Guangdong Kanghua Healthcare Co., Ltd. (SEHK:3689) entered into acquisition agreement to acquire remaining 40% stake in Chongqing Kanghua Zhonglian Cardiovascular Hospital Co., Ltd. from Dongguan Jiade Healthcare Investment Co., Ltd for approximately CNY 110 million on May 5, 2023. The consideration will be financed from IPO net proceeds and internal financial resources. As on December 31, 2022, Chongqing Kanghua Zhonglian Cardiovascular Hospital Co., Ltd. generated revenue of CNY 53.6 million, net loss after tax of CNY 99.2 million, total assets of CNY 749.5 million and net liabilities of CNY 134.9 million.

The transaction is expected to close within 30 business days.