Genertec Universal Medical Group Company Limited (“Universal Medical”, HK.2666) entered into a cooperation agreement with AECC Xi’an Aero-engine Ltd. (中国航发西安航空发动机有限公司, “Xi’an Aero-engine Group”) in connection with the formation of a joint venture, whose registered capital will be contributed by Universal Medical with cash and Xi’an Aero-engine Group with assets related to hospital management, respectively. The Joint Venture, held by Universal Medical and Xi’an Aero-engine Group as to 78.57% and 21.43%, respectively, will operate Xi’an Aero-engine Hospital (西航职工医院). The cooperation marked the practical implementation of SOE hospital reform. In future, Xi’an Aero-engine Hospital will coordinate with different Universal Medical hospitals in Northwest China to upgrade the general healthcare service level in the area.

Aero Engine Corporation of China (中国航空发动机集团有限公司, “AECC”), the largest shareholder of Xi’an Aero-engine Group, is a military industrial enterprise directly under central government of People’s Republic of China and co-established by 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), State-owned Capital Operation and Management Center of Beijing (北京国有资本经营管理中心), Aviation Industry Corporation of China, Ltd. (中国航空工业集团有限公司) and Commercial Aircraft Corporation of China, Ltd. (中国商用飞机有限责任公司). Xi’an Aero-engine Hospital, located in Weiyang District, Xi’an City, with an actual capacity of 300 beds, is a Grade II Class A comprehensive hospital administered by Xi’an Aero-engine Group with various functions including medical treatment, research, prevention and emergency. It is the only national-level “Baby Friendly Hospital” and enjoys the diagnosis qualification of occupational diseases verified and issued by the health department of Shaanxi Government.

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. The cpmpany keeps answering the call of national policies, creating welfare to local residents with quality healthcare services and proactive to implement more tasks during the SOE hospital reform.

In future, based on the epidemiology research in Xi’an City and north-west of China, the present condition of Xi’an Aero-engine Hospital and the predictions on future medical development, Universal Medical will plan the development of the hospital and introduce quality medical resources to enhance clinical departments, improving comprehensive strengths and brand influence to lay a solid foundation for the development of the hospital and contribute to the wellbeing of residents in Northwest China.