EC Healthcare Acquires Veterinary Business, Further Consolidate the Pet Service Industry and Increase Market Shares

Apr 07, 2022 10:15 JST

Source: EC Healthcare

HONG KONG, Apr 07, 2022 - (ACN Newswire) - EC Healthcare (the "Company", which together with its subsidiaries is referred to as the "Group", SEHK stock code: 2138), the largest non-hospital medical group in Hong Kong*, is pleased to announce that the Group acquires 75% equity interests in a company operating veterinary hospital in Tai Po (the "Target Companies") from a registered veterinary surgeon in Hong Kong (The "Seller") for a total consideration of HK$15.75 million in cash. Upon completion of the Acquisition, the financial results of the Target Company will be consolidated into the consolidated financial statements of the Group.

The Target Company principally provides veterinary services in Tai Po with four registered veterinary surgeons. According to the unaudited financial information for the seven months ended 31 October 2021, the profit after taxation of the Target Company was approximately HK$2.6 million.

The Target Company guarantees to the Group that the aggregate audited net profit after taxation for the three years after the completion of the acquisition should be no less than HK$10,500,000.

The Group has been engaging in the veterinary business since 2021 and actively seeking opportunities to expand. The acquisition will provide the Group a new source of income and clientele for its existing businesses, achieving synergies between both sides, and further diversify the Group's business portfolio. The Target Company has a long-standing history in providing veterinary services in Tai Po, whichwill help the Group to consolidate its business capability in the New Territories of Hong Kong.

Mr. Levin Lee, Executive Director and Chief Finance Officer of EC Healthcare said, "In light of the tremendous but fragmented market of veterinary services in Hong Kong, the Group aims to build a leading and influential brand to consolidate the market, and promote the corporatization of the veterinary business in Hong Kong. We believe this acquisition will help the Group expand the veterinary business layout and service capability, and further increase the veterinary market share, thereby consolidating the Group's industry leadership as an integrated medical and healthcare group. Looking ahead, the Group has been developing an enclosed healthcare ecosystem focused on satisfaction of customers and creating more value to further consolidate the healthcare market."

About EC Healthcare
EC 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 healthcare and medical services with professionalism. The Group is a constituent stock of the Hang Seng Composite Index and the MSCI Hong Kong Small Cap Index.

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, New York Spine and Physiotherapy Center NYMG, 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 and NEW MEDICAL CENTER, obstetrics and gynaecology specialist ZENITH MEDICAL CENTER AND PRENATAL DIAGNOSIS CENTRE, specialists central, a paediatric center PRIME CARE, cardiology center HONG KONG INTERNATIONAL CARDIOLOGY CENTER, PathLab Medical Laboratories, a professional hair care center HAIR FOREST, Ophthalmology Center VIVID EYE and EC Veterinary Hospital and Imaging Center.

*According to independent research conducted by Frost and Sullivan in terms of revenue in 2019 and 2020

For further information, please contact:
iPR Ogilvy Limited
Callis Lau / Lorraine Luk / Charmaine Ip
Tel: (852) 2136 6952 / 2169 0467 / 3920 7649
Fax: (852) 3170 6606
Email: ech@iprogilvy.com

Sectors: BioTech, Healthcare & Pharm