Ping An Group
30 Apr 2021

Ping An-led Consortium Signs Restructuring Investment Agreement Relating to the Founder Group Restructuring

(Hong Kong, Shanghai, 30 April 2021) Ping An Insurance (Group) Company of China, Ltd. (hereafter "Ping An" or the "Group", HKEX: 2318; SSE: 601318) released the announcement of “Restructuring Investment Agreement Relating to the Founder Group Restructuring”. During the third meeting of the 12th Board of Directors the Group approved the related resolution authorizing Ping An Life Insurance Company of China, Ltd. (“Ping An Life”) to sign the “Restructuring Investment Agreement entered into by the administrators of Peking University Founder Group Company Limited, together with Zhuhai Huafa Group Co., Ltd. (representing the Zhuhai Municipality), Ping An Life Insurance Company of China, Ltd., Shenzhen Shenchao Technology Investment Co., Ltd., as well as Peking University Founder Group Company Limited, Peking University Founder Information Industry Group Co., Ltd., PKU Healthcare Industry Group Co., Ltd, Peking University Resources Group Limited, Founder Industry Holdings Co., Ltd.” (“Restructuring Investment Agreement”). Ping An Life, under the authorization of Ping An, participated in the Founder Group Restructuring.

Pursuant to the Restructuring Investment Agreement, the New Founder Group is funded and established by the Restructuring Entities through the injection of the Retained Assets other than the entire rights and interests in Founder Microelectronics. Subject to the selection of debt repayment plan by the creditors of the restructuring entities, Ping An Life and Huafa Group (representing the Zhuhai Municipality) will acquire no less than 73% equity interest in New Founder Group at a ratio of 7:3. No more than 27% equity interest in New Founder Group will be used to repay the creditors, if such creditors select to be repaid by the equity interest in New Founder Group. The final amount of the restructuring investment amount payable by the Investors for participating in the Founder Group Restructuring and the proportion of equity interest in New Founder Group to be acquired by the Investors shall depend on the creditors’ selection of the debt repayment plan. Among other things, Ping An Life will acquire 51.1% to 70.0% equity interest in New Founder Group at a consideration of RMB37.05 billion to RMB50.75 billion. The restructuring is subject to relevant vetting and approval procedures.

Boost Strategic Layout in The Healthcare Sector, Accelerate The Building of The Healthcare Ecosystem

In recent years, Ping An has focused on “Pan Financial Assets” and “Pan Healthcare” to comprehensively build the Group healthcare ecosystem and deeply serve the ecosystem participants in all aspects of the healthcare industry and empower the Group core financial services business. Healthcare is a dominant core business segment of the Founder Group, with PKU Healthcare Industry Group Co., Ltd., which owns the first-class medical brand name at the international level, and the Peking University International Hospital, the mission of which is to “build a first-class hospital at the international level”. With offline industrial scale, research and development and the application of healthcare technology or the collection of healthcare big data, these are all highly consistent with the strategic layout of the Company for building a healthcare ecosystem.

Meanwhile, by participating in the Founder Group Restructuring, the Company will establish a close partnership with Peking University. New Founder Group will continue the existing partnership between the Founder Group and Peking University and its subordinate units, and continue to use the brands and intellectual properties that the Founder Group has been authorized to use. In future, by focusing on the healthcare and information industries, the Company will carry out in-depth cooperation with Peking University in the field of medical education and research and the transformation of the achievements of enterprises, universities and scientific research institutions, and Peking University will provide the Company and New Founder Group with its support in expanding medical institutions under the principle of marketization and legalization.

Ping An remarked that participating in the restructuring of Founder Group is an important move of the Company to further boost its strategic layout in the healthcare sector, and is of great significance for the Company to actively construct its healthcare ecosystem. By closely combining the high-quality medical resources of PKU Healthcare Industry Group Co., Ltd. with the Company's professionalism in insurance business and medical technology capabilities, a “scenario-based, service focused, customer-centric and frequently-used” healthcare ecosystem will be built to create the new engine for continuous growth of the Company's future value and support the Healthy China initiative. Meanwhile, the Company will also actively promote the business enhancement, asset operation and capital operations as well as compliance reform of the other segments of Peking University Founder Group Company Limited. By participating in the restructuring of Founder Group, Ping An will strive to achieve outstanding investment returns and social benefits, and further enhance the company's comprehensive strength and corporate reputation.

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