Securities abbreviation: Topchoice Medical Co.Inc(600763) securities code: 600763 No.: pro 2022-001 Topchoice Medical Co.Inc(600763)
Supplementary announcement on the purchase of relevant properties in the economic Park of alumni enterprise headquarters of Zhejiang University
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
1、 Basic information of transaction object
This transaction is to purchase the property assets of Zhejiang University Innovation and Entrepreneurship Research Institute Co., Ltd. (hereinafter referred to as “Zhejiang University Entrepreneurship Research Institute”), which is located in the core block of Yuhang District, Hangzhou city newly established in March 2021, and is located at the intersection of Lvting road and cangxing Street, Chengxi future science and Technology City, Hangzhou City, 800 meters away from Hangzhou West Railway Station, Longzhou Road Station of Metro Line 3 is planned in the park, which is 1.5km away from the First Affiliated Hospital of Zhejiang University (Yuhang hospital area) and 12km away from Zijingang Campus of Zhejiang University.
There are 3 properties subject to this transaction, with a total area of 40800 m2, including 2948.87 m2 of single building, 4 floors of above ground buildings and 2 floors of underground buildings; The high-rise building is 34733.54 square meters, with 18 floors planned; The supporting property is 3117.59 square meters, which is C4 buildings with 5 floors and 6 floors (that is, the company will purchase a 4-storey single storey building under construction, an 18 storey high-rise building under construction, and some areas of 5 and 6 floors in a high-rise building). At present, the three properties are under planning and construction. The builder is Zhejiang University Entrepreneurship Research Institute, and the delivery time is no later than December 31, 2023. According to the agreement, the company will complete the property right division registration procedures with the counterparty and obtain an independent property right certificate for the subject matter of this transaction.
2、 Transaction price and payment method
Transaction price: the transaction price of the three properties of the transaction object is 12000 yuan / m2. Properties of the same nature in the surrounding areas, such as the straight-line distance between oaks era future city and the transaction object is about 1km, and the average transaction price is 27000 yuan / m2; The straight-line distance between Huaxia heart and the subject matter of this transaction is about 1.2km, and the average transaction price is 27000 yuan / m2. Compared with the surrounding regions, the transaction price has advantages.
Payment method: the transaction price will be paid in three stages according to the industry settlement practice.
1) The company made an advance payment of 80 million yuan on December 31, 2021 and 66.88 million yuan in April 2021, totaling 146.88 million yuan, i.e. 30% of the contract amount as the down payment.
2) The company has settled the top of three properties in this transaction, and Zhejiang University Entrepreneurship Research Institute shall pay 20% of the contract amount, i.e. 97.92 million yuan, within 30 days after issuing the top settlement notice.
3) The company provided the list of property delivery materials at Zhejiang University Entrepreneurship Research Institute, and we paid 50% of the remaining contract amount, i.e. 244.8 million yuan, within 30 days after passing the acceptance.
The transaction amount will be paid to the account of Zhejiang University Entrepreneurship Research Institute. The Research Institute Company is a wholly-owned subsidiary of Zhejiang University Education Foundation. The money in the account is used for project construction. The company will also supervise the construction process of the subject matter to ensure the safety of the company’s funds.
3、 Necessity and feasibility of the project
1. Necessity
The company officially launched the dandelion plan at the end of 2018 and plans to complete the layout of oral medical institutions in all counties, urban areas and key towns in Zhejiang Province in the next 3-5 years. Hangzhou, Zhejiang Province, as the key city for the construction of the company’s oral hospital, plans to have 5000 dental chairs in Hangzhou in the future. The purchase of the property in this transaction and the construction of Hangzhou future science and Technology City stomatological hospital is an important part of the company’s strategic layout, filling the gap of the company in xinyuhang district market. At present, the company has 1007 dental chairs in Hangzhou, and nearly 1000 dental chairs will be added to the new hospitals under construction, such as Chengxi stomatological hospital, Zijingang hospital and Binjiang hospital. The company plans to continue to increase the number of dental chairs in Hangzhou. Xiaoshan hospital district and Chengbei hospital district will increase the capacity of large dental hospitals with more than 200 dental chairs. The goal is to further improve the market share and make Hangzhou the city closest to the dental market level of developed countries.
2. Feasibility
1) Regional feasibility. The company in the region where the subject of this transaction is located has not yet made a layout, which is 16km away from the company’s West Branch of Hangzhou stomatological hospital, 27km away from the Pinghai Road Hospital area of Hangzhou stomatological hospital, and 13km away from the planned Zijingang hospital area of Hangzhou stomatological hospital. The construction of stomatological hospital in the target area will radiate Yuhang District, fill the gap in the regional stomatological market and meet the stomatological diagnosis and treatment needs of surrounding residents.
2) Market feasibility. There are no other large stomatological hospitals around the subject of this transaction, and there are still a large number of stomatological needs that have not been developed; There are many medium and high-end residential areas within five kilometers around the project, and the number of potential clients is guaranteed; It is convenient to park around the address and is located on the upper cover of the subway. The nearby bus station is convenient and the traffic convenience is guaranteed.
4、 Hospital construction planning
The total area of the subject property of this transaction is 40800 m2, which will be used for the construction of stomatological hospital. Among them, high-rise buildings and single building will be used as hospital diagnosis and treatment area, and supporting properties will be used as hospital logistics support area and academic exchange area. The hospital plans to set up 80 beds and 500 dental chairs. It is planned to set up outpatient area, emergency area, medical technology area, operating area, inpatient area, disinfection supply center, equipment room, clean supporting room, etc. Construction planning: the three properties in this transaction will be constructed by Zhejiang University Entrepreneurship Research Institute and delivered to the company for use before December 31, 2023. After the delivery of the properties, the company will decorate and install equipment to complete the preparation of the hospital. It is less difficult for the project to obtain a medical practice license.
Financing: as of September 30, 2021, the balance of monetary funds of the company was 1.051 billion, the total assets was 4.238 billion, the asset liability ratio was 28.46%, and the net cash flow from operating activities was 680 million. After the delivery of the subject property of this transaction, the follow-up hospital construction fund is expected to invest 240 million yuan. At present, the company has abundant self owned funds and stable cash flow from operating activities. The construction fund demand of the project is planned to be solved through self owned funds and bank loans to ensure the normal construction of the project.
5、 Risk tips
1. The construction of the three underlying properties of this transaction has not been completed yet, and there is still a long time before delivery. Due to the possible changes of environment, weather and other factors during the construction process, the delivery of the underlying properties may be delayed. Please pay attention to the investment risks.
2. The purpose of this transaction is to meet the needs of hospital construction and operation and the implementation of dandelion plan. There are many factors in the subsequent hospital construction and operation that may affect the implementation of the plan, such as changes in industrial policies such as centralized procurement of oral consumables, lower than expected growth of oral market, lower than expected construction and operation, etc. Please pay attention to the investment risks.
The company will timely announce and disclose the follow-up construction of the project.
It is hereby announced.
Topchoice Medical Co.Inc(600763) board of directors January 4, 2022
