Union Medical Healthcare acquires obstetrics and gynaecology medical services company Refine the service portfolio and strive to develop O G business

[FOR IMMEDIATE RELEASE]

Union Medical Healthcare acquiresobstetrics and gynaecology medical services company

Refine the service portfolio and strive to develop O&G business

(21 October 2020, Hong Kong) Union Medical Healthcare Limited ("Union Medical Healthcare" or the "Company", which together with its subsidiaries is referred to as the "Group", SEHK stock code: 2138), the largest nonhospital medical group in Hong Kong*, is pleased to announce that the Group has acquired a total of 51% of the equity in the target company from a registered medical practitioner in obstetrics and gynaecology ("O&G")(the "Specialist") at a total consideration of HK$85.25 million. The specialist provides a profit guarantee to the Group that the aggregate of the audited net profit after taxation of the target company for the eight years ending 31 March 2028 shall be no less than HK$166 million. Upon Completion, the financial information of the target company will be consolidated into the consolidated financial statements of the Group.

The target company is principally engaged in the provision of medical services in the areas of O&G, it operates 4 clinics in Hong Kong with 8 registered medical practitioners specialised in O&G. The target company is also offering in vitro fertilization ("IVF") referral services out of Hong Kong. Based on the unaudited financial information of the target company for the year ended 31 March 2020, the unaudited profit after taxation and unaudited net asset value were approximately HK$16.5 million and HK$28.7 million, respectively.

Mr. Eddy Tang, Chairman, Executive Director and Chief Executive Officer of Union Medical Healthcare said, "The Group has been seeking suitable opportunities to develop O&G business since its IPO. Medical and ancillary services with respect to O&G has been in demand in recent years, this acquisition will help the Group accelerate its business layout in the cross-border IVF market. While promoting the strategy of medical tourism of the Group, it will also help expand the Group's IVF and reproductive medication business. In order to refine the medical service offering of the Group, we have been actively engaged in inviting medical practitioners qualified in various specialties to join the Group. Facing the huge healthcare service market, the Group will continue to look for good opportunities and strive to seize development opportunities to further consolidate the Group's industry leadership as an integrated medical group."

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About Union Medical Healthcare Limited 

Union Medical Healthcare is Hong Kong's largest non-hospital medical service provider*, leveraging its core businesses of preventive and precision medicine, and committed to developing medical artificial intelligence by integrating its multi-disciplinary medical services. The move, which is supported by the Group's high-end branding and quality customer services, is aimed at offering customers safe and effective medical services with professionalism.

The Group principally engages in the provision of one-stop medical and health care services in Greater China. The Group provides a full range of services and products under its well-known brands, including those of its one-stop aesthetic medical solutions provider DR REBORN which has ranked first in Hong Kong by sales for years, primary care clinics jointly established with Tencent Doctorwork, chiropractic services centre SPINE Central, health management centre re:HEALTH, a vaccine centre Hong Kong Professional Vaccine HKPV, a comprehensive dental centre UMH DENTAL CARE, a diagnostic and imaging centre HKAI, an oncology treatment centre reVIVE, a day procedure centre HKMED, a specialty clinic SPECIALISTS CENTRAL, Hong Kong International Cardiology Center and a professional hair care center HAIR FOREST.

*According to the independent research conducted by Frost and Sullivan in terms of revenue in 2018 and 2019 

For further information, please contact: 

iPR Ogilvy Limited 

Callis Lau / Molisa Lau / Shana Li / Ada Chew 

Tel: (852) 2136 6952 / 2136 6953 / 3920 7649 / 3920 7650 

Fax: (852) 3170 6606 

Email: umh@iprogilvy.com