Kanghua Medical: Plans to Transfer Remaining 45% Equity of Kangxin Hospital for 14.2 Million Yuan

LightningPacketLoss · 2026-03-24T11:54:47+00:00

Kanghua Medical has decided to divest its 45% stake in Kangxin Hospital in 2026, with an estimated transaction price of 14.2 million yuan, due to the hospital's underperformance against expectations and intensified market competition. Following the divestment, Kangxin Hospital will no longer be accounted for as an associate company, though Kanghua Medical will retain ownership of the land and buildings, with estimated gains of approximately 12.2 million yuan.

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2026-03-24 11:54:47

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On March 24, Kanghua Medical announced that the board of directors has decided to transfer the remaining 45% equity stake in Kangxin Hospital to the buyer, Beijing Fazheng Industrial Group Co., Ltd., with an estimated consideration of 14.2 million yuan, by March 23, 2026.

After the transfer, Kangxin Hospital will no longer be an associate company of the group, and its financial performance will no longer be consolidated into the group’s financial statements using the equity method. The group (through its property company) will continue to hold 100% ownership of the land and buildings necessary for Kangxin Hospital’s operations and will lease them to Kangxin Hospital.

The main reason for this sale is that Kangxin Hospital’s performance has consistently fallen short of management expectations, and competition in the medical market in Chongqing has become increasingly fierce. The board believes that continued investment solely by existing shareholders is not the best long-term solution for Kangxin Hospital, so they have decided to introduce investors to optimize internal resource allocation. The sale is expected to generate a gain of approximately 12.2 million yuan.

(Kanghua Medical Announcement)

(Edited by: Yang Yan, Lin Chen)

Keywords: Healthcare

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