BEIJING, June 30, 2015 (GLOBE NEWSWIRE) -- iKang Healthcare Group, Inc. ("iKang" or the "Company") (Nasdaq:KANG), China's largest private preventive healthcare services provider, today announced that it has formed a joint venture ("Joint Venture") with former shareholders of Yinchuan Ciming Clinic Co., Ltd. ("Yinchuan Ciming" or "Yinchuan Ciming Medical Center"). Yinchuan Ciming was franchised from Ciming Checkup Group, the third largest private preventive healthcare services provider in China. iKang now owns 70% equity in the Joint Venture, which itself controls 100% ownership of Yinchuan Ciming. Yinchuan Ciming is the largest private preventive healthcare services provider in Yinchuan and has been renamed to Yinchuan iKang. Yinchuan is the capital city of Ningxia Hui Autonomous Region in China.
This acquisition has particular strategic significance for iKang as it will act as a beacon to attract more high-quality Ciming franchises to join iKang. Yinchuan Ciming Medical Center ranked among the top Ciming franchises in 2014 in terms of revenue. In November 2014, iKang acquired three medical centers that were franchised from Ciming Checkup Group in the city of Shenyang. This acquisition marks the second time that a Ciming franchisee has turned down Ciming Checkup Group and others in favour of iKang.
Ms. Huiwen Zhao, Co-founder and Managing Director of Yinchuan Ciming, commented, "As a former operation director at the Medical Examination Center of Ningxia General Hospital of Armed Police Forces, which is one of the top hospitals in Yinchuan, we take medical quality and reputation very seriously. When we sought an equity partnership with leading private preventive healthcare services providers in China, iKang is unquestionably the only player that meets our strict criteria. iKang enjoys the best reputation among the top players in the sector and is the only provider which has adopted the same medical equipment and diagnostic standards as some of the best hospitals in China. If iKang offered franchise businesses, we would have chosen iKang previously. This was the reason why we chose to join iKang. We are very excited about this partnership and look forward to expanding the gold standard of healthcare services in China."
Mr. Lee Ligang Zhang, Chairman and Chief Executive Officer of iKang, also commented on the acquisition. "We are very pleased to welcome Yinchuan Ciming into the iKang family. Yinchuan Ciming has a mid-to-high end customer base which is very similar to iKang and allows us to pursue mutual benefits and create synergy through future development. I strongly believe that the addition of the high quality medical and service teams will further enhance our best-in-class brand reputation."
He added, "As a pioneer in China's preventive healthcare service market, iKang will continue to optimize our network by accelerating market expansion in tier 2 and 3 cities, especially in new cities such as Yinchuan, to enhance our competitiveness and offer a better nationwide service."
About iKang Healthcare Group, Inc.
iKang Healthcare Group, Inc. is the largest provider in China's fast growing private preventive healthcare services market, accounting for approximately 13.6% of market share in terms of revenue in calendar year 2014.
Through iKang's integrated service platform and established nationwide network of medical centers and third-party service provider facilities, the Company provides comprehensive and high quality preventive healthcare solutions, including a wide range of medical examinations services and value-added services including disease screening and other services. iKang's customers are primarily corporate customers who contract the Company to provide medical examination services to their employees and clients, and pay for these services at pre-negotiated prices. iKang also directly markets its services to individual customers. In the fiscal year ended March 31, 2015, the Company served a total of 3.6 million customer visits under both corporate and individual programs.
As of June 30, 2015, iKang's nationwide network consisted of 73 self-owned medical centers covering 20 of the most affluent cities in China, namely Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing, Tianjin, Nanjing, Suzhou, Hangzhou, Chengdu, Fuzhou, Changchun, Jiangyin, Changzhou, Wuhan, Changsha, Yantai, Yinchuan and Shenyang, as well as Hong Kong. The Company has also supplemented its self-owned medical center network by contracting with approximately 400 third-party service provider facilities in over 150 cities, which include selected independent medical examination centers and hospitals across all of China's provinces, creating a nationwide network that allows iKang to serve its customers in markets where it does not have self-owned medical centers.
Forward-looking Statements
This press release contains forward-looking statements. These statements, including management quotes and business outlook, are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "estimate," "project," "predict," "believe," "expect," "anticipate," "intend," "potential," "plan," "goal" and similar statements. iKang may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These forward-looking statements include, but are not limited to, statements about: the Company's goals and strategies; its future business development, financial condition and results of operations; its ability to retain and grow its customer base and network of medical centers; the growth of, and trends in, the markets for its services in China; the demand for and market acceptance of its brand and services; competition in its industry in China; relevant government policies and regulations relating to the corporate structure, business and industry; fluctuations in general economic and business conditions in China. Further information regarding these and other risks is included in iKang's filing with the Securities and Exchange Commission. iKang undertakes no duty to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.