As a listed company, HokaiCo., Ltd., by virtue of its strong financial strength, has combined with the leading advantages of the enterprise in the fields of minimally invasive therapy, medical gas systems, digitizing clean operating department, basic-level digital medical imaging systems etc., and has established a solid strategic partnership with hundreds of stronger product / service suppliers providing mechanical and electrical equipment and installation, hospital decoration design and construction, medical equipment, ancillary equipment and facilities etc.Through the formation of comprehensive advantages of technology and integration of purchase and supply in scale and specialization, all kinds of public hospitals at all levels, especially those at the county level have been offeredhigh-quality, low-risk overall solutionsof hospital construction with small investment and quick revenue, as well as “Turn-key Project"service for expansion, relocation and other projects of hospitals.

 

A.Purpose andMission

1.To positively response to the country’s overall economic and social development strategy of improving people's livelihood and building a harmonious society, to work with the overall goal of the new national health care reform and key content and to support the national economy and the cause relating to people's livelihood 

2.To assist local governments to solve funding problems of “undertakingmajor health investmentresponsibility",to develop new funding sources for hospital development under the circumstances of limited "public welfare" positioning of public hospitals and profit scope

3. To practice the country’s guidelines and policies to encourage and guide the development of medical and health undertakingswith the use of social capital, to gradually ease fundamental contradiction betweenthe overall supply and demand of health resources and uneven regional distribution to solve the poor accessibility and affordability of health care services.

 

B.Goal and Significance

1.To assist local governments to overcome financial difficulties for faster and better improvement of peoples’ livelihood, and for the benefit of local people

2.To stimulate leapfrog development of hospitalswith capital strength, and to enhance the level of local medical and health undertakings

3.To lower overall construction costs, shorten the construction period and ensure construction quality through integrated construction

4.To help hospitals carry out development and operation in such key disciplines as tumorstudies, to enhance hospital revenue and to alleviate the pressure of repayment of principle with interest

 

C.Main Content

1.Mechanical and electrical equipment purchase and installation

2.Hospital decoration design and construction

3.Purchase of medical equipment (diagnostic equipment, therapeutic equipment, auxiliary facilities etc.)

4.Purchase of supporting equipment and facilities (office furniture, office equipment, etc.)

5.Autonomous and proprietary solutionsof HokaiCo., Ltd.and a series of technical equipment

6.Overall construction of minimally invasive tumor treatment centers

7.Overall construction of medical gas system

8.Overall construction of digitized cleansing operation departments

9.Overall construction of basic-levelmedical image digitizing system

10.Overall construction of hospital information system

11.Overall construction of hospital CIS system (VI, BI, MI)

Note: For thoseprojects with better conditions and appropriate scale,overall hospital construction of civil works can be carried outafter the assessment.

 

D.Funds Source

Provided by HokaiCo., Ltd.

 

E.CapitalAmount 

Comprehensivelyevaluated on the basis of the hospital's actual funding needs and ability to repay

 

F.Funds Rate

The funds rate stipulates by the lending rate published by the People's Bank of China, and should be calculated in accordance with the actual use of amount and time from the date of the funds paid by the hospital to Hokai Co., Ltd.on a monthly basis.

In case the People's Bank adjusts the lending rate, corresponding adjustment would be made according tothe actual timing and magnitude.

 

G.Principal Repayment

Since the completion of the hospital project, theprincipal would be repaidby the hospital through monthly installments to HokaiCo., Ltd. (matching monthly repayment orgraduated monthly repayment) with payback period of 5 years in principle (special, major projects are negotiable).

 

H.OperationProcedures

1.Both the hospital and HokaiCo., Ltd. have cooperation intentions.

2.The hospital and HokaiCo., Ltd.conductsite visits to each other.

3. The hospitalcooperates with HokaiCo., Ltd.to carry out project risk control assessment.

4.The hospitalnegotiates withHokaiCo., Ltd.on cooperation matters and then bothreach a written memo.

5.The hospitalsworks with HokaiCo., Ltd.to formulate a total budget of the project.

6.The hospital submits the project proposal to the government, applyingfor construction investment and financing and the total budget.

7.The government approvesby consent the application of investment and financing construction and itstotal project budget.

8.The hospital solicits bids for theproject.

9.The hospital and HokaiCo., Ltd.sign the project agreement.

10.HokaiCo., Ltd.disburses funds in batches pursuant to the agreement and implements the project.

11.The hospital pays capital interest to HokaiCo., Ltd. (monthly)in accordance with the agreed installments.

12.After passing the acceptance of the project, the hospital and HokaiCo., Ltd. handle transfer procedures.

13.The hospital repays principal and interest to HokaiCo., Ltd. (monthly)according to the agreed installments.

 

I.Overall Solution Advantages of the HokaiHospital Co., Ltd. Construction

1. Strong, diversified financial strength

As a listed company, HokaiCo., Ltd.possesses strong financial strength.The main sources of funding include: capital market funds, own funds of the enterprise, bank creditcapital, financial markets funds, with the mobilizablefunds amounting toseveral billion RMB.

2. Leading professional level at home and abroad 

For more than 10 years,HokaiCo., Ltd.have professionally and continuously attached great importance to the fields of minimally invasive comprehensive treatment, medical gas systems, digitizing clean surgical department, basic-level medical image digitizing system, hospital information system and hospital CIS system. The Company also owns a domestic first-class expert team and technical strength,providing the nearly ten thousand hospitals with related equipment, and has accumulated multiple project paradigms.

3.Extensive and solid strategic cooperation

A solid strategic partnership has been established with hundreds of product / service providerswho specializein stronger mechanical and electrical equipment and installation, hospital decoration design and construction, medical equipment, ancillary equipment and facilities etc.

4. Personalized and manifold cooperation contents

The whole or part of the hospital construction can be performed based on the actual situation of the hospital, which includes: the purchase and installation of mechanical and electrical equipment, hospital decoration design and construction, medical equipment purchase, the purchase of supporting equipment and facilities, and even hospital marketing, operations, management, team, brand value-added service etc.

5.Simple and efficient risk control assessment

The diverse funding sources of HokaiCo., Ltd. are different from credit, financial leasingor other financing ways ofdomestic banks, which can effectively disperse investment risks and make all of the funds for Hokai‘s own independent use. Meanwhile risk control assessment is simple and quick.

6.Flexible and easy repayment period

Investment (repayment) period can be shorter or longer (5 years in principle).There is no such financial pressure as bullet repayment, butthe monthly repayment with little debt burden.And the cost of capital use is in light with the lending rate announced by the People's Bank of China.