On 31 January 2019, Genertec Universal Medical Group Company Limited (“Universal Medical”, 2666.HK) entered into a cooperation agreement with Panzhihua Iron and Steel (Group) Company Limited (攀钢集团有限公司, “Pangang Group”) and its wholly-owned mining subsidiary, in connection with the formation of a joint venture to manage and operate Pangang Group General Hospital (攀钢集团总医院, “General Hospital”) and Pangang Group Chengdu Hospital (攀钢集团成都医院, “Chengdu Hospital”). The joint venture will be held by Universal Medical and Pangang Group with its mining subsidiary as to 53.30% and 46.7%, respectively. The formal cooperation marks the continuous stride of Universal Medical in its SOE-hospital M&A campaign and gradually improvements in its national health industry layout.

Pangang Group is a large-scale state-owned steel-making enterprise located in Western China. General Hospital, with a history of development for almost 50 years and register of 1,073 beds, is a Grade III Class A comprehensive hospital with various functions including medical treatment, research, training, rehabilitation, prevention and emergency. In 2018, General Hospital was certified as “Precision Medical Center of 13th5-Year Plan Key R&D Projects”. Urology Surgery Dept, Burns Surgery Dept, General Surgery Dept and Cardiology Dept have been rated as A level key departments in Sichuan Province. Chengdu Hospital, with an actual capacity of 364 beds, is a Grade II Class A comprehensive hospital and enjoys geographical advantage in central Chengdu City.

Universal Medical is a leading medical and health conglomerate in China and core entity to operate health business under China General Technology Group, one of the three state-owned key enterprises which focus health industry. Leveraging on its diversified quality healthcare resources around the world and financial strength, the company cooperates with Pangang Group, actively implementing the national health reform policy.

In future, with Pangang Group, Universal Medical will make General Hospital the key medical resources in the South-West China layout by a series of measures such as investment, technology introducing and operation upgrading to improve digitalization system, infrastructure and service quality. Three top departments will be established and several provincial-level departments will be improved. The leading health and medical group to-be is committed to serving local residents with quality medical care.