On 28 March 2019, Genertec Universal Medical Group Company Limited (“Universal Medical”, HK.2666) entered into a formative cooperation agreement with China Railway State Asset Management Co., Ltd. (中铁国资资产管理有限公司, “CR State Asset”) in connection with the integration of certain medical institutions affiliated with China Railway First Group Co., Ltd. (中国中铁一局集团有限公司, “CRFG”). A joint venture to be established in Xi’an, Shaanxi Province, with Universal Medical being its controlling shareholder, will become the new promoter and manager of the CRFG hospitals in replacement of the original promoter and manager. The cooperation marks another big stride on the work to respond national healthcare reform policies and take over SOE hospitals.

The medical institutions affiliated with CRFG in relation to the resources integration include CRFG Xi’an Central Hospital(中铁一局集团西安中心医院), CRFG Central Hospital (中铁一局集团中心医院), CRFG Fifth Company Hospital (中铁一局集团第五工程有限公司职工医院), CRFG Xianyang Central Hospital (中铁一局集团咸阳中心医院) and CRFG Second Social Service Center Tangshan Hospital (中铁一局集团社会事业服务第二分中心唐山医院), with actual capacity of over 1000 beds in total.

During the cooperation, the two sides stuck to several principles of “overall planning, promoting development, smooth transition and legal implementation” to further trigger vitality, enhance technology strengths and promote construction standard of hospitals, boosting the rapid development and guaranteeing the legal interests of hospital staff. With the aging society and great encouragement to health industry from government side, Universal Medical will make differentiated positioning design to implement clinical department upgrade, digitalization construction and managerial mechanism optimization in these hospitals.