(Yicai Global) July 22 -- Suning Universal’s health unit is to buy three plastic surgeries from the parent firm’s industrial fund to bring the lucrative businesses under the direct control of the Chinese real estate conglomerate.
Suning Universal Health will pay CNY337 million (USD52.1 million) to take over Wuxi Suya, Tangshan Suya and Shijiazhuang Suya from Suning Universal Medical Beauty Industrial Fund Partnership and Suning Universal (Shanghai) Equity Investment which hold 99 percent and 1 percent stakes respectively, the parent firm said yesterday.
Bringing the three companies under the wing of Suning Universal Health will make them assets of Suning Universal and their revenues and profits will count towards the parent firm, it added.
All three are extremely profitable businesses. Wuxi Suya logged net profit of CNY3.36 million (USD519,800) in the first half on revenue of CNY2.8 billion (USD433 million). Tangshan Suya raked in profit of CNY2.72 million and revenue of CNY2.1 billion and Shijiazhuang Suya logged profit of CNY1.98 million with revenue of CNY2 billion.
Suning Universal Health also plans to spend CNY250 million to up its stake in the industrial fund to 50 percent from 45 percent.
Suning Universal’s share price [SHE:000718] closed up 1.06 percent today at CNY7.63 (USD1.18) today. Its stock has more than doubled this year so far.
Editor: Kim Taylor