Ray China, Fundraising for Expansion of Business in China

[Asia Economy Reporter Hyungsoo Park] Ray announced on the 13th that its Chinese subsidiary, Ray China, raised funds through a paid-in capital increase to expand its business and commence construction of a factory in China.

A Ray official stated, "This is the first round of funding, and a second round will be conducted within the year," adding, "Ray China will collaborate with overseas partners such as Ascent Capital Management to grow into a global dental group."

In addition to the ongoing digital diagnostic system and treatment solution businesses, new businesses such as clear aligners, DSO, and implants will be pursued.

The first investment amount is approximately 5.4 billion KRW, and Ray China will aggressively expand investments using Chinese capital. The funds will be used for establishing the Chinese factory, local M&A (mergers and acquisitions), expanding sales networks, and new business ventures.

Chinese partners participating in Ray China's paid-in capital increase will collaborate in various areas including sales and marketing, new business, M&A, investment, and initial public offering (IPO) within China to promote local business.

Previously, Ray established its Chinese subsidiary, Ray China, on December 16 of last year. Ray China is currently expanding its local business, including signing a contract on July 20 this year to acquire Beijing Xuesa Medical Technology Co., Ltd. (hereinafter referred to as the Chinese distribution company), a local sales partner, for 25.5 billion KRW.

Lee Sang-cheol, CEO of Ray, said, "This is a stable investment based on Ray China's sales," and added, "We plan to expand local market share through a thorough localization strategy in the Chinese market, strengthened products and product lineup, and solutions." He continued, "Along with the IPO in China, this will serve as a foothold to achieve Ray's sales target of 1 trillion KRW."