On 14 September 2018, Genertec Universal Medical Group Company Limited (“Universal Medical”, 2666.HK) entered into a cooperation agreement in relation to restructuring of Yantai Port Hospital with Yantai Port Group Co., Ltd. (“Yantai Port Group”). Leaders from Universal Medical, Yantai Port Group and Yantai Port Hospital attended the signing ceremony.

The two sides will co-establish a joint venture whose registered capital will be contributed by Wiseman Hospital Investment Management (Tianjin) Co., Ltd. (融慧濟民醫院投資管理（天津）有限公司,“Wiseman”), a wholly-owned subsidiary of Universal Medical, with cash and Yantai Port Group with assessed net assets of Yantai Port Hospital, respectively. Upon its establishment, the joint venture will be held by Wiseman and Yantai Port Group as to 65% and 35%, respectively. All of the practicing licenses, qualifications, management team and business resources of Yantai Port Hospital will be succeeded by the joint venture.

Universal Medical, as the core entity to operate medical and health business under its controlling shareholder Genertec, intends to increae beds and introduce equipment for Yantai Port Hospital. It will also further enhance medical technology and service capacity of Yantai Port Hospital in a systematic way by upgrading disciplines, introducing advanced technology, training talents, optimizing managerial mechanisms, etc.

Yantai Port Group is a large-scale local state-owned enterprise directly under the State-owned Assets Supervision and Administration Commission of the People’s Government of Yantai City. Yantai Port Hospital, with a certified capacity of 500 beds, is a non-profit Grade II Class A hospital administered by Yantai Port Group and enjoys the reputation with its comprehensive medical technology in the local area.

As a public company controlled by a stated-owned key enterprise with medical and health as its core business, Universal Medical’s decision to cooperate with Yantai Port Group, as an alliance among central SOEs and local SOEs, is in line with the national policies of reform on state-owned enterprises-affiliated hospitals. The company proactively responds to national policies and will spare no efforts to promote the comprehensive capability and service quality of Yantai Port Hospital, actively building it into a leading Grade III Class A medical institution with clinical strengths.