On December 15, Gelonghui (03689.HK) announced that on December 15, 2023, the company signed an acquisition agreement. According to this, the company has agreed to acquire 70% of the shares of the target company Dongguan Kanghua Hemodialysis Medical Investment Management Co., Ltd. from the seller at a total cost of RMB 7.7 million. The target company, through its subsidiaries, mainly operates hemodialysis clinic centers in China. Upon completion, the target company will become a non-wholly owned subsidiary of the company.
According to reports, the target company is a limited liability company established in China on February 24, 2016. The target company, through its subsidiaries, mainly operates hemodialysis clinic centers in China. Target Group's first outpatient center began operations in 2016. As of the announcement date, Target Group operated 13 hemodialysis centers located in Guangzhou (3), Chengdu (3), Shenzhen (1), Foshan (1), Zhongshan (1), Zhuhai (1), Yangjiang (1), Jieyang (1) and Jiangmen (1), serving more than 700 hemodialysis patients. In 2022, Target Group has performed more than 160,000 hemodialysis operations. Target Group introduced the advanced concepts and technology of the Singapore Hemodialysis Clinic to implement high-quality dialysis and refined chronic disease management. Target Group is a pioneer in introducing “no-harm dialysis”. This program is far more advanced than current Chinese standards, thereby significantly improving the longevity and quality of life of patients with kidney disease.
One of the founders of Target Company was a senior marketing R&D engineer at Kanghua Hospital, and Ms. Wang Yurong, one of the limited partners of Guangzhou Kanghe (holding 15% interest in Target Company), was a senior nurse at Kanghua Hospital and was responsible for hemodialysis related services and management. In the context of this relationship, the Group and Target Group have maintained close cooperation, including frequent sharing of resources and expertise and business promotion in different regions. The company authorized the target group to use the “Kanghua Sunshine” brand, which helps the target group enhance its market position during the development stage.