11 February 2010

Huihao Group is a leading distributor and provider of supply chain services

Hua Xia Healthcare has announced plans to acquire Huihao Group, one of the leading distributors and providers of supply chain services for pharmaceutical and healthcare products in Fujian Province. The Company operates the largest national pharmaceutical distribution centre in Fujian Province.

The healthcare industry in Fujian Province has begun to enjoy a series of favourable socio-economic factors. According to the local government statistics, the total consumer expenditures on healthcare in Fujian Province have steadily increased year-by-year in recent years with spending of over HK$20.0 billion in 2008.

The Fujian based Huihao Group is a first-tier distributor of more than 100 pharmaceutical products supplied by well-renowned domestic and foreign pharmaceutical manufacturers. It has more than 1,900 distribution customers in Fujian, including more than 110 local distributors and more than 1,000 hospitals and pharmacies. It also sells a broad range of pharmaceutical products directly to more than 100 hospitals. With 85 fully owned drugstores across the province, its retail chain is the largest in Fujian. The chain carries the well-established and widely recognized ‘Huihao Sihai’ brand and has been certified to be in compliance with the Good Supply Practices (GSP).

The unique business model of combining both wholesale and retail of pharmaceutical products has strategically positioned the Huihao Group as one of the market leaders to take the full advantages of the present economic and healthcare conditions.

In particular, considering the stringent regulatory requirements and price control measures as imposed by the new healthcare reform, the Huihao Group will benefit from its comprehensive distribution and retail services, operation scale and financial strength, thus maintaining a leading position in the Fujian Province, and looking forward to further expansion beyond the region.