HAO Capital Formed Joint Venture “TCL Healthcare” with TCL Group

China focused private equity firm HAO Capital announced the formation of a joint venture “TCL Healthcare” with TCL Group. HAO Capital made the investment via its healthcare investment platform company SKR.

TCL Healthcare, with the combined resources from HAO Capital, SKR and TCL Group, is positioned to become a leader in China’s diagnostic imaging market, providing a full suite of high quality products and services including X-ray, Ultrasound, DSA, CT and MRI, etc.

China has already become world’s 4th largest medical equipment market with greater than RMB 60bn of sales, among which, more than 1/3 is diagnostic imaging equipment. The market is expected to maintain a 20% growth rate over the next few years, driven by urbanization, aging population, more social healthcare coverage and increasing awareness in healthcare. Multinational companies accounted for more than 75% of the diagnostic imaging market and the percentage is even higher in the high-end segment. Currently, no Chinese medical equipment company has a full product line in diagnostic imaging equipment. Meanwhile, Chinese government is supporting the development of a few Chinese companies that can become capable alternatives to foreign imported diagnostic imaging equipment ones.

TCL Group is a leading Chinese consumer electronics company in China. TCL Group is leveraging its brand, manufacturing and technology platforms, marketing capabilities and management resources to build a leading Chinese medical equipment company. TCL’s strategy is similar to GE, Philips, Siemens and Toshiba, the top four medical equipment companies globally, each of which expanded from consumer electronics into medical equipment and technology as one of their core strategic business units over the past decades.

“We are optimistic about the investment opportunities in China’s medical equipment market, especially imaging diagnostics equipment where there’s a clear and high growth market for quality, locally developed and manufactured equipment,” said Elaine Wong, Partner and co-founder of HAO Capital, “with the alliance of HAO Capital, SKR, TCL and our respective management, expertise, and resources, we are confident that the company will become the industry leader in China.”

HAO Capital made the investment via its healthcare investment platform company SKR, which HAO Capital invested in 2009. SKR is established by Chih Chen, a 30 year veteran of the healthcare industry and ex-President of GE healthcare China. By combining HAO Capital’s strengths in project selection, execution, strategy and capital planning and SKR team’s domain expertise, operating and management experiences, HAO Capital acquires or invests in medical technology and service companies in China to help to improve products, performance and profitability, meeting the need for quality and affordable healthcare.

About HAO Capital

HAO Capital is a China focused Private Equity firm based in Beijing and Hong Kong, providing growth capital to Chinese companies. Founded in 2005 by three seasoned investment professionals, the firm currently manages total assets of USD500mn across two funds, with a bias for investments in Consumer, Healthcare and Light Industrial, including Clean/Greentech.


About TCL Healthcare

TCL Healthcare, formerly known as “TCL Medical Systems”, was established in 2009 October, specializing in R & D, production and sales of medical imaging equipment. TCL Healthcare was selected in 2010 as core enterprise member of Beijing City pharmaceutical industry leaping development project (also called “G20” project), and undertakes a number of key scientific research projects of the Beijing Municipal Science and Technology Commission and the State Ministry of science and technology. TCL Healthcare’s business spreads across mainland China and Southeast Asia. Mr. Chih Chen, former President of GE Healthcare China and current President of SKR, serves as Chairman of TCL Healthcare, and Mr. Hu Hai, General Manager of the former “TCL Medical System” as CEO.


About TCL Group

Founded in 1981, TCL is one of the largest consumer electronics enterprises in China with a global presence. TCL Corporation has three listed companies: TCL Corporation (SZ.000100), TCL Multimedia (HK.1070) and TCL Communication (HK.2618). Currently, TCL Corporation has set up four business units – TCL Multimedia Holdings, TCL Communication Holdings, China Star Optoelectronics Technology and TCL Home Appliances Group, as well as six business groups – System Technology Unit, Techne Group, Emerging Business Group, Investment Group, Highly Information Industry and Real Estate Group. In 2011, the brand value of TCL had exceeded RMB 50.118 billion, continuing to hold the No. 1 TV brand position in China today.


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