Audientes A/S and Shenzhen Hengtong Partner Co. Ltd. agrees Letter of Intent to form Joint Venture

Wed, Apr 03, 2024 16:00 CET

Company announcement no. 11-2024
April 3, 2024

Today, Audientes A/S and Shenzhen Hengtong Partner Co. Ltd. Announce Joint Venture Collaboration in the Hearing Industry

Audientes A/S (“Audientes”), a Danish manufacturer of affordable, self-fitting hearing aids and hearables, and Shenzhen Hengtong Partner Co. Ltd. (“Hengtong”), an investor in Audientes and distributor in China of Audientes hearing products and other medical accessories and products, are pleased to announce their intentions to form joint venture collaboration in the creation of hearing aids and hearables.

Strategic Collaboration for Enhanced Market Presence

The joint venture, set to be established in China, is poised to operate as a profitable commercial entity, jointly operated by Audientes and Hengtong. The core objective is to leverage Audientes' innovative hardware and software platform technology and product creation experience in combination with Hengtong's operational and distribution expertise. This collaboration aims to deliver advanced yet affordable hearing solutions, tapping into the vast potential of the Chinese market.

The parties have signed a Letter of Intent outlining the key terms and conditions of the joint venture agreement and their respective contributions and responsibilities. This includes the rights of both parties to commercially exploit the products created in the joint venture, as well as the collaboration model for approvals and sales in different markets. Audientes will provide its software platform license and hardware reference designs, product design and development capabilities, audiology and hearing expertise, and support for the manufacturing and registration processes. Hengtong will contribute funds for operations and management, medical product registration, protection of intellectual property rights, and technical services.

Key Benefits of the Joint Venture:

Boosted Market Competitiveness: At the heart of this partnership is a drive to substantially elevate our market competitiveness within China, bridging Audientes' innovative technology with Hengtong's knowledge and access in the local market.
Accelerated User Satisfaction and Localization: Our partnership is set to fast-track product localization, aligning our hearing solutions with the distinct preferences of the Chinese market.
Streamlined Medical Device Approvals: Our collaborative efforts strategically aim to simplify and speed up the process for obtaining medical device approvals in China and elsewhere.
Expanded Sales Channels and Platforms: The venture is designed to broaden our collaboration across a variety of sales channels and platforms, thereby enhancing our market presence and customer accessibility.
Government Procurement Initiatives: With the joint venture, we aim to participate in Chinese government procurement initiatives, leveraging the considerable reach and impact of national health projects.
Support from Government Investment Funds: By aligning our operations with the needs of the local market, we enhance the prospect of garnering support from government investment funds.
Diversification into New Business Areas: The venture goes beyond just hearing aids; it opens the door to related business sectors, capitalizing on the pooled expertise and resources of Audientes and Hengtong.

Moving Forward

Following the signing of the Letter of Intent, our focus is on finalizing formal agreements and immediately commencing activities such as developing a new smart hearing aid, exploring manufacturing options, and formulating marketing and sales strategies. We aim to launch these innovative products in China and other priority markets as early as possible in 2025.

Both Audientes and Hengtong are fully committed to complying with all legal requirements and obtaining the necessary regulatory approvals. Our collaboration is a testament to our dedication to making a positive impact in the hearing industry globally, and particularly in the Chinese market.

This joint venture marks a significant milestone, bringing together the strengths of Audientes and Hengtong to create a new actor in the hearing industry, poised to enhance the lives of individuals with hearing impairments across the world.

For further information, please contact:

Steen Thygesen, CEO

Audientes A/S

Phone: ‭+45 77 34 16 80‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬‬

Email: st@audientes.com

About Shenzhen Hengtong Partner Co. Ltd.

Shenzhen Hengtong Partner Co., Ltd. was established in Shenzhen in 2013. It was founded by a group of people with deep experience in the fields of medicine, finance and marketing. At the beginning of its establishment, the company specialized in the distribution of medical and health products as an agent, with products sold directly to medical institutions and distributed to medical equipment companies in various regions.

During the past 10 years Hengtong has gradually expanded its medical products portfolio from imaging and dialysis products to information systems, interventional therapy and rehabilitation products. The company has also expanded its business scope from medical health to artificial intelligence, digital electronics etc. Sales channels include hospitals, medical equipment companies, pharmacy chain stores, digital chain stores, community centers and online platforms. Partners include the world’s top 500 enterprises, world-class retail groups, China's largest Internet communication platform, China Disabled Persons’ Federation etc.

For additional information please refer to the company’s website: www.htbnsz.com.

About Audientes A/S

Audientes A/S is a Danish hearing health company specializing in smart, self-fitting and affordable hearing aids and advanced hearables. Audientes’ unique hearing aid solution, Ven™ by Audientes, is available for purchase in the Indian and Nepalese markets and will be introduced in other markets in the coming years. Companion by Audientes is an advanced hearable, a consumer electronics product, that is commercially available in Europe and later in 2024 in Japan, China, and other markets.

Audientes’ mission is to make high-quality hearing aids and hearables for hearing improvement or hearing enhancement accessible to everyone who needs them globally. Audientes is listed on Spotlight Stock Market Denmark (AUDNTS) and headquartered in Copenhagen, Denmark with a subsidiary in Hyderabad, India and Tokyo, Japan.

For additional information please refer to the company’s websites, www.audientes.com, www.audientes.eu, or www.audientes.in.

This disclosure contains information that Audientes is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 03-04-2024 16:00 CET.