【6 August 2016, Hong Kong】On 5 August 2016, Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun Pharma”) announced that its subsidiary, Shanghai Fosun Hospital Investment (Group) Co., Ltd. (“Fosun Hospital Investment Group”) signed a cooperation agreement with The First People’s Hospital of Yulin, pursuant that both parties agreed to jointly establish “Yulin Cardiovascular Specialty Hospital” and “Yulin Cerebrovascular Specialty Hospital” in order to provide residents in Yulin and surrounding areas with much safety and professional healthcare services of better quality in a more efficient manner.

The First People’s Hospital of Yulin is a class III-A grade general hospital of high level of academic resources that assembles the essence of healthcare, academic study, scientific research and training. Healthcare service is one of Fosun Pharma’s selected businesses for strategic development. Currently, Fosun Pharma has initially completed the strategic layout for healthcare service business that allows the collaboration between high-end healthcare services in developed coastal cities and the specialized and general hospitals located in second and third-tier cities. Fosun Pharma has laid a solid foundation in healthcare service business and carried out the transformation to mixed ownership in the healthcare service industry, which will benefit more patients by creating synergy between social capital investments, the advantages of operating hospitals and the resources of government medical institutions.

According to the agreement, both parties will set up a joint venture to develop mutual strengths and integrate resources. Both parties will jointly establish and operate “Yulin Cardiovascular Specialty Hospital” and “Yulin Cerebrovascular Specialty Hospital” while proactively participating in the reformation of healthcare services in Yulin and Guangxi Zhuang Autonomous Region in all aspects so as to expand and grow various specialties of The First People’s Hospital of Yulin, such as cardiology and cerebrology. Besides, a first-class specialty technology center will be built in Guangxi, which will further enhance the capacity and level of healthcare services. Encouraged by the government on the reformation of public hospitals with social capital investments, the above measure has been taken to make greater efforts in the overall reformation of public hospitals in urban areas and solve the problems of long queues and expensive fares for medical treatment. It demonstrates the development of advantageous medical resources and signifies a milestone for The First People’s Hospital of Yulin of being one of the third batch of public hospitals to carry out national reformation in selected cities.

In recent years, as aging population and urbanization accelerate, there is an increasing number of patients who suffer from cardiovascular and cerebrovascular diseases. Currently, cardiovascular disease is the top killer in China that accounts for the total death rate of urban and rural residents. Due to cardiovascular and cerebrovascular diseases, increasing burden has been imposed on the industry. The establishment of Yulin Cardiovascular and Cerebrovascular Specialty Hospital will allow Fosun Pharma to put great efforts in the prevention and medical treatment on cardiovascular and cerebrovascular diseases, which is vital to the reduction of the ratio of incidence, disability, recurrence and mortality on cardiovascular and cerebrovascular diseases of local residents.

Since 2010, Fosun Pharma has tapped into the high-end healthcare service market in China through the strategic cooperation with Chindex. Under the cooperation, both parties have promoted the development of healthcare services provided by “United Family”, a high-end healthcare service brand, across the country. Meanwhile, by investing in Jimin Cancer Hospital, Guangji Hospital, Zhongwu Hospital, Chancheng Hospital, Wenzhou Geriatrics Hospital, Qingdao Shanda Qilu Hospital (under establishment), Taizhou Zhedong Hospital and other hospitals, Fosun Pharma has entered the specialized and general healthcare service market in China. Fosun Pharma will continue to provide better medical technology and healthcare service process to the public and satisfy the greater and various demands for medical and healthcare services from the public.

About Shanghai Fosun Pharmaceutical (Group) Co.,Ltd.
Established in 1994, Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun Pharma”; stock code: 600196.SH, 02196.HK) is a leading healthcare Group in the PRC. Fosun Pharma strategically covers important segments of the healthcare industry value-chain, including pharmaceutical manufacturing and R&D, healthcare services, medical diagnosis, medical devices manufacturing and agent, as well as pharmaceutical distribution and retail, making contribution to improving people’s health. Fosun Pharma maintains a National Recognized Enterprise Technology Centre and a highly capable international R&D team, focusing on innovation and research of therapeutic areas including cardiovascular system, central nervous system, blood system, metabolism and digestive tract system, anti-infection and anti-tumor. With its commitment to innovation for good health and creating a better future, Fosun Pharma will continue insisting on the strategic development approach of “organic growth with external expansion and integrated business operation”, striving to be one of the first-class enterprises in the global healthcare market.