2 June, 2015, Shanghai Yicheng Hospital Investment Management Company Limited (“Shanghai Yicheng”), a wholly owned subsidiary of Shanghai Fosun Pharmaceutical (Group) Co.,Ltd. (“Fosun Pharma”), signed a cooperation framework agreement with Yulin Medical Group. Based on the agreement, both parties will fund the establishment of Yulin Medical Group Limited Company (“New Yulin Medical Group”); Yulin Medical Group owns 51% of New Yulin Medical Group’s share while Shanghai Yicheng owns 49%.

“This will further improve Fosun Pharma’s strategic layout of medical services,” said Chairman of Fosun Pharma Mr. Chen Qiyu, “Fosun Pharma will further put the public hospital reform and reorganization with participation of private capital into practice, build mixed-ownership medical service institutes, establish a first-class regional medical group geared to international standards of China, and push forward the development of medical service business.”

Yulin Medical Group is the key institute for Yulin Municipal People's Government’s major medical investing and financing projects, assuming the function of Yulin Municipal People’s Government’s investing in public hospitals. Yulin Medical Group manages Yulin No. 1 People’s Hospital and Yulin No. 3 People’s Hospital, as well as medical institutes in Yudong New District.

Reportedly, Yulin Medical Group’s advantages lie in regional discipline construction and expert teams, operating 5 provincial-level key specialty departments (including the only Chest Pain Center in Guangxi Province) and 7 municipal-level key specialty departments. Medical institutes under Yulin Medical Group currently operates approximately 1,500 bed units with bed utilization rate of over 100% throughout the year, giving approximately 1.34 million out-patient consultations annually with about 59,900 patients receiving in-patient services. Yulin No. 1 People’s Hospital is the core hospital under Yulin Medical Group, which currently has developed into a comprehensive 3A-tier hospital integrating medical treatment, first aid service, research, teaching, prevention and healthcare, as well as rehabilitation. The hospital is one of the 500 large-scale comprehensive hospitals approved by Ministry of Health, and is the hospital for clinical education for the graduate school of Guangxi Medical University.

According to the agreement, after the establishment of New Yulin Medical Group, Yulin No. 1 People’s Hospital and Yulin No. 3 People’s Hospital will become wholly owned affiliated medical institutes under New Yulin Medical Group, while the nature of the two hospitals still remains at non-profit public medical institutes. According to future development demand, New Yulin Medical Group may invest in establishing high-end hospitals, specialty hospitals, healthcare and medical institutes for nourishing and care for the elderly, general hospitals and so on.”

General Manager of Yulin Medical Group Mr. Guan Yingyong stated, “The cooperation will contribute to the combination of both parties’ superior resources, and to establishing modern hospital management and operating models. New Yulin Medical Group will make the best of its advantages in hospital management, expert resources and capital strength and actively develop a multi-layer healthcare service industry, so as to satisfy the demand for health from people in Yulin City and its surrounding regions.”