PPP (Public-Private Partnership), i.e. cooperation between government and social capitals, is a project financing mode in public infrastructure.
Under this mode, private enterprises and private capitals are encouraged to cooperate with the governments and participate in the construction of public infrastructure. On October 25, 2016, the Central Committee of the Communist Party of China and the State Council issued the “Healthy China 2030” Plan Outline, in which the Chapter 17 of Volume 6 “Optimizing the Pattern of Diversified Medical Administration”, stipulating “to further optimize the policy environment and give priority to supporting social forces to organize non-profit medical institutions”.
To implement the spirit of the Third Plenary Session of the 18th CPC Central Committee, vigorously carry out the national “Belt and Road” strategy, further advance the modernization of the country’s governance and allow the market to play a decisive role in resource allocation, “Harmonicare” established the PPP Department on November 16, 2016. The head of this department has many years’ experience in government management works, knows well relevant economic management operations knowledge, and participates in the research and formulation of several domestic PPP projects as well.
“Harmonicare” PPP program will be based on BOT+IFA, ROT, DBOOT, BOO, O&M and other modes for more in-depth researches. In the PPP project cooperation, an excellent bidding consortium will be organized, including consulting company (undertaking by PPP Department or a consulting firm in strategic cooperation), law firm, large design company, large construction company, intelligent company, and investment company (fund company) and capital management companies, so as to improve project bidding and implementation success rate. We are committed to becoming a comprehensive service provider for the warehousing medical PPP project nationwide in the key links such as consulting, plan formulation and project implementation, etc.
The establishment of the “Harmonicare” PPP Department is a new attempt to acquire the commanding height of national PPP medical development and take the lead in carrying out the PPP mode in cooperation with specialty hospitals. The establishment of this department aims to create high-level medical project research planning and specialized consulting services in PPP mode, provide support for “Harmonicare” in the PPP field with intellectual support and professional support, and promote the successful implementation of the PPP mode. In addition, the PPP Department will maintain a good cooperative relationship with the China PPP Research Center and universities that conduct relevant research, and will gather experts from different fields to jointly study, design and implement the “Harmonicare” PPP model.
In the future, “Harmonicare” will achieve a three to seven-fold increase in market value through investment in PPP project mode innovation, realizing about RMB 15 to 22 billion market value, and will acquire about 70% shares in the national women and children specialist hospital PPP projects.
Harmonicare’s listing on the Hong Kong main board RMB raised RMB 1.59 billion, making Harmonicare the medical company with highest valuation in the Hong Kong stock market over the past three years, which fully demonstrated the capital market’s recognition of the future of high-end private hospitals. Harmonicare will accelerate the pace of development in the future and plans to continue expanding in the first and second-tier cities featured by high population density and high per capita disposable income and open 3-5 Harmonicare’s high-end women and children hospitals in the next three years; on the other hand, by participating in restructuring, merger and acquisition of public hospitals, we will accelerate the pace of expansion. We will continue to improve the quality and level of medical services through JCI certification and other measures so that more people can enjoy high-quality medical services for women and children and the century-old Harmonicare brand will be created.