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Expands Its Network in Northwest China
iKang Healthcare Group, Inc. (Nasdaq:KANG), China’s largest private preventive healthcare services provider, today announced that it has acquired 70% equity interest of Xi’an iKang Health Management, which has 100% ownership in three medical centers under the brand name of Xi’an INLUNG, namely Xi’an Lianhu INLUNG Medical Center, Xi’an Weiyang INLUNG Medical Center and Xi’an Yanta INLUNG Medical Center.
This acquisition will mark iKang’s first steps into Xi’an, the capital city of Shaanxi. The provincial capital is a leading city among the five northwestern provinces. Xi’an INLUNG, founded in 2011 with a well-established customer base and a dedicated medical team, is one of the major private medical examinations service providers in Xi’an.
Mr. Lee Ligang Zhang, Chairman and Chief Executive Officer of iKang, commented on the acquisition. “We are delighted to welcome these new medical centers into our family. Xi’an is another key strategic market for iKang. The acquisition of these three medical centers will not only help to strengthen our presence in tier 2 cities, it will also enable us to expand our reach into nearby cities in Shaanxi and build a much stronger presence in Northwest China.”
iKang Healthcare Group, Inc. is the largest provider in China’s fast growing private preventive healthcare services market, accounting for approximately 13.6% of market share in terms of revenue in calendar year 2014.
Through iKang’s integrated service platform and established nationwide network of medical centers and third-party service provider facilities, the Company provides comprehensive and high quality preventive healthcare solutions, including a wide range of medical examinations services and value-added services including disease screening and other services. iKang’s customers are primarily corporate customers who contract the Company to provide medical examination services to their employees and clients, and pay for these services at pre-negotiated prices. iKang also directly markets its services to individual customers. In the fiscal year ended March 31, 2015, the Company served a total of 3.6 million customer visits under both corporate and individual programs.
As of December 22, 2015, iKang’s nationwide network consisted of 83(1) self-owned medical centers covering 23 of the most affluent cities in China, namely Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing, Tianjin, Nanjing, Suzhou, Hangzhou, Chengdu, Fuzhou, Changchun, Jiangyin, Changzhou, Wuhan, Changsha, Yantai, Yinchuan, Weihai, Weifang, Shenyang and Xi’an, as well as Hong Kong. The Company has also supplemented its self-owned medical center network by contracting with approximately 400 third-party service provider facilities in over 150 cities, which include selected independent medical examination centers and hospitals across all of China’s provinces, creating a nationwide network that allows iKang to serve its customers in markets where it does not have self-owned medical centers.
(1) Among the 83 self-owned medical centers, two medical centers are currently operated primarily by the minority shareholders of these medical centers or their parent company.
