WeDoctor Strategically Invests in New IVF Medical Group Under Maochen Group to Build Asia's Leading Assisted Reproductive Healthcare Provider

On May 17, 2018, Maxpro Group Holdings Limited (hereinafter referred to as “Maxpro Group”; HKEX stock code: 00273) announced that its subsidiary specializing in assisted reproductive medicine, Bowder Medical, would merge with The Women’s Clinic, a Hong Kong-based obstetrics and gynecology center, to jointly establish the largest assisted reproductive medical group in Hong Kong and a leading one in Asia (the New IVF Medical Group).This new healthcare group unites two giants in Hong Kong’s assisted reproductive medicine sector, pooling their top-tier medical talent and cutting-edge technologies. Upon completion of the merger, it will command approximately 30% of Hong Kong’s assisted reproductive healthcare market.

Meanwhile, Maochen Group has also signed a strategic investment agreement with WeDoctor Holdings Limited (“WeDoctor”), China’s leading healthcare technology platform, with WeDoctor becoming a strategic shareholder of the new IVF Medical Group.This collaboration marks WeDoctor’s first investment project outside mainland China, representing a significant step forward in its international development strategy.

The new IVF Medical Group will bring together nearly 30 specialists and experts from Bowden Medical and The Women’s Clinic, spanning reproductive medicine, obstetrics and gynecology, embryology, urology, and other related fields. Operating three clinics and three assisted reproductive technology laboratories, the group will provide comprehensive and reliable assisted reproductive healthcare services to the public in Hong Kong and across Asia, including intrauterine insemination (IUI), in vitro fertilization (IVF)/test-tube baby procedures, frozen-thawed embryo transfer, and oocyte cryopreservation.

Dr. Ho Wing Chiu, founder of Bode Medical, stated, “The merger with The Women’s Clinic has expanded the scale of the new IVF Medical Group, and we also warmly welcome WeDoctor’s equity investment as a strategic investor. We believe that the new IVF Medical Group will become a platform for attracting and gathering top-tier specialists in assisted reproductive medicine within the region, thereby further promoting the development and growth of the industry.”

Dr. Leung Ka Hong, founder of The Women’s Clinic, stated, “Over the years, I and The Women’s Clinic have been committed to providing high-quality medical services to our patients. We are highly optimistic about the growth potential and prospects of the assisted reproductive medicine market. We also aim to seize market opportunities by establishing a professional medical team under the new IVF healthcare group and leveraging big data for technical support.”

Dr. To Kin Nang, Medical Director of The Women’s Clinic and President-Elect of the Hong Kong Society for Reproductive Medicine, stated: “Through this merger, we aim to further integrate resources, share expertise and technology, provide high-quality medical services to patients, improve success rates, and help more couples fulfill their dreams of parenthood.”

Mr. Gao Baoming, Chairman and Chief Executive Officer of Maochen Group, stated: “Maochen Group has been committed to further integrating Hong Kong’s high-end healthcare market to build a medical platform with economies of scale. We are delighted to facilitate the collaboration between two industry giants, Bowtie Medical and The Women’s Clinic, to establish the largest talent pool for assisted reproductive medicine in Hong Kong, thereby meeting the growing market demand. This new IVF medical group will realize Maochen Group’s vision of positioning Hong Kong as an Asian hub for assisted reproductive medicine, providing the region with the most excellent and advanced assisted reproductive technologies. Dr. Ho Wing Chiu and Dr. Leung Ka Hong are pioneers in assisted reproductive medicine in Hong Kong, with Dr. Leung being the first physician to successfully complete an artificial insemination case in Hong Kong. The extensive experience and professional expertise of their two teams will accelerate the future development of the new IVF medical group. We are also honored to have Micro Medical Group invest as a strategic shareholder, jointly exploring the highly promising assisted reproductive medicine market.”

Mr. Zheng Dazu, Chief Operating Officer of Maochen Group, stated: “Hong Kong is renowned for its high-quality medical services. Driven by factors such as national policies and urban challenges, demand for reproductive healthcare services has surged. Maochen Group has seized this opportunity to capture market share by establishing a large-scale IVF medical group in Hong Kong through mergers and acquisitions. By focusing on delivering premium medical services in Hong Kong and the broader Greater Bay Area, the Group strengthens its positioning within the ‘integrated health industry-finance ecosystem.’”

Mr. Chen Hongzhe, Chief Strategy Officer of WeDoctor, stated: “WeDoctor has always prioritized high-quality projects that complement its core business. This investment marks WeDoctor’s first overseas investment project outside mainland China. The IVF Medical Group will bring substantial growth opportunities and synergies to WeDoctor, representing a critical component in strengthening our healthcare service delivery capabilities. Given the industry-leading positions of Baode Medical and The Women’s Clinic in the assisted reproductive technology market, coupled with the market’s significant growth potential and promising outlook, we believe this strategic partnership will generate enhanced synergies for our business and accelerate WeDoctor’s expansion into overseas markets.”

According to data from the Human Reproductive Technology Authority of Hong Kong, the number of assisted reproductive treatment cycles in Hong Kong increased from 6,400 in 2009 to 14,700 in 2016, representing a compound annual growth rate (CAGR) of 13%. In Hong Kong, public hospitals generally have limited budgets for fertility treatment services and face long waiting times. Consequently, the demand for local and cross-border fertility treatments is primarily met by private clinics, indicating significant growth potential for this market. Following the implementation of China’s two-child policy, it is anticipated that a large number of older women from mainland China seeking to have a second child will travel to Hong Kong for treatment, thereby driving rapid growth in Hong Kong’s assisted reproductive medicine market.