HONG KONG, June 25 /Xinhua-PRNewswire-FirstCall/ -- The Board of Directors of Golden Meditech Company Limited (the "Company"; stock code: 8180.HK) is pleased to announce today that the Company has made significant progress in entering China's hospital management market through the acquisition of Topshine Hospital Management (China) Company Limited and Daopei Hospitals Group, the largest private haematologist hospitals with presence in Beijing and Shanghai in China. Upon completion, the company will become the first foreign institution in China granted with a license to manage and provide nationwide management consultancy to hospitals in China.
Pursuant to the terms of the agreement, Golden Meditech will acquire 70% of contributor's interests in the Daopei Hospitals Group and 60% equity interests in Topshine Hospital Management Company (China) Limited for an aggregate cash consideration of HK$830 million.
Once the proposed transaction is completed, Golden Meditech will obtain the rights to manage hospitals nationwide. This marks the first time for a foreign institution to offer nationwide hospital management consultancy in China.
Mr. KAM Yuen, Chairman of Golden Meditech, explains that acquiring the Daopei Hospitals, the largest and most renowned hematologist hospital in China, represents a significant move by the company to optimize its business structures and strengthen its presence in China's healthcare industry. Tremendous synergies will be created with the Company's existing businesses especially in the areas of healthcare services, cord blood stem cells clinical applications and manufacture and sales of medical devices.
Mr. KAM Yuen points out through this acquisition, Golden Meditech will not only gain the opportunity to enter into the high-threshold hospital management industry, but also inherit experienced and seasoned medical staff and management teams, in addition to generating stable earnings. In future, the Company plans to expand the professional hospital management operations in areas of haematologies, tumor and pediatrics through its existing hospital network in a bid to become the largest professional hospital management group in China.
China's Hospital Services Market:
According to statistics, in 2007, China's healthcare services expenditures accounted for less than 5% of the country's GDP (gross domestic product), which is far behind 15% of USA during the same period. In addition, benefiting from the country's booming economy, increase in government healthcare spending to extend the coverage of basic social medical insurance, the improvement in general living standards, and people becoming more health- conscious and expecting higher healthcare services standards, all these factors are believed to lead China's healthcare services industry into golden era period.
However, at present, more than 90% of hospitals in China are state-owned nationwide, and less than 10% are owned by non-state-owned entities. This ratio of 10% is far lower compared with that of most Asian countries, whereas private hospitals account for almost 50% of the market shares. This means that China hospital market has a great market potential for future expansion.
Topshine China: Topshine Hospital Management (China) Company Limited is established by the management team of Daopei and it is the first foreign company allowed to provide nationwide hospital management services in China.
Daopei Hospitals: Headquartered in Beijing with a Shanghai branch, the Daopei hospitals have over 200 hospital beds in Beijing and Shanghai, and the largest number of laminar air-flow wards in Asia.
As a leading specialist hospital for diagnosis and treatment of blood- related diseases and malignant tumors, Daopei Hospitals are renowned to conduct sibling allogeneic cord blood stem cell transplantation, unrelated cord blood stem cell transplantation, umbilical cord blood stem cell transplantation, mismatched haploidentical transplantation, syngenic (twins) transplantation and autologous transplantation. During the past six years, Daopei Hospitals conducted about 690 cases of allergenic cord blood stem cell transplantation with successful implantation rate of 99.67% and overall survival rate of 70%, reaching an international level. The hospitals' reputation attracts numerous domestic and overseas leukaemia patients every year, and currently, their utilization rates of hospital beds exceed 100%.
Mr. LU Dao Pei, founder of the Daopei Hospitals, is a renowned haematologist and the so-called "Father of Bone Marrow Transplant "in China, an elected member of the Chinese Academy of Engineering (Division of Medicine and Health), a committee member of the Academic Committee of Peking University Health Science Center, and the Chief Expert for Haematology, National Key Disciplines in Peking University.
The Beijing and Shanghai Daopei Hospital are few privately-run hospitals, covered by the country's basic medical insurance scheme. In addition, Daopei Hospitals are also the only private specialist hospital endorsed to perform blood stem cell transplants.
Golden Meditech: Founded in 2000 and listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong Limited in December 2001, Golden Meditech is the first hi-tech medical device enterprise that went public outside of the PRC. During the past few years, thanks to its great efforts in innovation and market expansion, as well as its first-mover abilities in capturing the emerging market opportunities, Golden Meditech's medical device, cord blood banking services and natural herbal medicine have all established dominant positions in each of the segments that the company engages in. Going forward, Golden Meditech will continue its pursuit of becoming China's leading integrated medical group through organic growth, acquisition and strategic investment.
For inquiry, please kindly contact the Investor Relations Division,
Golden Meditech Company Limited.
Dennis Haikuan Lu
Investor Relations Manager
Golden Meditech Company Limited (8180.HK)
|SOURCE Golden Meditech Company Limited|
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