Evergrande Real Estate, the Guangzhou real estate developer led by China billionaire Hui Ka Yan, has been in the news recently for its involvement in a takeover battle for another big developer, China Vanke, and its relatively high debt. Yet the company is facing challenges at its healthcare unit, too.
Evergrande Health Industry Group said on Friday that Peng Sheng resigned as an executive director and CEO effective March 17 “as he would like to focus on his other personal career developments.”
Peng, 41, had a three-year contract with Hong Kong-listed Evergrande Health when he was appointed CEO a year ago. He had previously worked, among others, for Varian Medical Systems.
Evergrande Real Estate bought 75% of a Hong Kong-listed media business, New Media Group Holdings, in 2015 as part of a push into the healthcare industry and then changed the company's name to Evergrande Health. Among its goals was to set up community health centers in developments built by Evergrande Real Estate, one of China’s largest property investors.
Evergrande Health's revenue in the first half of last year declined to 182 million yuan from 193 million yuan a year earlier. Net profit declined to 12 million yuan from 117 million yuan.
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