Entering Medical-related Business in China

Investments in SUNTOP, a solution provider in the dialysis field, and Beijing Century Kounre Hospital, a major hospital group

March 29, 2019

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Yoshihisa Suzuki, President & COO; hereinafter “ITOCHU”) announced today that it will make a full-scale entry into the medical-related business in China through the following investments.

1. Strategic business investment in SUNTOP, a solution provider in the dialysis field:

The dialysis market in China is expected to expand rapidly. ITOCHU carried out a strategic investment in Suntop Healthcare Group(hereinafter “SUNTOP”) to enter the market and acquired a 20% stake in the company.

In China, the number of patients with lifestyle-related diseases is increasing against the backdrop of rapid economic development, and currently there are approximately 500,000 dialysis patients. The number of potential patients requiring dialysis is expected to rise to 2 million in the near future. Under these circumstances, in December 2016 the Chinese government announced a policy to promote the construction of dialysis treatment facilities using private capital. Currently, the private sector is actively working to open independent dialysis clinics.

SUNTOP began its operation in 2003, with a sales agent in China for dialysis equipment made in Japan, and it has established business relationships with about 1,000 in-hospital dialysis centers. As a solution provider in the dialysis field, the company has expanded its business operations to comprehensively offer services, including not only the sale of dialysis equipment, but also the planning, design and maintenance of dialysis machines, educational training for doctors and nurses, and educational support for dialysis patients. In addition, in 2018 SUNTOP entered the independent dialysis clinic business, backed by the policy of the Chinese government, and it plans to aggressively open independent dialysis clinics throughout the country.

In order to contribute to SUNTOP’s business expansion and improvement of corporate value, ITOCHU will actively help the company build relationships with leading manufacturers in the dialysis field, as well as enhance treatment quality in its independent dialysis clinics and efficiently operate its facilities, in cooperation with Japanese medical institutions.
Japan boasts the top results in dialysis treatment internationally, and ITOCHU aims to contribute to improving the QOL of dialysis patients in China through this business, hoping that it will eventually help enhance the health of the Chinese people.

Investee’s Profile

Investee Richbase Limited
Headquarters Samoa
Established March 2003
Representative Huang, Shao-Ting
Business description Sale and maintenance of dialysis equipment, human resource education support and dialysis clinic operation business

2. Joint investment with CITIC Capital in a large general hospital business in China:

ITOCHU jointly invested with CITIC Capital Holdings Ltd. (headquartered in 28/F, CITIC Tower, 1 Tim Mei Avenue, Central, Hong Kong SAR; Yichen Zhang, Chairman and Chief Executive Officer; hereinafter “CITIC Capital”) in Beijing Century Kounre Hospital, a large private general hospital, under the umbrella of the CITIC Group.


ITOCHU jointly invested with CITIC Capital Holdings Ltd. (headquartered in 28/F, CITIC Tower, 1 Tim Mei Avenue, Central, Hong Kong SAR; Yichen Zhang, Chairman and Chief Executive Officer; hereinafter “CITIC Capital”) in Beijing Century Kounre Hospital, a large private general hospital, under the umbrella of the CITIC Group.


Positioning CITIC Capital as a strategic partner in China's health-related business field, ITOCHU will work with the company to promote entry into the hospital-related business in China. Through this investment, it aims to accelerate the growth of private hospitals by responding to the increasing demand for medical care in Beijing and supplying necessary funds. It also aims to offer Japanese-style service for managing hospital operations and contract management service of its hospital-related business. Moreover, ITOCHU will collaborate with Japanese medical institutions to consider deploying Japan-made medical devices and services to Beijing Century Kounre Hospital, and addressing the needs of Chinese patients for inbound treatment and medical checkups.

With its medical policy, the Chinese government is promoting the use of private capital to help expand private hospitals and shift patients from public to private hospitals to meet the rising demand for healthcare while curbing medical expenses. In China's urban areas, their standards of living have risen and populations have been aging. This has led to soaring medical demand and efficient hospital operations are required. ITOCHU believes that there is demand for Japanese-style business management and services in China.

Through this investment and the development of medical-related business, ITOCHU will partner with CITIC Group companies to build a network of healthcare business in the dialysis and other fields in China and other parts of Asia, with a view to expanding and developing its hospital business in the future.

(1)Profile of CITIC Capital:

Company name CITIC Capital Holdings Ltd.
Headquarters Hong Kong
Established 2002
Business description Investment company (USD 22 billion of assets under management)

(2) Profile of Beijing Century Kounre Hospital:

It is a private general hospital group with 11 hospitals (total of 7,000 beds) mainly in the Chaoyang district of Beijing.
Increasing the number of beds to 20,000 within the next five years is being considered.