BEIJING, Jan. 03, 2018 (GLOBE NEWSWIRE) -- iKang Healthcare Group, Inc. (“iKang” or the “Company”) (Nasdaq:KANG), a major provider in China’s fast growing private preventive healthcare services market, today announced that it will form an investment fund with AVIC Trust Co., Ltd. (“AVIC Trust”).  AVIC Trust’s ultimate shareholder is Aviation Industry Corporation of China.

The aggregate size the investment fund will not exceed RMB 502 million. An affiliate of Mr. Lee Ligang Zhang, iKang’s Chairman and CEO, and an affiliate of AVIC Trust will act as general partners and each contribute RMB 1 million to the investment fund. iKang’s PRC affiliated entity, iKang Healthcare Technology Group Co., Ltd. (“iKang Healthcare Technology”), and AVIC Trust will contribute up to RMB 70 million and RMB 430 million, respectively, to the investment fund as limited partners.

The Company has reached a re-financing arrangement with the investment fund.  Pursuant to the arrangement, the investment fund will purchase from iKang Guobin Healthcare Group Co., Ltd. (iKang Guobin), a wholly-owned subsidiary of iKang Healthcare Technology, 25% equity interest in New China Life Insurance Health Investment Management Co., Ltd. (“NCI Health”) with a cash consideration of RMB 425 million.  After the equity transfer, iKang Guobin holds 20% equity share in NCI Health.  iKang Guobin has the right to repurchase after 12 months and the obligation to repurchase in 36 months such 25% equity interest from the investment fund at a price equal to the original transfer price with an annual return rate of 10%.  The Company will act as the guarantor for the repurchase.

"Further to our announcement to set up the first healthcare investment fund in July this year, I am very pleased to partner with AVIC Trust to establish an investment fund for the purchase of 25% equity interest in NCI Health," Mr. Zhang remarked. "Whilst we will retain the flexibility to repurchase the asset, the cash of RMB425million from the sale will further strengthen our financial position to expedite investments in network expansion of medical centers and in development of value based services that resonates with customers' growing demand for premier preventive healthcare service in China."

"As we focus on advancing our strategies in the fast growing and rapidly changing private preventive healthcare market in China, our leadership team remains steadfast in their commitment to continue making a real difference as we strengthen our portfolio of value based services with shareholders long term interests at the forefront of our actions."

About iKang Healthcare Group, Inc.
iKang Healthcare Group, Inc. is one of the largest providers in China’s fast-growing private preventive healthcare space through its nationwide healthcare services network.

iKang’s nationwide integrated network of multi-brand self-owned medical centers and third-party facilities, provides comprehensive and high-quality preventive healthcare solutions across China, including medical examination, disease screening, dental service and other value-added services. iKang’s customer base primarily comprises corporate clients, who contract with iKang to deliver medical examination services to their employees and clients, and receive these services at pre-agreed rates. iKang also directly markets its services to individual customers. In the fiscal year ended March 31, 2017 and fiscal first half year ended September 30, 2017, iKang served a total of 5.58 million and 3.24 million customer visits, respectively.

As of January 3, 2018, iKang has a nationwide network of 111 self-owned operating medical centers, covering 34 of China’s most affluent cities: Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing, Tianjin, Nanjing, Suzhou, Hangzhou, Chengdu, Fuzhou, Changchun, Jiangyin, Changzhou, Wuhan, Changsha, Yantai, Yinchuan, Weihai, Weifang, Shenyang, Xi’an, Wuhu, Guiyang, Ningbo, Foshan, Jinan, Bijie, Qingdao, Wuxi, Kaili, Mianyang and Zhenjiang, as well as Hong Kong. iKang has also extended its coverage to over 200 cities by contracting with over 400 third-party facilities, which include selected independent medical examination centers and hospitals across all of China’s provinces, creating a nationwide network that allows iKang to serve its customers in markets where it does not operate its own medical centers.

Forward-looking Statements

This press release contains forward-looking statements. These statements, including management quotes and business outlook, are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "estimate," "project," "predict," "believe," "expect," "anticipate," "intend," "potential," "plan," "goal" and similar statements.  iKang may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These forward-looking statements include, but are not limited to, statements about: the Company’s goals and strategies; its future business development, financial condition and results of operations; its ability to retain and grow its customer base and network of medical centers; the growth of, and trends in, the markets for its services in China; the demand for and market acceptance of its brand and services; competition in its industry in China; relevant government policies and regulations relating to the corporate structure, business and industry; fluctuations in general economic and business conditions in China. Further information regarding these and other risks is included in iKang’s filing with the Securities and Exchange Commission. iKang undertakes no duty to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

IR Contact:

iKang Healthcare Group, Inc.
Christy Xie
Director of Investor Relations
Tel: +86 10 5320 8599
Email: ir@ikang.com
Website: www.ikanggroup.com

FleishmanHillard
Email: ikang@fleishman.com