PRESS RELEASE
To Editor (Business / Finance/ China News)
Golden Meditech completed
the estabishment of the first Sino-foreign equity joint venture
for the distribution of medical devices in the PRC
[Hong Kong – 25 October, 2004]
Golden Meditech Company Limited (“Golden
Meditech”) announced the completion of the establishment of the first Sino-foreign
equity joint venture for the distribution of medical devices in the PRC with China National
Medical Equipment Industry Corporation (“CMIC”), the largest state-owned medical
devices distributor in the PRC. The joint venture contract and the articles of association
came into effect as from 27 September, 2004 and thus the joint venture under the name
of Union China National Medical Equipment Co., Ltd. (“Union China National”) was
established on the same date. Union China National will engage in developing,
marketing and acting as agent for medical devices, as well as providing consultancy
services in relations to medical devices in the PRC.
“The establishment of this joint venture is a significant strategic move which will bring a
vertical growth for the group. CMIC currently chairs the PRC Medical Devices
Association and is the largest PRC state-owned medical devices distribution enterprise,
with strong financial muscle and government connections. Its sales and distribution
network covers the entire country. The establishment of Union China National will surely
strengthen Golden Meditech’s business capability and potential for expansion. With an
increasing demand of medical devices in the PRC resulted from the double-digit annual
growth of China’s medical sector, we are confident that the collaboration will greatly
facilitate our long-term development,” said Mr. KAM Yuen, Chairman of Golden
Meditech.
According to the joint venture contract, Golden Meditech Medical Devices Distribution
(BVI) Co. Ltd., a wholly-owned subsidiary of Golden Meditech, will contribute in cash in
Hong Kong dollars or US dollars in the amount of US$3,780,000 (approximately
HK$29,484,000), representing 37.8% of the registered capital. CMIC will contribute in
Renminbi (RMB) in the amount of US$3,870,000 (approximately HK$30,186,000),
representing 38.7% of the registered capital. The other two joint venture partners will
contribute 23.5% in total. The joint venture will have a total investment amount of
US$20,000,000 (approximately HK$156,000,000), out of which US$10,000,000 will be
used as registered capital of the joint venture. Union China National will take over all
the existing distribution network and businesses of medical devices from CMIC and will
be classified as an associated company of Golden Meditech.
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About Golden Meditech Company Limited
Golden Meditech is a leading hi-tech integrated medical corporation in the PRC
operating four main businesses: medical devices, haematopoietic stem cell storage,
Chinese herbal medicine and tumor treatment. Its main product, the Autologous Blood
Recovery System, is the first product of its kind to receive SFDA approval to
manufacture in the PRC. The Group is also one of the only two holders of Umbilical
Cord Stem Cells Storage permits issued by the PRC Ministry of Health. Furthermore,
Tang Cao Pian, developed under its Chinese herbal medicine business, is the only
proprietary Chinese medicine approved by the PRC’s SFDA to relieve AIDS symptoms.
The Group has formed a new joint venture with the largest state-owned medical
equipment distributor in the PRC to engage in the sale and distribution of medical
equipment from both domestic and foreign enterprises. Through research and
development, manufacture, expansion of distribution networks, mergers and acquisitions,
the Group strives to become the world’s leading hi-tech integrated medical corporation.
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Issued by A-World Consulting Ltd on behalf of Golden Meditech.
For further information and inquiries, please contact:
Ms Pamela Cheung
Senior Account Manager
A-World Consulting
Tel: (852) 2864 4844
Fax: (852) 2157 0505
Email: pamela.cheung@a-world.com.hk
Ms Anna Lee
Account Director
A-World Consulting
Tel: (852) 2864 4882
Fax: (852) 2157 0505
Email: anna.lee@a-world.com.hk
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