BGM Group Ltd. Pioneers Innovation in AI and Intel Technology, Fostering Holistic Integration of Healthcare and Insurtech

Rhea-AI Summary

BGM Group has announced the acquisition of AIX's intelligent platform, valued at 1 billion RMB ($140 million), including subsidiaries RONS Technology and Xinbao Investment. The transaction, expected to complete by end-2024, marks BGM's strategic entry into AI technology and insurance services. RONS Technology specializes in digital solutions for financial and insurance industries, while Xinbao Investment operates 'Baowang', an insurance trading platform offering over 300 products from 30+ insurance companies. This acquisition aims to integrate healthcare, medicine, and insurance services, leveraging BGM's pharmaceutical expertise with AIX's technological capabilities.

Positive

• Strategic acquisition valued at $140 million expands business into AI and insurtech sectors
• Integration with AIX's platform provides access to 300+ insurance products from 30+ companies
• Potential for new revenue streams through diversification beyond pharmaceuticals
• Access to established insurtech infrastructure through RONS Technology and Xinbao Investment

Negative

• Significant capital expenditure of $140 million for the acquisition
• Risk of integration challenges between pharmaceutical and insurtech operations
• Venture into new sectors may dilute focus from core pharmaceutical business

Insights

M&A Analyst

The $140 million acquisition of AIX's intelligent platform marks a significant strategic pivot for BGM into AI and insurtech. The deal's valuation appears reasonable given RONS Technology's established presence in insurtech and Xinbao Investment's extensive insurance platform with 300+ products. This acquisition creates three key synergistic opportunities:

• Integration of healthcare data with insurance services
• Cross-selling potential through Baowang's platform reaching new customer segments
• Technology transfer from RONS' AI capabilities to BGM's pharmaceutical operations

The transaction should enhance BGM's competitive position by creating an integrated healthcare-insurance ecosystem, though successful integration and realization of synergies will be crucial.

Healthcare Technology Analyst

This strategic move positions BGM at the forefront of healthcare's digital transformation. The integration of RONS Technology's AI capabilities with BGM's pharmaceutical expertise could revolutionize drug development, patient care and insurance processes. The Du Xiaobao platform's success in insurance sales demonstrates proven AI implementation, which could be repurposed for healthcare applications. Key opportunities include:

• AI-driven drug discovery optimization
• Personalized medicine recommendations
• Automated claims processing and risk assessment

However, the challenge lies in effectively adapting insurance-focused AI systems for healthcare applications while ensuring regulatory compliance.

CHENGDU, China, Nov. 29, 2024 /PRNewswire/ -- BGM Group Ltd. (NASDAQ: BGM) ("the Company" or "BGM"), a leading global pharmaceutical enterprise, today announced its acquisition of the intelligent platform of AIX Inc. (NASDAQ: AIFU) ("AIX") valued at 1 billion RMB (approximately $140 million). The intelligent platform encompasses AIX's subsidiaries – RONS Intelligent Technology (Beijing) Co., Ltd. ("RONS Technology") and Shenzhen Xinbao Investment Management Co., Ltd. ("Xinbao Investment"). Completion of the transaction is anticipated by the end of 2024.

Through this strategic acquisition, BGM formally ventures into the domains of AI intelligent technology and financial and insurance services, setting the stage for diversified growth beyond biopharmaceuticals and inaugurating a new era for the Company in the digital and intelligent landscape.

Mr. Xin Chen, CEO of BGM, commented, "AIX's efforts in digital innovation and intelligent transformation have yielded remarkable outcomes. Their accumulated technology and expertise will serve as a crucial reference for our own transformation in the pharmaceutical and healthcare sectors. This collaboration will not only bolster BGM's technological capabilities but also expedite our strategic development, enabling us to deliver more efficient and intelligent solutions to the global market. This partnership represents a mutually beneficial opportunity and I am optimistic about our future together."

Mr. Hu Yinan, CEO of AIX, stated, "Intelligent technology is the future of the insurance sector. AIX's intelligent platform has already exhibited significant potential within the industry. However, broader advancement requires an open industry perspective and ecological support. Partnering with BGM will allow our platform to reach a wider user base and unlock greater potential for AI technology beyond the insurance realm. Furthermore, this collaboration aligns with national elderly care policies and promotes the growth of the silver economy. By extending our intelligent capabilities from insurance into the pharmaceutical and healthcare sectors, we aim to facilitate industry transformation through technology and propel AIX's growth. AIX will maintain its role as the primary user of the intelligent platform, actively investing resources to maximize its technological capabilities. We are confident that this collaboration will create new opportunities for both AIX and the intelligent platform, enhancing value for our customers, industry partners, and shareholders."

Founded in 2009, RONS Technology, a wholly-owned subsidiary of AIX, specializes in developing digital and intelligent technologies for the financial and insurance industries. RONS Technology boasts extensive experience in insurtech, having introduced disruptive innovations through its RONS Open Platform and flagship product Du Xiaobao. RONS Technology has steadily built a strong presence within the insurtech landscape, offering substantial growth potential and development opportunities.

Established in 2004, Xinbao Investment has developed a professional integrated online and offline insurance trading and service platform known as "Baowang". Baowang provides comprehensive risk protection solutions for individuals, families, and small to medium-sized enterprises through the integration of technology, products, and services. The platform currently offers over 300 flagship products from more than 30 insurance companies, addressing various protection needs such as critical illness, term life, accident, health, travel, and corporate insurance.

By acquiring RONS Technology and Xinbao Investment, BGM will effectively integrate resources from intelligent technology and biopharmaceuticals, creating a new landscape for the synchronized development of "healthcare, medicine, and insurance" in the global market. The technological innovations from RONS Technology, particularly the pioneering achievements of Du Xiaobao in insurance sales, will empower BGM to strengthen its competitive advantage at the intersection of medical technology and insurance technology, offering users comprehensive and intelligent healthcare and insurance solutions while further expanding its global influence.

Moreover, RONS Technology and Xinbao Investment will benefit from enhanced development opportunities arising from this transaction. BGM's robust presence in the healthcare sector, especially its extensive footprint in the global pharmaceutical market, will provide additional application scenarios for the products and services of both entities. RONS Technology and Xinbao Investment intend to leverage BGM's international market network and pharmaceutical expertise to explore novel development models within the healthcare and insurance industries, continuously broaden their market reach, and serve as potent profit generators for BGM in the future.

About BGM Group Ltd

BGM Group Ltd,headquartered in Chengdu, China, is an innovative company dedicated to the fields of biopharmaceuticals, bio-extraction, and medical health. Our current product range includes oxytetracycline APIs, licorice preparations, and crude heparin sodium. The oxytetracycline API not only provides raw materials for pharmaceutical companies to produce human antibiotics but also supports the global breeding and livestock industries to ensure the safety of poultry and seafood. The crude heparin sodium, after processing by downstream companies, is transformed into refined heparin sodium and heparin sodium injection solutions, which are major anticoagulants. Licorice preparations, such as compound licorice lozenges, are used as cough suppressants and supplied to retail pharmacies. For more information, visit the Company's website at: https://www.bgmgroupltd.com/

Forward-looking Statements

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

For investor and media inquiries, please contact:
info@qiliancorp.com
xinchen@qiliancorp.com 

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SOURCE BGM Group Ltd

FAQ

What is the value of BGM's acquisition of AIX's intelligent platform?

BGM's acquisition of AIX's intelligent platform is valued at 1 billion RMB (approximately $140 million).

When will BGM (NASDAQ: BGM) complete the acquisition of AIX's platform?

The acquisition is expected to be completed by the end of 2024.

How many insurance products does Xinbao Investment's Baowang platform offer?

Baowang platform offers over 300 flagship products from more than 30 insurance companies.

What subsidiaries of AIX are included in BGM's acquisition?

The acquisition includes RONS Intelligent Technology (Beijing) Co., and Shenzhen Xinbao Investment Management Co.,