Dear Colleagues,

Our company has been through many transitions. From private to public on Nasdaq, to private with private equity investors, to this year’s big news: We are a public company again- this time on the New York Stock Exchange.

In our first iteration we were a real start up, with founders and all colleagues in their early twenties. We founders worked for years with no pay check, paying others out of our savings. In our 1994 Nasdaq IPO we sold shares based on our success as a medical equipment distribution company with the ambition of becoming a healthcare service provider. In 2014 we went private based on our desire to become a pure-play healthcare service provider, divesting our distribution company. Now we are public again, with a 1.4 billion dollar valuation, and the ambition of becoming the largest, standard-setting healthcare services platform in Asia.

The scope of this ambition could not have been predicted at our founding. The road to this point has been long, with many challenges and corporate changes during our development. One thing however has never, and will never change – that is everything that we do is fueled by the desire to be a positive force in China’s healthcare landscape. From the importation of the first ultrasound machine, to the training of thousands of ultrasound doctors, to the founding of our first hospitals, to our current training programs for young doctors, to the quality and safety standards we set and keep, to the opening of our 7th hospital and our 14 clinics – we have been that positive force.

Becoming a public company in December was the crowning event of a year full of achievements. Every hospital, every clinic and every department played its part in our success.

Beijing United Family Hospital has for over two decades maintained steady growth and development. After laying a strong foundation with its signature services, it has achieved rapid development of the orthopedics, surgery, and family medicine departments, in order to meet our patients’ full life-cycle medical needs. This year, BJU once again pioneered new technology by being one of the first hospitals in China to use the Mako Robot in joint replacement surgery, improving outcomes and speeding up recovery. BJU once again delighted the community when it was able to save a premature baby who weighed only 1.3 pounds at birth. Over the two month period under the care of our team, the baby thrived and reached a healthy weight of 4.4 pounds on discharge. This miracle of life reaffirms the significance of our work!

Shanghai United Family Puxi Hospital successfully made the move to its new location at 699 Pingtang Road. The beautiful newly built facility is more than three times the size of the original hospital building, and able to house many new services. The team achieved the move this October with hardly any impact on operations- closing the clinics for only one weekend day. Even the NICU babies were relocated without incident- now all happy in their new home. And, proudly, in December our Puxi hospital delivered its 10,000th baby. The Shanghai Service Area was expanded by the addition of our Hanghzou Clinic. The presence in Hangzhou is a great opportunity for us to learn more about this market.

2019 was the first full year of service for Shanghai United Family Pudong Hospital. During the year, the signature departments gradually took shape; the Emergency Department, NICU, and inpatient wards were opened successively delivering medical safety and stability, improved service quality, and a substantial increase in total business.

Guangzhou United Family, now our biggest facility, has achieved excellent results after the successful opening of the new hospital in 2018. It has ramped up more quickly than any other hospitals in our system. OBGYN, PPR, and Dermatology have achieved outstanding results, and the hospital has completed many complex operations including tumor resection surgeries, laying a good foundation for the future development of United Family Healthcare in the Greater Bay Area.

Despite its ongoing space limitations, our smallest hospital successfully obtained Ophthalmology and ENT licenses. General medical services achieved a significant growth. More men and children are beginning to choose TJU. The IVF Center continues to achieve world class success rates.

Qingdao United Family Hospital, having built a strong foundation in Obstetrics and Pediatrics has begun expanding other specialties. The hospital also responded to the government’s call for poverty alleviation, and has been working with others in the Qingdao community to carry out medical assistance activities in Lixian County, Gansu Province, bringing ICARE values to the countryside and helping numerous people in need.

Beijing United Family Rehabilitation Hospital was officially awarded the title of Postpartum

Rehabilitation Training Base by the Chinese Maternal and Child Health Association in 2019. In addition to postpartum rehabilitation, the number of patients recovering from neurological and orthopedic rehabilitation has continued to increase significantly. In fact the hospital reached full occupancy status several times during the year, and will work to increase its capacity for neuro services in the coming year.

2019 has been a great year for our New Hope Oncology Center. The center helped to ease the burden of thousands of cancer patients. It conducted numerous MDT consultations with Chinese and Internationals partners. Many public welfare activities were organized throughout the year, directly benefiting more than 200 patients, and attracting more than 2 million web based attendees.

In addition to Beijing Clinics eight outpatient clinics, its nurses now also manage the healthcare for six international schools. Jianguomen Clinic obtaining the license as an official Medical Check-up Center was a particularly pleasing moment in 2019. At the same time, the clinics have established a team of private doctors and personal health managers, launched a population health management model, and promoted primary care providers to every customer, strengthening the role of United Family as a health guardian.

After one and a half years of operation, in 2019, Bo’ao United Family Medical Center has served customers from all over the country. At the same time, it has become an important window for publicizing United Family Healthcare, and the operation and services of the Center have been highly recognized by customers and governments at all levels.

In 2019, the Postpartum Rehabilitation business grew and developed in all markets serving over 1,000 PPR customers. Youhujia provided over 50,000 days of postnatal in-hospital and homecare services. The development of these two businesses has been strongly supported by the medical team, and the patient-centric ICARE spirit has been passed on to this thriving new business.

United Family Dental has been a new Business Unit since July 2018. During this time, UFD made impressive progress. This was accomplished by enhancing the patient experience, focused Sales & Marketing, and by charting a clear strategic path for dental specialty development, specifically in areas such as Pedodontics, Orthodontics, Cosmetics, and Periodontics.

Besides completing the construction of our new hospital in Puxi, the construction of our new Women’s and Children’s Hospital in the north of Beijing is well under way, while the design of our Shenzhen hospital is complete and construction will begin in the New Year. We have also begun the planning of a new facility in Hangzhou. Thanks to the work of business development colleagues, we also have a robust pipeline of future projects around China, and we plan to grow that pipeline with new partners and projects next year.

The Foundation continued its annual HPV screening trip. This year the volunteer medical team went to Inner Mongolia to deliver on-site screening to 7000 mothers of various ethnicities. This year the Foundation, became a fully accredited American Heart Association training center, thus expanding its capacity building program by providing advanced life support training to volunteer doctors and nurses.

We are so fortunate, that in our new corporate public iteration we have as our partners the great guys at New Frontier Group. They add their extensive experience in finance and fundraising to our operational and development abilities. But even more importantly, they share our passion for providing the best premium healthcare in Asia, and extending our services to ever more people in China, while making a positive impact on society as a whole.

In 2020 I hope that we can continue to innovate our model to improve our patient care, offer a platform for the professional and personal development of our colleagues, find ways to improve our efficiency and scope to fulfill our commitment to our investors, and most importantly continue to deliver the care and cure that our patients deserve. At the same time I would like to commit our efforts in 2020 to find ways to do what we do in an ever greener way, to reduce our corporate carbon footprint and to fulfill our commitment to society and the earth.

Thank you everyone for your contribution in 2019, and I wish you and your families a happy new year filled with peace and health!

 

Warm Regards,

Roberta