On 18 March 2019 (after trading hours), Genertec Universal Medical Group Company Limited (“Universal Medical”) entered into a cooperation agreement with CEC Caihong Group Co., Ltd. (咸阳中电彩虹集团控股有限公司, “CEC Caihong”)  in connection with the formation of a joint venture. The joint venture, whose controlling shareholder will be Universal Medical, will become the new promoter of Xianyang Caihong Hospital (咸阳彩虹医院). The cooperation marks great strategical significance to Universal Medical for coordinated development among hospitals of different levels in Northwest China.

CEC Caihong is a wholly-owned subsidiary of China Electronics Corporation (中国电子信息产业集团有限公司, “CEC”). CEC is a major state-owned enterprise directly under the central government of the PRC, ranking on the Global Fortune 500 List for 8 years in a row. Xianyang Caihong Hospital, with an actual capacity of 579 beds, is a Grade II Class A women and children’s hospital administered by CEC Caihong with various functions including medical treatment, emergency, training, research, rehabilitation, prevention and health management.

Xianyang Caihong Hospital, as a provincial medical center on pediatrics, gynecology and obstetrics, was approved to be included in 3A hospital management system in 2018, and to build the Demonstration Base of Early Child Development in Shaanxi Province, the Child Internal Medicine Center in Shaanxi Province and the Pediatrics Department Quality Control Center in Xianyang. The neonatology department and the child health and rehabilitation department of the hospital is the key clinical departments of Xianyang, with the former being the urgent newborn infants treatment and transfer center. In future, 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 to provide strong support to build a leading women and children’s health center in Northwest China.

The Xixian Area, the largest central agglomeration in Northwest China, locates in the junction of the Northwest Economic Zone and the Central Plains Economic Zone. It leads the whole nation in economy, education and culture with solid education foundation dragging the new strategical industry in Xi’an City. Universal Medical will firmly grasp political and regional advantages to make Xianyang Caihong Hospital join the Universal Medical health group in Northwest China, together with XD Group Hospital, Aero-engine Hospital and hospitals under CR State Asset.