To acquire a 60% shareholding in Foshan-based, Chancheng Hospital for RMB693 million, Accelerates development in medical services business
[10th October 2013, Hong Kong] Shanghai Fosun Pharmaceutical (Group) Co., Ltd. ("Fosun Pharma" or the "Company"; stock code: 600196-SH, 02196-HK; and, together with its subsidiaries, the "Group"), a leading healthcare company in the PRC, announced that its wholly-owned subsidiary, Shanghai Yicheng has signed an agreement to acquire a 60% shareholding in Chancheng Hospital in Foshan, Guangdong Province, for a consideration of not exceeding RMB693 million.
According to the agreement, Chancheng Hospital will ensure to realize an annual net profit for each of 2013, 2014 and 2015, respectively RMB90 million, RMB108 million and RMB129.6 million.
This acquisition will add another upper first-Class hospital to Fosun Pharma’s strategic deployment of medical services in China. Chancheng Hospital is located in Foshan, Guangdong, commanding huge influence in Pearl River Delta. The number of outpatient of more than 2 million per year has contributed to its significant market shares in the region.
The President of Chancheng Hospital and a specialist of vertebrae minimally invasive surgery, Mr. Xie Dazhi said, “All medical professionals in our hospital have consented this cooperation, as it echoes well to the development direction of the healthcare industry in China. Chancheng Hospital’s joining of the substantial medical service platform run by Fosun Pharma demonstrates strategic significance in the future development of the healthcare industry in Southern China.
Fosun Pharma has been dedicated to the development of the medical service businesses over the past few years. It has emerged as the largest shareholder of United Family Healthcare, a high-end medical service chain group. The Company has paid huge attention to the merger and acquisition as well as development opportunities in the field of general hospitals and tumour hospitals.
Underpinned by its network - being the largest in China, high degree of brand awareness, high level of internationalization, United Family Healthcare has become the first choice brand in medical services among high-end consumers. Well-known hospitals on Fosun Pharma’s platform include Jimin Tumour Hospital, the first tumour specialist hospital in Anhui Province, Guangji Hospital in Yueyang of Hunan Province and Zhongwu Hospital in Suqian of Jiangsu Province. Guangji and Zhongwu are Class 2 general hospitals with high market position in their respective areas.
Mr. Chen Qiyu, Chairman of Fosun Pharma, said, “I am very glad that we can cooperate with Chancheng Hospital which enjoys high visibility and market influence in the region. Our injection of sufficient resources into the hospital would facilitate the continuous provision of high quality services to patients. This would also enhance the level of scientific research and administration of the hospital, thereby establishing a solid foundation for the Company’s future development in medical services. We will continue to raise the operation scale and management quality of the medical service segment.
“Going forward, the Group plans to position Chancheng Hospital as the hub for expanding our businesses to Pearl River Delta and Southern China, integrating the resources of general hospitals and specialist hospitals, and creating a cluster of top quality hospitals,” Mr. Chen added.
According to the agreement, Chancheng Hospital will ensure to realize an annual net profit for each of 2013, 2014 and 2015, respectively RMB90 million, RMB108 million and RMB129.6 million.
This acquisition will add another upper first-Class hospital to Fosun Pharma’s strategic deployment of medical services in China. Chancheng Hospital is located in Foshan, Guangdong, commanding huge influence in Pearl River Delta. The number of outpatient of more than 2 million per year has contributed to its significant market shares in the region.
The President of Chancheng Hospital and a specialist of vertebrae minimally invasive surgery, Mr. Xie Dazhi said, “All medical professionals in our hospital have consented this cooperation, as it echoes well to the development direction of the healthcare industry in China. Chancheng Hospital’s joining of the substantial medical service platform run by Fosun Pharma demonstrates strategic significance in the future development of the healthcare industry in Southern China.
Fosun Pharma has been dedicated to the development of the medical service businesses over the past few years. It has emerged as the largest shareholder of United Family Healthcare, a high-end medical service chain group. The Company has paid huge attention to the merger and acquisition as well as development opportunities in the field of general hospitals and tumour hospitals.
Underpinned by its network - being the largest in China, high degree of brand awareness, high level of internationalization, United Family Healthcare has become the first choice brand in medical services among high-end consumers. Well-known hospitals on Fosun Pharma’s platform include Jimin Tumour Hospital, the first tumour specialist hospital in Anhui Province, Guangji Hospital in Yueyang of Hunan Province and Zhongwu Hospital in Suqian of Jiangsu Province. Guangji and Zhongwu are Class 2 general hospitals with high market position in their respective areas.
Mr. Chen Qiyu, Chairman of Fosun Pharma, said, “I am very glad that we can cooperate with Chancheng Hospital which enjoys high visibility and market influence in the region. Our injection of sufficient resources into the hospital would facilitate the continuous provision of high quality services to patients. This would also enhance the level of scientific research and administration of the hospital, thereby establishing a solid foundation for the Company’s future development in medical services. We will continue to raise the operation scale and management quality of the medical service segment.
“Going forward, the Group plans to position Chancheng Hospital as the hub for expanding our businesses to Pearl River Delta and Southern China, integrating the resources of general hospitals and specialist hospitals, and creating a cluster of top quality hospitals,” Mr. Chen added.