Jinwei Healthcare (08143): Jinwei Innovation Exhibition signed cooperative operation and management agreements with Xiamen Yueerwan and Yuerwan Qingdao

Zhitongcaijing · 10/25 12:33

Zhitong Finance App News, Jinwei Healthcare (08143) announced that on October 25, 2024, Jinwei Innovation Co., Ltd. (Jinwei Innovation), an indirect wholly-owned subsidiary of the company, signed a cooperative operation management agreement (this agreement) with Xiamen Yuerwan Medical Management Co., Ltd. (Xiamen Yuerwan) Internet Hospital Co., Ltd. (Yuerwan Qingdao, a direct wholly-owned subsidiary of Xiamen Yuerwan). According to the agreement, Jinwei Innovation has agreed to provide hospital management services to Yuerwan Qingdao and Qingdao Yuerwan Internet Hospital (Internet Hospital) (the Internet hospital is operated by Yuerwan Qingdao), and Yuerwan Qingdao has agreed to pay (i) a monthly fixed management fee of HK$1.75 million; or (ii) 1% of the operating income of the Internet Hospital as shown in the audited financial report for the relevant financial year; and (b) the management fee of 10% of the net hospital's profit before tax as shown in the audit report (whichever is higher).

The agreement is valid for five years (term) from October 25, 2024, and no party to the agreement has the right to unilaterally terminate the agreement without cause within the first year of the term, and any party to the agreement may terminate the agreement within the second to fifth year of the term by issuing not less than three months' prior written notice to the other parties. The agreement may be extended by the parties, and a supplementary agreement shall be concluded upon extension.

According to the agreement, Xiamen Yuerwan has agreed to grant Jinwei Innovation (or its representative) the right to purchase all or part of the shares of Yuerwan Qingdao and Internet Hospital in Xiamen within a limited period of time. The terms and costs of the acquisition of the relevant shares are subject to further negotiation. If Jinwei Innovation exercises share options and enters into any specific agreement with respect to the potential acquisition of shares, the company will make further announcements in due course in accordance with the GEM Securities listing rules of the Stock Exchange.

The Group is mainly engaged in providing general hospital services in China. The Board believes that by entering into this agreement, the Group can use its expertise in hospital and medical management to provide hospital management services to Yuerwan Qingdao and Internet Hospital, expand its healthcare business to an online platform, and broaden its revenue sources by confirming management fees collected under the agreement as revenue. Therefore, the board of directors believes that the agreement was concluded under normal commercial terms in the company's daily and general business processes, and conforms to the overall interests of the company and the company's shareholders.