinMed and Sdoma in the electric mobility scooter industry, with a focus on expanding both companies’ product lines, market penetration, and sales channels, both online and offline. JinMed and Sdoma, through the JV, plan to establish more than 30 offline stores in major cities in China within the next three years.

Mr Erqi Wang, Chairman and CEO of the Company commented: “The formation of the JV is a significant milestone for both JinMed and Sdoma. As a mobility scooter product company with internet business attributes, Sdoma has developed mature internet marketing system, high marketing efficiency, and has quickly grown its market share and brand awareness in recent years, leading strong sales in Chinese market. JinMed has been committed to innovation and R&D in the field of assistive mobility scooter products for decades, and has achieved remarkable results in the upgrade of product quality and brand awareness in the industry over the years. The JV will further integrate JinMed’s advantages in electric mobility products and Sdoma’s strengths in online and offline channels and marketing, so that to enhance the market penetration of our electric mobility scooter products, and bring stable growth to our business of daily living aids products.”