Yuwell

completed

Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (“Yuwell” or the “company”) which started operations in 1998 in Danyang, Jiangsu Province, is a leading medical device manufacturer in China (https://www.yuwell.com/index_en.php). Yuwell is listed on the Shenzhen Stock Exchange and has 500+ product categories for home and clinical use. The group’s global manufacturing center is located at Danyang, Jiangsu Development Zone, China. The company has 5 manufacturing bases including 2 in Danyang (Yun Yang: original plant, and He Yang: new plant), one each in Suzhou, Shanghai and Germany; as well as a number of Research & Development (R&D) centers including in Danyang, Suzhou, Shanghai, Nanjing, and Germany. The company produces homecare and medical clinical products including respiratory devices such as ventilators, nebulizers, and oxygen concentrators, and diagnostic devices such as thermometers, glucometers and disinfection products for hospitals. The company plans to substantially increase its production capacity including that of ventilators and oxygen concentrators, through: (1) expanding its key manufacturing base in Danyang in Jiangsu Province, which will involve installation of manufacturing machinery in a new building within the existing He Yang plant footprint, expected to be complete in 2023; and (2) by potentially exploring investments in healthcare related entities in China and in other countries (together the “project”). IFC is proposing a US$150 million A Loan to Yuwell to fund the project, with IFC’s loan proceeds to be used primarily for: (1) the production of COVID-19 related products and capital expenditures at the company’s new plant in He Yang; and (2) with a portion of the proceeds possibly utilized towards supporting the company’s potential future investments (including but not limited to those in areas of research and development) in healthcare entities (which are not located in or linked to Xinjiang province, China, Myanmar, and other fragile and conflict states (FCS) or conflict areas of non-FCS countries)