Dakang Medical Secures Hundreds of Millions in Strategic Investment from CETGC Capital to Accelerate Hemodialysis Industry Consolidation

On December 8, 2023, DiaCare Medical, a leading domestic chain of independent hemodialysis centers, announced that it had secured hundreds of millions of RMB in strategic investment from Genertec Capital Corporation Ltd. (hereinafter referred to as “Genertec Capital”), a subsidiary of the central state-owned enterprise China General Technology Group. Reportedly, this marks the largest investment by central state-owned capital in the nephrology dialysis sector. Following this round of financing, Genertec Capital will fully leverage its advantages in capital, talent, and industrial resources as a key state-owned enterprise in the health industry to promote comprehensive collaboration with DiaCare Medical. This partnership aims to further advance the high-quality development of independent hemodialysis centers in China and serve a broader population of patients requiring nephrology dialysis.

According to data released in July by the Nephrology Branch of the Chinese Medical Doctor Association, by the end of 2022, the number of registered hemodialysis patients in mainland China had reached 844,300, and the number of peritoneal dialysis patients had reached 156,600. The total number of dialysis patients exceeded 1 million, representing a 3.5-fold increase compared with the total number of dialysis patients in 2011.

Over the three years of the pandemic, many specialized medical service sectors were impacted to varying degrees. However, due to the steady growth in patient numbers and the high-frequency, essential nature of dialysis treatment, independent hemodialysis centers played an indispensable role during this period, generating significant social value. By 2022, the cumulative number of hemodialysis centers in China reached 7,298. Notably, there was a marked increase in 2022 alone, with 1,234 new centers added within the year, underscoring the strong value of this sector.

Behind the growing demand for dialysis among patients with uremia lies not only the long-term dedication and vigilance of healthcare professionals, but also a shared health challenge facing the entire patient community, the industry, society, and even the nation.

The healthcare and wellness industry has always been a key investment focus and strategic mission for state-owned capital. As part of the national health and wellness industry, the kidney disease dialysis sector serves patients with uremia, whose unique needs make it an essential component of basic public welfare, aligning well with the investment direction of state-owned capital.

At the third meeting of the Central Commission for Comprehensively Deepening Reforms held on November 7 this year, it was emphasized that reforms should be advanced to concentrate state-owned capital in public services, emergency response capabilities, and public welfare sectors that are vital to national welfare and people’s livelihoods, thereby better serving the construction of a new development paradigm and promoting high-quality development.

Genertec Capital is the specialized capital operation platform under Genertec. Its parent company, China General Technology (Group) Holding Co., Ltd. (Genertec), is a key state-owned enterprise directly administered by the central government, focusing on three major sectors: advanced manufacturing and technical services, pharmaceuticals and healthcare, and trade and engineering services. Pharmaceuticals and healthcare represent a core industrial direction for Genertec. In the medical services sector, Genertec operates 371 medical institutions across 25 provinces and municipalities in China, with 51,000 managed hospital beds. It has developed into a central state-owned healthcare group characterized by its leading number of beds, comprehensive network coverage, and distinct full-industry-chain capabilities.

DiaCare Medical is the pioneer and leader of chain independent hemodialysis centers in China, and was a key pilot unit for independent hemodialysis centers under the former Ministry of Health. Established in 2012, the company currently operates the largest number of independent hemodialysis centers nationwide, with nearly 70 centers in operation across 15 provinces, including Jiangxi, Shandong, and Guangdong. The company has also built China’s largest and most stable team of dialysis service professionals, with over 1,300 specialized physicians, nurses, and technicians group-wide, ranking first in the industry in terms of talent size.

“With the year-on-year increase in patients with diabetic nephropathy and the advent of an aging society in China, existing dialysis institutions are far from meeting the future growth in patient demand. The significant gap between market supply and demand makes the hemodialysis center sector a long-term, high-potential industry with substantial economic and social value,” said Chen Shaobo, Chairman and Founder of DiaCare Medical. “Following the introduction of General Technology Capital, a central state-owned enterprise, as a strategic investor, both parties will continue to increase investment and enhance capabilities in operational efficiency, supply chain management, and standardization of medical care, nursing, and information systems. In actively supporting the ‘Healthy China’ national strategy, improving public welfare, and addressing patient needs, DiaCare Medical will continuously elevate its healthcare service standards, further extend high-quality dialysis resources to grassroots regions, and better serve a larger number of patients with uremia.”

Zheng Chao, Deputy General Manager of Genertec Capital Co., Ltd.Indicates：Over the past decade since its establishment, DiaCare Medical’s management team, led by founder Chen Shaobo, has accumulated extensive industry experience, laying a solid foundation for the company’s standardized and large-scale development. Although DiaCare Medical currently ranks among the industry leaders in terms of the number of hemodialysis facilities, China’s hemodialysis sector remains fragmented. Compared with the continuously growing population of patients with end-stage renal disease (ESRD), the number of independent hemodialysis centers is relatively low compared to other medical specialties, indicating a significant gap in the development of the dialysis industry. To better serve the vast number of patients with chronic kidney disease (CKD) and those requiring dialysis, the Healthcare Division of China General Technology Group will continue to foster innovative business and profitability models, supporting DiaCare Medical in becoming a global leader in the nephrology and dialysis industry.

Behind every dialysis patient is a family. China General Technology Group will join forces with DiaCare Medical and other industry practitioners to further promote the high-quality development of independent hemodialysis centers in China, so as to serve more patients with chronic kidney disease and end-stage renal disease requiring dialysis, create greater social value, demonstrate the “pillar” role of central state-owned enterprises, and fulfill their responsibilities and commitments.