Guangdong Kanghua Medical Co., Ltd. (“Kanghua Medical”) was established in 2002. Kanghua Hospital, which we operate, is the largest private for-profit general hospital in China. It is also the first private for-profit general hospital in China to obtain a grade 3 A rating (the highest rating a hospital in China can get). Kanghua Hospital provides continuous medical services to a variety of patients. In addition to Kanghua Hospital, we also operate Renkang Hospital, a private for-profit general hospital serving local communities. Both hospitals are located in Dongguan and complement each other through patient referrals, technical support, multi-point practice and research, and teaching cooperation. As of April 30, 2016, Kanghua Hospital and Renkang Hospital had 2,006 and 480 registered beds respectively. In June 2016, we also signed a management agreement for Zhonglian Cardiovascular Hospital. The developing cardiovascular specialist hospital is located in Chongqing, our first managed hospital and our first base outside of Guangdong Province. Kanghua Medical specializes in many medical fields. Kanghua Hospital has a national clinical key specialty approved by the National Health Planning Commission in plastic surgery; it has three key clinical specialties in Guangdong Province approved by the Guangdong Provincial Health Planning Commission in cardiology, general surgery, and medical imaging; and two specialized specialties in Dongguan approved by the Dongguan Municipal Health Planning Bureau in spine and joint surgery and thoracic surgery, respectively. According to Frost & Sullivan, Kanghua Hospital has (i) the largest cardiology department; (ii) the largest obstetrics and gynecology department; and (iii) the second largest orthopedic department among private general hospitals in South China. Kanghua Medical has strong brand awareness and competitive advantage in the Pearl River Delta region. It can provide a range of medical services through a multidisciplinary team of medical professionals and advanced medical facilities, and has outstanding achievements in many major disciplines; we have achieved outstanding results in operating the first three private for-profit general hospitals in China. Our business focuses on providing continuous care to patients through our multidisciplinary private for-profit general hospital. We will focus on expanding medical services, including VIP medical services, high-end reproductive medicine, advanced oncology service provision, neurology service provision, high-end preventive medical services, and comprehensive geriatric care. We aim to further develop our hospital network, continue to invest to maintain clinical advantage, and use our rich experience to create value and improve patient satisfaction. Adhering to the corporate tenet of “being born for good, good medicine” and focusing on the needs of patients, we are committed to providing a high level of medical services to the general public and contributing to improving the overall level of medical care in the region.
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