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, 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 first quarter-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 second quarter or third quarter.

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.