Forges Collaboration to Tap into China’s Mid- and High-end Pediatrics and Obstetrics and Gynecological Healthcare Market
HONG KONG, CHINA – Media OutReach – 9 April 2018 – New Century Healthcare Holdings Limited (“New Century Healthcare” or “the Company”, stock code: 01518), a leading mid- and high-end pediatric and obstetrics and gynecological medical group in China, welcomes New World Development Company Limited (“NWD”, stock code: 00017) on board as its strategic shareholder taking a 4.29% stake. On top of that, the two parties entered into a memorandum of understanding (“MOU”) to forge in-depth collaboration to explore expansion opportunities in the mid- and high-end pediatric, obstetrics and gynecological, and family healthcare management services in Mainland China and the Greater China region.
In addition, through a PRC entity, NWD invested in Beijing Jiahua Likang Medical Investment and Management Co., Ltd. (“Jiahua Likang”), an affiliate of New Century Healthcare. Jiahua Likang owns and operates a pediatric and obstetrics and gynecological healthcare network under the New Century Healthcare brand outside of Beijing. This investment sets the foundation for the two parties to explore collaboration between the New Century Healthcare brand and that of NWD.
Jason Zhou, founder, Chairman and Chief Executive Officer of New Century Healthcare, said, “We are honored to welcome NWD as a strategic shareholder of New Century Healthcare. It is a testimony to our market position, business strategy, and potential for future development. NWD is one of the earliest Hong Kong enterprises to enter the real estate market in Mainland China and has always uphold its commitment of sustainable urban community development. This belief is perfectly in sync with our vision to provide high quality medical services for women and children for a better future. We are in the midst of exploring win-win collaborations and are confident that with the support of NWD, New Century Healthcare will accelerate its development to fully capture opportunities in the mid- and high-end pediatrics and obstetrics and gynecological market in China, thereby creating greater value for our shareholders.”
China’s second child policy offers the new generation with financial means and capabilities an option to add new family members. Together with rising health awareness and increasing consumption power, the middle class in China has an escalating demand for high quality pediatric and obstetric and gynecological services. New Century Healthcare, as a forerunner to seize this opportunity, now ranks first in the private pediatric medical services market as well as the mid- and high-end pediatric medical services market in Beijing in terms of revenue, taking a lion share of nearly one-third and a half of the markets respectively.
Adrian Cheng, Executive Vice-Chairman and General Manager of New World Group, said, “NWD has made substantial investments to capture opportunities in the middle class and nuclear family segment in Mainland China following our in-depth market studies which gain insight into the living patterns and spending habits of these consumers. As the middle class in China continues to emerge as a rising force, there has been strong solid demand for healthy living and quality medical services. Driven by China’s healthcare system reform and second-child policy, the private healthcare market has enormous potential yet to be unleashed. Integrating health care facilities in property development is a trend we accord high importance.”
“Following our investment in China’s clinical and healthcare management market through internal collaboration with companies under the NWD Group last year, the equity investment in New Century Healthcare confirms our confidence in the prospect of this market,” Cheng added. “The investment aligns with our strategic planning. Not only will we embark on close collaboration in first tier cities, we will also, through investing in Jiahua Likang, actively introduce the New Century brand to commercial and residential projects in major cities such as Shenyang and Wuhan, providing brand new healthcare experiences to customers through the new retail business model. Furthermore, we will explore the cooperation on customer resource as well as cross-selling opportunities, and we expect the cooperation with New Century will bring a broader development perspective to both parties.”
Wang Lin, Founding Partner of CDH Investments said, “We are pleased that New Century Healthcare and NWD have reached a strategic collaboration agreement. As a major shareholder of the Company, CDH Investments has full confidence in the growth potential of the pediatrics and obstetric and gynecological healthcare market. We will continue to leverage CDH’s network and resources in the medical arena to support the long-term growth of New Century Healthcare. We are excited about the synergistic benefits to be created through of the collaboration between NWD’s extensive resources nationwide and New Century Healthcare’s expertise and the positive value it creates for shareholders. We also look forward to further strategic cooperation opportunities with the new shareholder in the mid- and high-end medical market segment to bring services of higher quality to families in China.
“As a leading player in the industry, New Century Healthcare has garnered extensive operating experience in the mid- to high-end pediatric and obstetrics and gynecological healthcare market in first tier cities in the past decade. In January 2018, the Company received shareholder approval for acquiring an 85% stake in New Century Women’s and Children’s Hospital in the southwest metropolitan Chengdu. Now the Company’s commercial domain spans across Beijing, Shanghai, Guangzhou and Shenzhen from north to south, and from east to west, it stretches to Chengdu. All of these are amongst the most economically vibrant cities with high purchasing power.
Looking ahead, Jason Zhou stated, “New Century Healthcare will continue to strengthen its specialist medical service capabilities to fulfil the unaddressed demand for mid- to high-end healthcare market through innovations in terms of service scope and means. By adding new hospitals and clinics via organic expansion as well as acquisition, we will expand our service network further. We will make use of new technologies to provide remote diagnosis and treatments for patient diversion in order to achieve higher efficiency and productivity. We are confident of creating a first-class healthcare service group focused on quality medical services to children and women, and eventually generating sustainable value creation for shareholders.”
NWD has completed the acquisition of a 4.29% stake in New Century Healthcare from original shareholder CDH Investments in early 2018. CDH Investments continues to be the major shareholder of New Century Healthcare and currently owns a 6.47% stake.
About New Century Healthcare Holding Co. Limited
New Century Healthcare Holding Co. Limited (“New Century Healthcare” or the “Company”, Stock Code: 1518.HK) is a leading private pediatric healthcare provider in Beijing. The Company expanded into obstetric and gynecologic services in November 2015, making it the first and one of the few private for-profit healthcare service providers in Beijing that can offer comprehensive and specialised pediatric services, as well as integrated pediatric and obstetric and gynecologic services. The Company upholds the principle of providing high-quality, customer-centered healthcare services to enhance the customer experience and the company’s reputation.
New World Development Company Limited
Founded in 1970, New World Development Company Limited (“The Group”, Hong Kong stock code: 00017) was publicly listed in Hong Kong in 1972 and is a constituent stock of the Hong Kong Hang Seng Index. A premium brand infused with a unique personality defined by The Artisanal Movement, New World Group’s core business areas include property development, infrastructure and services, department stores and hotels. As at 31 December 2015, the total asset value of the Group amounted to HK$409.7 billion. The Group has an effective interest of approximately 61% in NWS Holdings Limited (Hong Kong stock code: 00659), approximately 72% in New World Department Store China Limited (Hong Kong stock code: 00825). New World China Land Limited is wholly owned by the Group.
Established in 2002, CDH Investments is one of the leading alternative investment fund managers focused on China today with over US$17 billion of assets under management, as of December 31, 2016. From its roots in private equity, CDH has expanded to become a diversified alternative asset management platform covering: Private Equity, Real Assets, Venture and Growth Capital, Mezzanine&Credit, Public Equities and Wealth Management. CDH has more than 100 investment professionals working in offices in Hong Kong, Singapore, Beijing, Shanghai and Shenzhen. CDH’s core principle is to consistently create value for investors and portfolio companies.