[Caihua Social News] Corning Hospital (02120.HK) announced that the company recently signed an equity acquisition agreement with Bond Orthopaedic Hospital Group Co., Ltd., a shareholder of Yueqing Banger Integrated traditional Chinese and Western Medicine Hospital Co., Ltd. ("Yueqing Boner Hospital"), agreeing that the company would acquire 100% of Yueqing Boner Hospital held by Bond Orthopaedics at a benchmark price of 41.65 million yuan. The final price shall be determined according to the settlement difference of the transaction agreed in the equity acquisition agreement, and the final price shall not be higher than RMB 43.73 million yuan. After the completion of the equity acquisition, the company will directly hold a 100% stake in Yueqing Boner Hospital, which will become a wholly-owned subsidiary of the company.
Yueqing Bond Hospital is a for-profit medical institution located in Yueqing City, Zhejiang Province, China, covering an area of about 5910 square meters and a construction area of about 14800 square meters.
The acquisition plays a strategic role in improving the group's medical service system and expanding the scale of medical service supply in Zhejiang Province. Through the acquisition of Yueqing Bond Hospital, on the one hand, the bed tension of Yueqing Corning Hospital Co., Ltd., a subsidiary of the company, can be alleviated, and the capacity and scale of psychiatric medical services in Yueqing area can be greatly improved. On the other hand, with the help of the mature geriatric rehabilitation model of Wenzhou Yining Geriatric Hospital Co., Ltd., a subsidiary of the company, we can integrate the advantageous resources among doctors, enhance the overall profit level of the region, and further develop and consolidate the Group's market position in psychiatry and geriatric rehabilitation in southern Zhejiang.