Penguin Xingren and China Resources Capital Jointly Establish China Resources Tengkang Healthcare Industry Fund with RMB 1 Billion Commitment

On September 15, 2020, Penguin Almond and China Resources Capital jointly announced the establishment of the Tengkang Healthcare Industry Fund (hereinafter referred to as the “CR Tengkang Fund”), with a total size of RMB 1 billion. The fund primarily focuses on the broader healthcare sector, leveraging the industrial resources of China Resources and Penguin Almond to invest in healthcare targets related to primary care, specialized care, and new healthcare business models.

The Huarun Tengkang Fund was jointly established by China Resources Capital and Penguin Almond Group. Its key partners include Chengdu Advanced Manufacturing Industry Investment Co., Ltd., Chengdu Hi-Tech Investment Group Co., Ltd., and Chengdu Xingcheng Capital Management Co., Ltd., among other Chengdu-based state-owned assets. China Resources Capital serves as the fund manager.

Since the outbreak of the COVID-19 pandemic, the healthcare industry has remained under sustained scrutiny. As a sunrise industry, the broader healthcare and wellness sector is characterized by its substantial scale and growth potential, weak cyclicality, and high entry barriers. The persistent rise in medical demand, coupled with current challenges such as an insufficient overall supply of high-quality medical services, structural imbalances, and inadequate health insurance funding, has created favorable investment opportunities for introducing social capital into the healthcare industry and facilitating industrial upgrading.

China’s healthcare market size is projected to reach RMB 8 trillion in 2020 and RMB 16 trillion by 2030. Leveraging continuous policy dividends and the vast market potential of the health industry, CR Teng Kang Fund has finalized a strategic signing ceremony with multiple partners after extensive communication and multi-dimensional alignment.

Penguin Almond Group, China Resources Capital, and Chengdu’s local state-owned assets jointly established a healthcare industry fund, forging a powerful alliance between healthcare industrial resources and the local government. This initiative promotes complementary advantages and deep integration of industrial, financial, and governmental resources. While fulfilling the objective of leveraging financial services to support the development of the national real economy, it facilitates the local implementation in Chengdu of healthcare projects backed by the fund, thereby supporting and driving the specialized, refined, and comprehensive development of the healthcare industry.

Penguin Almond has previously acquired medical projects such as Yu Ying Technology and Zhengfu Dental. Regarding the establishment of the China Resources Tengkang Fund, Wang Shirui, CEO of Penguin Almond, stated that the fund provides a crucial strategic lever for Penguin Almond’s ecosystem layout in the big health industry. Building on its existing foundation, Penguin Almond will employ more diversified investment approaches to continuously deepen and enrich its business systems in primary care and specialized medical services, comprehensively ensure service quality, enhance integrated service capabilities, and make high-quality health and medical services accessible to all.

Penguin Almond Group is China’s first full-industry-service group for public-private healthcare. As a core component of Tencent’s healthcare strategy, Penguin Almond leverages cutting-edge technologies such as big data and artificial intelligence to empower healthcare delivery. By coordinating online and offline resources through family physicians, it integrates primary care, specialized medical services, surgical center services, and corporate health services, creating an integrated online-offline healthcare closed loop. This approach provides the general public with lifecycle health management and establishes a diversified, comprehensive healthcare service system.

Penguin Almond is committed to building a comprehensive healthcare system and providing high-quality medical services to patients. With the infrastructure of the family doctor medical system in place, it centers on patients and their families to achieve an online-to-offline closed-loop medical service, thereby offering full-cycle health management to the public. To date, Penguin Almond has established a leading-scale network of offline clinics, with over 130 locations across 15 cities, encompassing various formats including general practice clinics, specialty clinics, surgical centers, and infirmaries.

China Resources Capital is a first-tier profit center and wholly-owned subsidiary of China Resources Group. It serves as the executor of the capital engine in the Group’s “Dual Engines, Two Wings” strategy for the 13th Five-Year Plan, acting as a bridge for industry-finance synergy and a driver of innovative development. As the Group’s industrial fund management platform, China Resources Capital conducts fund operations closely aligned with the Group’s industries and national macroeconomic policies. It focuses primarily on the Group’s five core business sectors, with major investments in areas including big health, integrated urban development and operation, big consumption, integrated energy construction and operation, technological innovation, and energy conservation and environmental protection. Currently, China Resources Capital operates 21 funds and two investment platforms, with assets under management exceeding RMB 100 billion.