Optomed Oyj - Inside information

Inside Information: Optomed has signed a shareholder's agreement with Zhongbao Fund to establish a joint venture in China

Optomed PlcInside Information 24 June 2024 at 14.00, Helsinki

Inside Information: Optomed has signed a shareholder's agreement with Zhongbao
Fund to establish a joint venture in China

Optomed has signed a shareholder's agreement with regards to a joint venture in
China with Zhongbao,

a Chinese private equity firm based in Shenzhen, China. The firm focuses on
growth opportunities, and it invests in a diversified range of industries.
Optomed will own 19.9% of the joint venture and Zhongbao 80.1%.

Previously, Optomed has announced in its Q1-2024 report about discussions with a
prominent eye hospital and private equity fund to establish a joint venture for
eye screening services, aiming for implementation in either Q2 or Q3. The
business model for this venture will be a recurring revenue model, ensuring
sustainability and long-term success.

Being the largest aging population, China is facing the growing challenge with
huge number of patients and shortage of medical services and doctors, especially
in the eye-care industry. Further, over 140 million Chinese have diabetes, 50%
of which have not been properly identified or diagnosed. Since 2021, China
government made a plan to promote the eye screening services to cover nation
-wide population in the coming years, and the creation of this joint-venture is
in compliance with this strategic direction in China.

Once the joint venture is set up, the cooperation will begin with a trial period
that will be done in collaboration with a leading ophthalmic institute
(“strategic partner”) under National Health Commission of China (NHC). The
strategic partner is the industry leader in ophthalmic institute, both in terms
of technology development and total number of eye care patients since its
establishment.

Zhongbao Fund is the private equity investment platform under CITIC Poly Fund,
which is owned by two leading Global Fortune-500 companies, China CITIC and Poly
Group. China CITIC is the largest financial holdings group in China, while Poly
Group is the largest property development & investment company. Zhongbao is also
one of few licensed fund management companies which both have the QFLP
(Qualified Foreign Limited Partners) & QDLP (Qualified Domestic Limited
Partners) licenses, the cross-border investment management scheme by China
financial regulatory.

Credit risk accrual

At the same time, Optomed has re-evaluated the amount of the credit risk accrual
in China. Optomed has a receivable of 1556 thousand from a Chinese client dating
back to 2021, and the repayments of the client are late. Optomed increases the
amount of the credit risk accrual from 50% (EUR 778 thousand) to 75% (EUR 1167
thousand).

The establishment of the joint venture does not have an effect on the outlook of
the Company.

Optomed expects its full year 2024 revenue to grow compared to 2023.

Optomed Plc

Further enquiries

Juho Himberg, CEO, juho.himberg@optomed.com

Optomed in Brief

Optomed is a Finnish medical technology company and a leading manufacturer of
handheld fundus cameras and screening software. Optomed combines handheld fundus
cameras with software and artificial intelligence with the aim to transform the
diagnostic process of various diseases, such as rapidly increasing diabetic
retinopathy. Optomed has offices in Finland, the US and China and the company's
products are sold via various sales channels in over 60 countries globally

www.optomed.com