General Technology Group Strategically Invests in Neusoft Medical to Co-create the Future of China's Medical Equipment Industry

[Beijing, July 3, 2024] Recently, General Technology Group Capital Co., Ltd., in conjunction with China State-owned Enterprise Mixed Ownership Reform Fund Co., Ltd., signed an investment agreement with Neusoft Medical Systems Co., Ltd. (hereinafter referred to as “Neusoft Medical”) to make a strategic investment in the company. As a concrete practice of central state-owned enterprises and private enterprises joining hands to develop the high-end medical equipment industry, this strategic cooperation marks General Technology Group’s entry into the research, development, and manufacturing of large-scale digital medical equipment, realizing its strategic layout shift from medical services to medical technology. It also signifies full recognition of Neusoft Medical’s technological innovation capabilities, commercial value, and development potential. This strategic cooperation is of great significance for General Technology Group to accelerate its layout in strategic emerging industries and strengthen, optimize, and expand its pharmaceutical and healthcare sectors, as well as for accelerating Neusoft Medical’s leapfrog development.

China General Technology Group is a key state-owned enterprise directly under the central government, focusing on three core businesses: advanced manufacturing and technical services, pharmaceuticals and healthcare, and trade and engineering services. The Group continuously optimizes its layout and structure, strengthens innovation-driven development, and strives to promote high-quality growth. In recent years, China General Technology Group has actively supported the Healthy China initiative and the national strategy for addressing population aging. Centering on the growing public demand for improved quality of life and health security, it leverages its industrial advantages in medical care, rehabilitation, elderly care, pharmaceuticals, and medical devices, committing to provide people-centered, comprehensive healthcare services covering all business sectors and the entire life cycle. Currently, China General Technology Group operates more than 400 medical institutions across 27 provinces and municipalities nationwide, making it a central state-owned healthcare group with a leading number of hospital beds, extensive network coverage, and distinct characteristics of a full industry chain.

Neusoft Medical, invested and established by Neusoft Group in 1998, launched China’s first domestically produced CT scanner with independent intellectual property rights in the same year. This achievement not only filled a gap in China’s medical equipment industry but also reshaped the global competitive landscape for CT technology, making China the fifth country in the world to master CT manufacturing technology. Over the past two decades since its establishment, Neusoft Medical has relied on independent research and development to lead the revitalization and growth of China’s high-end domestic medical equipment sector. It has successively introduced milestone innovations such as China’s first 1.5T superconducting MRI system and the first digital radiography (DR) system. In recent years, the company has further developed products that rival or surpass international advanced standards, including China’s first 512-slice ultra-high-end CT scanner, the industry’s first dual-energy 3.0T MRI system, and the world’s first trackless ceiling-mounted dual-center seven-axis angiography system. Through continuous self-transcendence and innovation, Neusoft Medical is driving the realization of autonomous and controllable key core technologies and strategic scientific products in China’s high-end medical equipment field.

Currently, Neusoft Medical offers nearly 100 digital medical diagnosis and treatment products that cover all categories, tiers, and customer segments. These products span nine major categories, including Computed Tomography (CT) systems, Magnetic Resonance Imaging (MRI) systems, Digital Subtraction Angiography (DSA) systems, Nuclear Medicine Imaging Equipment (PET/CT), Radiotherapy Products (RT), General X-ray Imaging Equipment (GXR), Ultrasound Diagnostic Equipment (US), In Vitro Diagnostics Equipment and Reagents (IVD), as well as innovative imaging data services such as MDaaS. Meanwhile, the company is actively expanding its international presence, having established 12 overseas branches in countries including the United States, Germany, Brazil, Peru, Kenya, and the United Arab Emirates. It provides products and services to more than 13,000 medical institutions in over 110 countries worldwide, with a historical installed base exceeding 47,000 units, making it China’s largest CT manufacturer and exporter. In May 2024, Neusoft Medical’s photon-counting CT acquired its first human image. This revolutionary advancement not only marks another breakthrough in Neusoft Medical’s independent innovation but also represents a milestone for China in the field of ultra-high-end medical imaging equipment, propelling domestically produced medical imaging devices from “following” and “keeping pace” to “leading.”

Yu Xubo, Chairman and Party Secretary of China General Technology (Group) Holding Co., Ltd. (Genertec), stated that Neusoft Medical is a leading enterprise in China’s large-scale medical equipment sector, having written a historic chapter in the independent research, development, and innovation of Chinese medical devices. The strategic investment by Genertec’s capital subsidiary in Neusoft Medical, making it the largest shareholder, represents a significant step for Genertec to firmly lay out its presence in strategic emerging industries. This move not only enhances Genertec’s layout and ecosystem in the pharmaceutical and healthcare industry, creating strong business synergies, but also serves as a key action for Genertec to align with national strategies, fulfill national missions, and safeguard national health security. In the future, Genertec will steadfastly support Neusoft Medical’s independent development and its path to going public. Focusing on the intelligent, high-end, and global development of premium medical imaging equipment, Genertec aims to accelerate the formation of new quality productive forces and empower the rapid advancement of China’s domestic large-scale medical equipment industry.

Liu Jiren, Chairman of Neusoft Group and Neusoft Medical, stated that China General Technology (Group) Holding Co., Ltd. (Genertec) is the large-scale central state-owned enterprise with the most extensive resources, greatest strength, and significant influence in China’s pharmaceutical and healthcare sector. As a key driver of China’s healthcare industry, Genertec is also Neusoft’s most trusted strategic investor. Together, Neusoft Group and Genertec have established an equity structure for Neusoft Medical that supports its independent development, fully leveraging the resources and initiative of all parties involved. This collaboration will significantly enhance Neusoft Medical’s long-term investment value and market position, provide strong support for its sustained and stable growth, and create a successful model of cooperation between central state-owned enterprises and private enterprises in China’s medical equipment sector.

High-end medical equipment reflects a nation’s capacity for technological innovation and its level of advanced manufacturing. In the future, both parties will continue to promote the deep integration of technological and industrial innovation, seize new industrial opportunities, empower each other, and pursue coordinated development. They will accelerate the research and development of new technologies and products, expand into new services and markets, and join forces to create smarter, more advanced, and safer large-scale medical equipment. By accelerating the cultivation and development of new quality productive forces, they will continuously enhance China’s independent innovation capabilities and core competitiveness in high-end medical equipment, effectively leveraging their roles in technological innovation, industrial control, and security support. These efforts will advance the safety, equity, and accessibility of healthcare in China, make positive contributions to safeguarding public health and promoting the high-quality development of the medical sector, provide stronger support for the Healthy China strategy, and better serve the construction of a new development paradigm.

(This transaction is still subject to the completion of relevant procedures and approval by the competent authorities.)