The epidemic had a great impact on the first half of the year, and June had already returned to the same level as last year. At the SPDB online forum on July 15, we invited Ms. Huang Shan from the board office of China Resources Medical and Mr. Su Yaofeng, the company secretary, for an investor exchange. The number of patients treated in general hospitals in January-June was affected. The number of patients treated in general hospitals began to rise in May, and the average cost growth rate was high, so June had basically returned to the same period last year on the revenue side. The second wave of the Beijing epidemic had a great impact on Jiangong Hospital, which is close to the new outbreak site, while other regions were relatively less affected.
Two major joint ventures are progressing smoothly. 1) On June 28, a joint venture organization and joint venture management company was established with Beijing Coal Group. The two parties signed a restructuring agreement. China Resources Cash invested 49%, and Beijing Coal accounted for 51%. Jingmei Hospital went from being an IOT hospital to the host hospital. The company charged 49% of management fees and supply chain fees, dating back to January 1, 2020. 2) In December last year, the company invested 250 million yuan in cash to hold 75% of the shares and set up a joint venture with Sinotruk Group. At present, Jinan Heavy Duty Truck Hospital has completed commercial restructuring. It is a second-tier general hospital with 450 beds, which will be reflected in listed companies.
The state-owned hospital reform is expected to be completed in the first half of 2021 at the latest. Currently, only sporadic state-owned enterprises have not completed divestment of hospitals; it is expected that they will be completed this year or at the latest in the first half of next year. Compared with the previous round, this round of divestment of state-owned enterprises was mainly hospitals with the right to host, and companies were also met with less resistance. The company's investment standards for the target target have not changed, including IRR ≥ 10%, good geographical location and health insurance level, etc. In addition to general hospitals, the company will also build six university clusters in the future, including orthopedic trauma, brain medicine, and rehabilitation. Early general hospitals will also have good traffic entry points.
The company will rely on 39 Neurology to build a brain hospital group. The 39 Brain Hospital is well known in the region and has a lot of traffic, but its development is limited by insufficient physical space. The company built Zhongneng in two hospitals in Guangzhou and Nanning, Guangxi, which it acquired in 2018, to strengthen the construction and scale of psycho-behavioral and neurological specialists, and plans to complete for-profit restructuring.
In terms of outreach, sites were selected for mergers and acquisitions or the construction of new hospitals around Guangzhou to complete the expansion of the 39 brain department. In the end, 2 for-profit hospitals+2 non-profit hospitals were formed within 3-5 years, with an increase of about 900 beds, serving the Greater Bay Area and Southeast Asia.
Build a cloud hospital management platform and a remote diagnosis and treatment platform. The company has begun to establish an Internet hospital network in its own hospitals, set up a cloud hospital management platform and remote diagnosis and treatment platform, vigorously improve the hospital's level of informatization, facilitate hospital services through the Internet, solve patient inconvenience during the epidemic, improve the efficiency of offline medical services, and increase user stickiness. However, when it comes to internet hospital licenses, Guangdong Province's policy is quite supportive. The 39 Brain Hospital has already obtained a license, and qualified hospitals in other regions are also applying.
Other outreach mergers and acquisitions are being incubated. Currently, the Liaoning Health Industry Group project and the Jiangxi energy and medical institution reform project have 13,000 beds. During the China Resources Health incubation process, internal discussions are taking place on the pace and method of injection into listed companies.