China — December 16, 2024 – Pengrui Group Co., Ltd. ("Pengrui Group") is proud to announce that Pengrui General Hospital (Tianjin Pengrui Hospital), located in Tianjin, China, has successfully passed the acceptance review by the city's Health Commission and has obtained the "Medical Institution Practice License," becoming the first wholly foreign-owned tertiary general hospital in China. This tertiary general hospital is equipped with 500 beds, with a total investment of approximately 1 billion RMB, and will begin operations soon.

In September 2024, three Chinese government departments jointly issued a notice allowing the establishment of wholly foreign-owned hospitals in several key cities, including Beijing and Tianjin. Pengrui Li Group, which has been deeply involved in the healthcare and elderly care sectors for many years, quickly responded by adjusting its healthcare business strategy and actively taking actions to align with the policy direction.

Tianjin Pengruili Hospital is located in Xiqing District, adjacent to Tianjin South Railway Station, and it is an important part of the medical sector of Tianjin South Railway Station Pengruili International Health Business Travel City. Tianjin South Railway Station Pengruili International Health Business Travel City is the nation's first large-scale high-speed rail transit-oriented integrated project (TOD) that combines elderly care, medical services, and hotels. The business travel city also includes the Pengruili Health and Care Community with over 1,800 elderly care beds and four hotels of different star ratings with approximately 1,000 rooms in total.

Pengruili Group is the developer, owner, operator, and manager of Tianjin Pengruili Hospital. Tianjin Pengruili Hospital was designed by the award-winning international architectural design consultancy, strictly built according to national standards, providing doctors and medical teams with a unique 'asset-light shared medical space' concept, allowing them to focus on providing medical consultations and treatments without having to invest in medical facilities and equipment.

Doctors and medical groups can leverage shared medical facilities and services provided and managed by the Pengruili Group (the 'Shared Medical Platform'), including advanced operating rooms, cutting-edge diagnostic imaging equipment, and fully equipped clinical laboratories. The introduction of the Singaporean 'Shared Medical Platform' concept at Tianjin Pengruili Hospital not only offers convenience but also significantly reduces costs, helping doctors and medical groups expand and upgrade their businesses.

Tianjin Pengruili Hospital will form a high-level medical expert team to provide comprehensive medical services across multiple disciplines, including orthopedics, otolaryngology, nephrology and immunology, cardiovascular diseases, and oncology. The hospital has an International Department dedicated to offering customized medical services, such as health maintenance and chronic disease management. Currently, Tianjin Pengruili Hospital has established partnerships with numerous well-known doctors and medical groups.

The 500-bed Tianjin Pengruili Hospital is a key component of the Pengruili International Health and Business Travel City medical ecosystem at Tianjin South Railway Station. Together with the planned approximately 200-bed secondary rehabilitation hospital—Tianjin Pengruili Rehabilitation Hospital, the more than 300-bed tertiary brain hospital—Tianjin Yibo Pengruili Brain Hospital, and the planned approximately 300-bed Tianjin Pengruili Nursing Home, it forms a comprehensive medical network to enhance medical service support for elderly residents in the healthcare community. With a total of 1,300 beds in a diverse medical combination, leveraging the convenient metro and high-speed rail network at Tianjin South Railway Station, it provides multi-level and diversified medical services for residents of Xiqing District and the Beijing-Tianjin-Hebei region.

Mr. Pan Xiyuan, Executive Chairman and CEO of Perennial Group, said, "We are delighted to develop, hold and operate China's first wholly foreign-owned tertiary general hospital, Tianjin Perennial Hospital, in response to China's recently announced policy to open up the healthcare sector. This milestone is all the more significant as the first general hospital project that Perennial Group has built and personally managed. ”

Mr. Pan added, "Our unique concept of 'asset-light shared healthcare space' provides different cooperation models for doctors and physician groups, allowing us to build an extensive and sustainable ecosystem with these medical experts to further drive the growth of Perennial Group's healthcare business in China. Singapore's shared healthcare model also allows them to expand and scale with us at the lowest cost. ”

Commenting on the opening up of China's healthcare market, Mr. Pan Xiyuan said: "We highly appreciate China's policy of opening up foreign investment in the medical field, which has not yet been adopted in many countries around the world. This forward-looking policy sends a strong positive signal to the international investment community and instills confidence in investors interested in China's healthcare sector. In view of China's development prospects, foreign investment and cooperation between foreign investment and local enterprises have been promoted. This policy further strengthens our long-term strategy to build, hold and operate more hospitals in our integrated healthcare programs or health-focused TOD programs. ”

Mr. Pan Xiyuan further added, "Tianjin Perennial Hospital will create conditions to attract more foreign patients to receive private medical services in China, thereby enhancing the international status of China's medical industry and promoting the development of the medical tourism industry. Governments at all levels in Tianjin have provided enterprises with a more efficient and convenient business environment and first-class services by standardizing the approval process and improving work efficiency. We are confident in the prospects of China's healthcare market and will actively promote exchanges and cooperation between foreign investment and local hospitals, strengthen the introduction of overseas medical experts and medical technology, and work together to improve the standard of private healthcare services to complement the government's public healthcare services and benefit the society. ”

Perennial's hospital portfolio in China is steadily growing. In addition to the 1,300 medical beds in Tianjin Perennial Health City, a series of medical and health projects in Kunming, Xi'an and Guangzhou are being developed, with more than 3,000 new beds expected to be added.