CITIC Capital Completes Strategic Investment in Universal Medical Group with $150 Million Convertible Bond

VCBeat (WeChat ID: “vcbeat”) has learned that the private equity investment arm of CITIC Capital Holdings Limited (hereinafter referred to as “CITIC Capital,” also known as “Xincheng Capital,” the new brand launched by its private equity division) announced the completion of a USD 150 million convertible bond investment in Genertec Universal Medical Group Company Limited (a member of China General Technology Group, stock code: 2666.HK; hereinafter referred to as “Universal Medical”). The convertible bonds have a tenor of five years from the date of issuance and carry a coupon rate of 2%. The proceeds will be used to support the business development of Universal Medical’s hospital group, the operations of its finance and consulting businesses, and general corporate operations, thereby further empowering Universal Medical’s future business growth and strategy implementation and helping to build a leading healthcare group.

Genertec Universal Medical Group Company Limited is a listed company under China General Technology (Group) Holding Co., Ltd., a key state-owned enterprise directly administered by the central government. As a central state-owned holding group with healthcare as its core business, Genertec Universal Medical serves as the operational entity for the healthcare segment of the Genertec Group. Focusing on China’s rapidly growing healthcare industry, the company centers its operations on medical services, supported by financial services, striving to build a trustworthy healthcare group and gradually establish a shared and win-win health industry ecosystem. Currently, Genertec Universal Medical oversees more than 50 medical institutions with over 15,000 hospital beds. In 2020, it was selected as a typical case of mixed-ownership reform in state-owned enterprises by the State-owned Assets Supervision and Administration Commission (SASAC). Looking ahead, Genertec Universal Medical will strive to achieve breakthroughs in the innovative development of financial services, building core competencies of its hospital group, digital transformation, and expansion of the health industry, thereby serving the “Healthy China” strategy and contributing to China’s healthcare undertakings.

CITIC Capital and Genertec Universal Medical Group Company Limited (“Universal Medical”) share a long-standing partnership. Since becoming a strategic shareholder of Universal Medical in 2012, CITIC Capital has been deeply involved in every phase of the company’s business development and strategic transformation, providing strong support in enhancing corporate governance, diversifying financing channels, and driving value growth, thereby helping Universal Medical achieve substantial profit growth. Through this strategic investment, CITIC Capital will leverage its extensive resources and investment expertise in the healthcare and digital finance sectors to support Universal Medical in building a leading healthcare group.

Zhang Yichen, Chairman and Chief Executive Officer of CITIC Capital Holdings Limited and Chairman and Non-Executive Director of Genertec Universal Medical Group Company Limited, stated, “CITIC Capital has cooperated with Genertec Universal Medical for many years, establishing a solid strategic partnership. We are delighted to continue supporting the business development of Genertec Universal Medical and actively participating in its mixed-ownership reform process. CITIC Capital will continue to implement national strategic deployments, guided by market-oriented principles and mutual benefit, contributing to the improvement of market-based operating mechanisms, enhancing the vitality and efficiency of state-owned enterprises, and strengthening their competitiveness.”

Healthcare is one of the investment sectors that CITIC Capital has long been bullish on. In the post-pandemic era, public awareness of health and hygiene, along with demand for medical services, has continued to rise. As the “Healthy China Initiative” deepens, the healthcare industry is poised for even broader growth opportunities. As a long-term value investor, CITIC Capital has cultivated deep expertise in the healthcare sector over many years, focusing on comprehensively and continuously integrating resources and empowering the industry, thereby creating long-term value while providing the public with comprehensive, full-lifecycle health services.

As a central state-owned enterprise in the healthcare industry, Genertec Universal Medical Group Company Limited currently operates more than 50 medical institutions with over 15,000 hospital beds. Upholding its mission to safeguard life and health through high-quality medical care, the Group firmly seizes the favorable development opportunities in China’s healthcare sector. With medical services as its core and financial services as its foundation, it is building a shared and win-win healthcare ecosystem, striving to become a trusted healthcare group and contributing to the advancement of the “Healthy China” initiative.

CITIC Capital Holdings’ private equity arm, under its new brand Xinchen Capital, focuses on global controlling-stake acquisition opportunities. To date, it has completed over 80 investments in China, Japan, the United States, Europe, and other regions, with total assets under management reaching $7.7 billion.

CITIC Capital Holdings Limited, established in 2002, is an investment management and advisory firm specializing in alternative investments. The company manages over $36 billion in assets for a diverse base of international institutional investors through more than 90 funds and investment products. Its core businesses include private equity, real estate investment, structured finance, and asset management. CITIC Capital has invested in over 150 companies across 11 sectors worldwide, with the portfolio companies employing more than 800,000 people.