In order to optimize the allocation of resources, the pharmaceutical company is selling its hospitals one after another

Recently, Xinhua Medical announced that it intends to transfer 12.
85% of the equity of Shanghai Chenwei Zhongde Hospital Management Co.
, Ltd.
, jointly held by its holding subsidiaries Shandong Honghua Investment Co.
, Ltd.
and Zibo Hongxin Medical Technology (Co.
, Ltd.
), to Chen Wei
, a natural person.

According to public information, Shanghai Chenwei Zhongde, which was established in December 2015, has several specialized hospitals, namely Jinan Zhongde Orthopaedic Hospital, Changchun Zhongde Orthopaedic Hospital, Xi'an Zhongde Orthopaedic Hospital and Changchun Orthopaedic Hospital
.

This equity transfer means that Xinhua Medical voluntarily relinquishes part of the control of the
hospital.

This is actually not the first time that Xinhua Medical has "left" a private hospital
.

It is reported that two months ago, Xinhua Medical planned to transfer 43.
3% of the equity of Tangshan Hongxin Hospital Co.
, Ltd.
through the public listing of the property rights trading center; In December 2020, Xinhua Medical intends to sell a 70% stake in Zichuan District Hospital West Hospital Co.
, Ltd.
in Zibo; In April 2020, Xinhua Medical intends to sell 80% of the equity of Nanyang Orthopedic High-tech Zone Hospital Co.
, Ltd.
In fact, in recent years, in order to optimize the allocation of resources and withdraw funds, there are not a few pharmaceutical companies that have transferred and sold the equity of hospitals
.

For example, in June 2021, Kangzhi Pharmaceutical announced that it intends to sell 90% of the equity of Guangdong Kangzhi Hospital Management Co.
, Ltd.
to Tianjin Binhai Yuanxian Management Consulting Center (Limited Partnership) for RMB339.
66 million, and intends to sell 10% of the equity of Kangzhi Hospital Company to Sichuan Jinxin Reproductive Medical Investment Management Co.
, Ltd.
for RMB37.
74 million, and after the completion of this transaction, the company will no longer hold the equity of Kangzhi Hospital Company.
It no longer holds 51% of the shares
of Yunnan Jiuzhou Hospital Co.
, Ltd.
and Kunming and Wanjia Maternity Hospital Co.
, Ltd.

According to the data, Jiuzhou Hospital is a private for-profit second-level general hospital located in Panlong District, Kunming, Yunnan Province, while Hewanjia Hospital is a private for-profit tertiary obstetrics and gynecology specialty hospital
located in Wuhua District, Kunming, Yunnan Province.

For this transaction, Kangzhi Pharmaceutical said that it is expected to generate more than 50 million yuan of investment income, which will have a certain impact on
the company's operation.

At the same time, the relevant investment income will be invested in the company's research and development, production and other main businesses, in line with the company's overall planning
.

On December 7, 2020, Tonghua Jinma also disclosed that the company decided to terminate the acquisition of 85% of the equity of Jixi Jikuang Hospital Co.
, Ltd.
(hereinafter referred to as "Jikuang Hospital") and 85% of the equity
of Shuangyashan Shuangkuang Hospital Co.
, Ltd.
(hereinafter referred to as "Shuangkuang Hospital").

It is understood that as early as November 2019, Tonghua Jinma began to prepare for the restructuring, and intends to purchase 73.
48% of the equity and 11.
52% of the equity of Chicken Mine Hospital held by DXN Yili and Shengzezhou by paying cash; DXN Yili and Shengzezhou purchased 73.
48% of the equity and 11.
52% of the equity of Shuangkuang Hospital held by DXN Yili and Shengzezhou respectively
by paying cash.

After consultation between the parties to the transaction, the preliminary transaction consideration of the above-mentioned underlying assets was RMB1.
53 billion
.

It is worth noting that at present, many capital outside the medical service circle have begun to withdraw from the social medical track, in addition to pharmaceutical companies, there are many types of enterprises that intervened in social medical services in the early years, from the production of steel pipes, tea, to breeding, the development of real estate
.

Industry analysts believe that from the overall point of view, many capitals, including pharmaceutical companies, have withdrawn from private hospitals, mainly because there are many
difficulties in hospital operation.

In addition to the epidemic, medical insurance has begun to crack down on insurance fraud, and the launch of medical insurance payment reform is even more far-reaching
.

At present, many hospitals have suffered losses and closures
due to unreasonable market layout, weak competitiveness, and poor internal operation level.

In general, investment in the medical service track is not easy, and it is even more difficult to enter a benign development stage
.

At the moment when the medical industry has entered the integration period, the industry expects that for a considerable period of time, the medical service industry will open the survival of the fittest model, and in the future, some pharmaceutical companies will accelerate the withdrawal of hospitals
.

Disclaimer: In no event shall the information or opinions expressed herein constitute investment advice
to any person.