On 19 December 2018, Genertec Universal Medical Group Company Limited (“Universal Medical”, HK.2666) entered into a cooperation agreement with China XD Group Co., Ltd. (中国西电集团有限公司, “XD Group”) in connection with the formation of a joint venture to operate Xi’an XD Group Hospital (西电集团医院, “XD GroupHospital”). Universal Medical will contribute with cash and XD Group will contribute with the assets of XD Group Hospital, respectively. The registered capital of the joint venture, upon its establishment, will be held by Wiseman and XD Group as to 55% and 45%, respectively. The two sides are committed to establishing a leading and reputed integrated medical center in a central city of Northwest China, bringing welfare to surrounding residents with quality healthcare services.

XD Group is a large-scale central state-owned enterprise directly under the State-owned Assets Supervision and Administration Commission of the State Council (国务院国有资产监督管理委员会). XD Group Hospital, with register of 748 beds and an actual capacity of 900 beds, is a Grade III Class A comprehensive hospital administered by XD Group with various functions including medical treatment, emergency, training, research, rehabilitation, prevention, community health and physical examination. XD Group Hospital boasts a complete system of subjects and advanced medical equipment, enjoying the reputation in Shaanxi Province with its comprehensive medical technology in gynecology & obstetrics and neurology. The XD Group Hospital Chest Pain Center, which is directed by cardiovascular department, has got initial certification of national chest pain center network.

Universal Medical, as a leading health and medical conglomerate, acts as the core entity of healthcare business under China General Technology Group, one of the three central state-owned enterprises which focus on health industry. Leveraging on its diversified domestic and overseas healthcare resources and financial strengths, Universal Medical cooperates with XD Group, proactive to implement the SOE hospital reform.

After the cooperation, Universal Medical will follow the development outlook of “Strong Specialties, Solid Comprehensive Strengths and Multi-platform” and make XD Group Hospital key medical resources in the north-west layout. On one hand, Universal Medical will establish a comprehensive medical institution with several national well-known outstanding specialties in a central city by introducing capital, medical resources and optimized remuneration mechanisms, and expanding open bed space for XD Group Hospital. On the other hand, XD Group Hospital will closely connect with preliminary and community health institutions to expand its local influence and cooperate with different hospitals under Universal Medical to lead the Northwest China in healthcare services, creating welfare for local residents and promoting the Healthy China Strategy.