Audientes A/S Signs Definitive Agreement with Shenzhen Hengtong Partner Co. Ltd. to Establish Joint Venture
Company announcement no. 27-2024
August 14, 2024
Today, Audientes A/S of Denmark and Shenzhen Hengtong Partner Co. Ltd. of China have signed a definitive agreement to establish a Joint Venture company in the Hearing Industry.
Audientes A/S (“Audientes”), CVR 36047631, a Danish innovator in the field of affordable, self-fitting hearing aids and hearables, and Shenzhen Hengtong Partner Co. Ltd. (“Hengtong”), investor in Audientes and distributor of its hearing products in China, are pleased to announce the signing of a definitive agreement to establish their joint venture in the hearing industry. This milestone follows the Letter of Intent previously announced on April 3, 2024, and marks the official decision to pursue the formation of the joint venture company, which will commence operations in the near future.
Establishment and Operational Focus
The joint venture will be based in Shenzhen in China and is set to function as a profitable commercial entity. This collaboration is designed to integrate Audientes' hardware and software technology with Hengtong's deep operational and distribution expertise. The joint venture company will focus on the development and commercialization of advanced yet affordable hearing solutions, specifically tailored for the expansive Chinese market where it will market and sell its products in B2B and B2C channels.
Audientes will provide its software platform and hardware reference design licenses, 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.
The agreement to establish and operate the joint venture addresses also 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.
The parties will jointly contribute to the initial share capital of the joint venture based on their respective ownership stakes of the joint venture company, where Hengtong has 60 percent and Audientes 40 percent of the equity at the point of formation. Audientes’ capital contribution is based on hardware and software platform licenses as well as electronic components from its existing inventory for use in the products the joint venture will have manufactured.
Strategic Goals and Market Impact
The joint venture aims to achieve several key objectives:
- Boosted Market Competitiveness: At the heart of this partnership is a drive to substantially elevate our market competitiveness within China, bridging Audientes' innovative technology and products with Hengtong's knowledge and access in the local market.
- Accelerated Product Localization: The partnership will expedite the localization of hearing products, ensuring they meet the unique needs and preferences of Chinese consumers.
- Streamlined Medical Device Approvals: The joint venture will strategically work to simplify and expedite the approval process for medical devices in China and other international markets.
- Expansion of Sales Channels: Leveraging a variety of sales platforms and channels, the joint venture will enhance its market presence and accessibility to customers.
- Participation in Government Initiatives: The joint venture aims to participate in Chinese government procurement initiatives, benefiting from national health projects.
- Support from Government Investment Funds: The local presence and alignment with local market needs increases the potential for support from government investment funds.
- Diversification into New Business Areas: Beyond hearing aids and hearables, the joint venture will explore opportunities in related sectors, capitalizing on the combined expertise of Audientes and Hengtong.
Next Steps
Following the signing of the definitive agreement, the parties will immediately begin the establishment of the joint venture company. Its initial operational activities include the development of the Chinese version of the affordable VenTM self-fitting medical grade hearing aid, and the formulation of marketing and sales strategies.
The launch of Ven in China is anticipated in China in mid 2025 and will follow the imminent introduction of Audientes advanced hearable product in China trademarked ‘ZhiYingYou’, a fully localized version of ‘Companion by Audientes’ marketed and sold by Hengtong in Greater China.
Comment by Steen Thygesen, CEO, Audientes A/S.
“We are thrilled to officially agree this joint venture with Shenzhen Hengtong Partner Co. Ltd., a partnership that holds great potential for both our companies and our shareholders. This joint venture represents a significant step forward in our mission to provide high-quality, affordable hearing solutions to a global audience, with a particular focus on the Chinese market. By combining Audientes' innovative hearing technology and experience with Hengtong’s distribution network and deep market insights, we are not only positioning ourselves to significantly develop our market share in China, but also to accelerate our global growth strategy and drive revenue growth. For our shareholders, this joint venture represents a strategic move that will enhance our market presence, and ultimately, increase shareholder value.”
For further information, please contact:
Steen Thygesen, CEO
Audientes A/S
Phone: +45 77 34 16 80
Email: st@audientes.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.
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. 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.