HarMoniCare Medical Acquires 51% Equity Interest of Nantong Hemeijia

Wednesday, 12 July 2017, 10:02 HKT/SGT

Consummating Business Blueprint by Entering Yangtze River Delta Area

HONG KONG, July 12, 2017 - (ACN Newswire) - Harmonicare Medical Holdings Limited (together with its subsidiaries, "HarMoniCare Medical" or the "Group", Stock code: 1509.HK), the largest private obstetrics and gynecology specialty hospital group in China, was pleased to announce that Beijing He An Da Management Consulting Co., Ltd ("Bejing HAD"), a wholly-owned subsidiary of the Group, entered into an equity transfer and capital injection agreement ("Acquisition Agreement") with Nantong Hemeijia Obstetrics and Gynecology Hospital Co., Ltd. ("Nantong Hemeijia"), for 51% equity interest acquisition. Nantong Hemeijia will become a non-wholly owned subsidiary of the Group upon completion of acquisition. According to the Acquisition Agreement, Bejing HAD agreed for a total consideration of RMB 299,755,100 on the Acquisition, of which RMB32,000,000 was for equity interest acquisition on, and RMB267,755,100 for capital injection to Nantong Hemeijia.

Established in 2007, Nantong Hemeijia is a for-profit Grade II hospital located in Nantong, Jiangsu Province, providing private obstetrics and gynecology specialty hospital services. Nantong Hemeijia has a first-class medical team, which consists of more than 200 medical staff, and among them 74 have middle or senior professional titles. Mr. Miao Xudong, the dean of Nantong Hemeijia, is also the vice-chairman of Nantong Medical Association. From 2000 to 2015, Mr. Miao served as the dean and secretary of the party committee of Nantong First People's Hospital, with rich management experience. Nantong Hemeijia has been included in the governmental, rural and maternal medical insurance coverage. It is also a Baby Friendly Hospital certified by NHFPC in 2015. In order to satisfy the increasing market demands, the existing shareholders and the management have formulated business plan prior to the Acquisition Agreement, including the construction of a new high-end obstetrics and gynecology hospital with gross floor area of approximately 50,000 square meters with 400 beds. The new hospital is located in Chongchuan District in Nantong, with superior geographical position. The project has been categorized as "speed-up social medical project" by both Nantong municipal and district governments, and expected to be completed before February 2021.

Mr. Lin Yuming, Chairman, Executive Director and President of HarMoniCare Medical said, "Nantong Hemeijia is a company with good track record of business performance, with business philosophy highly aligning with the Group. The Acquisition will allow the Group to enter the market of the Yangtze River Delta area in the PRC efficiently and further expand the geographical coverage of the Group's hospitals. The Acquisition is also an important strategic deployment in the Yangtze River Delta Area for the Group. In future, The Group will continue to consummate our business blueprint by selecting appropriate projects in line with our strategic planning and enhancing investments on M&A, so as to reinforce our leading market position and achieve fruitful return to our shareholders."

About Harmonicare Medical Holdings Limited
HarMoniCare Medical is the largest private obstetrics and gynecology specialty hospital group in China. According to Frost & Sullivan, HarMoniCare Medical ranked the top in terms of both group revenue in 2013 and the number of hospitals by the end of 2013 among all private obstetrics and gynecology specialty hospital groups in China, with a market share of approximately 13.0% by group revenue, a double of the second largest counterpart in the segment. HarMoniCare Medical is one of the earliest entrants in the private healthcare service market in China. HarMoniCare Medical has established a highly standardized and replicable business model for branded chain hospitals with ownership and management control, so as to ensure effective execution of the Group's business plans and strategies throughout its chain. HarMoniCare Medical has demonstrated its capabilities to adopt its business model to different regions in China.

For more information: http://www.hemeiyl.com.

This press release is issued by Porda Havas International Finance Communications Group on behalf of Harmonicare Medical Holdings Limited. For enquiries, please contact:

Porda Havas International Finance Communications Group
Briar Lui +852 3150 6721 briar.lui@pordahavas.com
Angela Shi +852 3150 6778 angela.shi@pordahavas.com
Fay Zhang +852 3120 6514 fay.zhang@pordahavas.com
Fax: +852 3150 6728

Topic: Press release summary Sectors: Daily Finance, Healthcare & Pharm
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