China Resources Healthcare (01515) fell more than 5% in the afternoon. As of press release, it was down 5.12% to HK$4.26, with a turnover of HK$35.3716 million.
The Zhitong Finance App learned that China Resources Healthcare (01515) fell by more than 5% in the afternoon. As of press release, it was down 5.12% to HK$4.26, with a turnover of HK$35.3716 million.
According to the news, on May 10, China Resources Medical disclosed that its Huai'an Huaiyin Hospital applied to cease operations. According to reports, China Resources Medical acquired a controlling interest in Huaiyin Hospital for 883 million yuan in the first half of 2021. After the acquisition, the hospital only operated for 3 years.
China Resources Medical's announcement explained that after in-depth research on the local medical market and further investigation of the situation at Huaiyin Hospital, the company's management believes that Huaiyin Hospital currently lacks business development opportunities and operating losses will continue for a long time. Compared to continuous operation, the cessation of operation of Huaiyin Hospital is a choice at this stage to minimize the risk of the company's losses and prevention and control projects.
The company said that the shutdown of Huaiyin Hospital will have a certain impact on the Group's business performance in 2024, but considering that Huaiyin Hospital is not expected to be able to reverse losses through operation for a long period of time, the company believes that the shutdown of Huaiyin Hospital's business will benefit the company's future operating performance in the long run. The shutdown of Huaiyin Hospital is expected to have little impact, and the sale of related shares or assets is being considered.