East Asia Invests in Medical Business... "Participation in Hospital Management Company Operations"

[Asia Economy Reporter Hyunseok Yoo] East Asia Holdings announced on the 19th that it will officially expand its business by acquiring management rights of a hospital management company to grow its medical business in the Chinese market.

On the 16th, East Asia Holdings disclosed that it plans to acquire an 84% stake in Luxe Heritage Management Limited (hereinafter Luxe Heritage) through a capital contribution in kind. Luxe Heritage holds a 96.7% stake and management rights in Uiyang Deokhwa Hospital Co., Ltd., a general medical hospital in China. Through this acquisition of management rights accompanying the increase in shares, the hospital business, which had previously remained at the equity investment stage, has now been fully activated.

Luxe Heritage initially secured a 19.9% stake on January 12, 2018, when East Asia Holdings first entered the medical business. Then, on April 29 of this year, it decided to acquire an additional 64.01% stake through a special resolution at the regular shareholders' meeting, expanding its shareholding to 84%.

Luxe Heritage is a hospital management specialist company possessing professional hospital management know-how and generates profits through hospital investment and incubating. A company official stated, “We began investing in the medical business in 2017 to enter the rapidly growing Chinese medical market. Considering the investment results so far and the sufficient growth potential ahead, we decided to participate in management by expanding our stake.”

Uiyang Deokhwa Hospital Co., Ltd., invested in by Luxe Heritage, is a modernized general hospital integrating comprehensive medical facilities such as internal medicine, surgery, and obstetrics and gynecology, as well as elderly care and rehabilitation facilities, equipped with state-of-the-art medical equipment and technology.

The hospital invested in and managed by Luxe Heritage operates under the Uiyang-Gyeolhap (의양결합) model, which combines medical care and elderly care, and holds medical business licenses from the Chinese Ministry of Health and nursing home licenses from the Civil Affairs Bureau. This business model reduces medical risks as rehabilitation treatment follows diagnosis at a large hospital, and since most patients are in outpatient circulation, it requires fewer medical staff, resulting in reduced hospital operating costs.

The company plans to continue developing its medical business according to strategic plans, accumulating expertise while discovering new opportunities and high-quality resources to expand investments.

This content was produced with the assistance of AI translation services.