NWS Holdings forges new partnership to develop healthcare services in Mainland China

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NWS Holdings forges new partnership to develop healthcare services in Mainland China

NWS Holdings Limited (“NWS Holdings” or the “Group”; Hong Kong stock code: 659) today announced that it has entered into agreements with Chow Tai Fook Enterprises Limited (“CTFE”) and UMP Healthcare Holdings Limited (“UMP”) to develop healthcare services with primary focus on clinical services in Mainland China and Hong Kong. Under the agreements, NWS Holdings and CTFE will form a 50/50 joint venture, Healthcare Assets Management Limited (“HAML”), to acquire four clinics in Beijing and Shanghai from UMP. The Group will also subscribe 20% shares in UMP Healthcare China Limited (“UMP Healthcare China”), a subsidiary of UMP which mainly engages in corporate healthcare solutions and management services in Mainland China. NWS Holdings’ total commitment in these transactions is approximately HK$193 million, with HK$70 million for HAML and approximately HK$123 million for UMP Healthcare China. 

Upon completion of these transactions, HAML will become an investment holding company with UMP Healthcare China acting as the manager, and will mainly focus on the investment, operation and management of clinics and medical centres in Mainland China and Hong Kong. With total committed capital of HK$140 million from NWS Holdings and CTFE, HAML will initially acquire three clinics in Beijing and one clinic in Shanghai.

Tsang Yam Pui, Chief Executive Officer of NWS Holdings, said, “The HAML platform represents another move by the Group to expand healthcare services following our investment in the Gleneagles Hong Kong Hospital in our home base. The healthcare sector in Mainland China has tremendous growth potential in view of the healthcare system reform and rising demand for quality services resulting from aging population and increase in personal income. Building on our respective market network and financial strength, the partnership will enable the Group to benefit from this fast growing sector in the long run.”

Dr. Sun Yiu Kwong, Chairman and Chief Executive Officer of UMP, said, “This new partnership marks another key milestone in UMP’s development of healthcare services in China, which we believe is in the best interest of our shareholders. Leveraging on the extensive experience of both NWS Holdings and CTFE in operating businesses in China, their vast networks and substantial financial resources, UMP will be able to fast-track the building of a strategic clinic and provider network that is crucial to developing corporate healthcare solutions services.

“This partnership will also enable UMP to concentrate its resources on building a strong corporate healthcare solutions development team, as well as a strong primary healthcare workforce through structured training and accreditation programs. We are confident that such partnership will deliver great synergies to all of our stakeholders,” he added.

NWS Holdings Limited

NWS Holdings Limited (“NWS Holdings”, Hong Kong stock code: 659), the infrastructure and service flagship of New World Development Company Limited (Hong Kong stock code: 17), operates businesses in Hong Kong, Mainland China and Macau. Its Infrastructure portfolio includes Roads, Environment, Logistics and Aviation projects. Its Services portfolio comprises Facilities Management (the management of Hong Kong Convention and Exhibition Centre and Free Duty), Construction & Transport (construction, bus and ferry services) and Strategic Investments. 

Chow Tai Fook Enterprises Limited

Chow Tai Fook Enterprises Limited (“CTFE”) is a private Hong Kong-based holding company owned and controlled by Dato’ Dr. Cheng Yu Tung’s family. CTFE is the controlling shareholder of New World Development Company Limited (Hong Kong stock code: 17), a listed blue chip conglomerate in Hong Kong. The principal activities of the CTFE group of companies include investment holdings, property development and investment, hospitality services, infrastructure, department stores and other consumer and retail businesses. 

UMP Healthcare Holdings Limited

Based in Hong Kong, UMP Healthcare Holdings Limited (Hong Kong stock code: 722) is one of the leading corporate healthcare solutions providers in Hong Kong, serving more than 1 million members and administering approximately 10,000 health plans. UMP handles more than 1.4 million medical and dental patient visits in financial year 2016 (“FY2016”). UMP has a proven organic growth track record of over 20 years in Hong Kong and offers a comprehensive range of healthcare services through one of the largest service networks in Hong Kong, with more than 600 points of service across Hong Kong, Macau, Beijing and Shanghai. Leveraging its proprietary know-how and clinical management system, UMP is capable of designing differentiated, tailor-made solutions that address each contract customer’s needs. UMP was listed on the main board of the Hong Kong Stock Exchange on 27 November 2015.