China Resources Medical (01515.HK) announced that China Resources Hospital Holdings, a wholly owned subsidiary of the company, had been formally notified by the property Rights Trading Center on August 21, 2020 that it had successfully acquired the remaining 25% stake in Jinan heavy truck Hospital Co., Ltd. at a consideration of RMB 84.687 million in the relevant listing process of the property Rights Trading Center.
Jinan heavy truck Hospital Co., Ltd. was formerly known as China heavy truck Group Co., Ltd. Hospital. The hospital, located in Jinan City, Shandong Province, is a second-class first-class general hospital. After the establishment of the joint venture company, it won the right to run the hospital and related assets of China heavy truck Group Co., Ltd., and completed the for-profit restructuring together with the hospital in March 2020. Since the completion of the restructuring, Jinan heavy truck Hospital Co., Ltd. has become a for-profit general hospital. At the date of the announcement, China Resources Hospital Holdings and Sinotruk Group currently own 75% and 25% of Jinan heavy truck Hospital Co., Ltd., respectively, and are subsidiaries of the group.
Jinan heavy truck Hospital Co., Ltd. is expected to open a total of 450 beds in the new and old hospital district, of which the new hospital district was opened in early 2018. At present, apart from providing medical services to employees and family members of Sinotruk Group, the hospital also serves the residents of the nearby areas. it has an annual discharge of more than 6000 and an annual outpatient volume of more than 450000. The dominant specialty of the hospital is the Department of Cardiology, and other important departments include vascular surgery, traditional Chinese medicine and rehabilitation.
The acquisition is an important measure taken by the group to further implement the state ministries and commissions on deepening the reform of the auxiliary assets of state-owned enterprises, and it is helpful for the seller's Sinotruk Group to achieve the separation of main and auxiliary and capable main business. at the same time, it is also an important layout for the group to continuously develop the medical and health industry and consolidate and expand the medical business in Shandong region and provincial capital cities. Through the acquisition, Jinan heavy truck Hospital Co., Ltd. will fully link up with the group's medical and management resources, which is conducive to its business development, stable workforce, and asset maintenance and appreciation. After the completion of the acquisition, Jinan heavy truck Hospital will become a wholly-owned subsidiary of the group.