Capitol Health Limited (ASX:CAJ) has announced it has entered into Memorandum of Understanding with a subsidiary of CITIC Group, a large state owned Chinese conglomerate.
The proposed joint venture between Capitol and Shenzhen based CITIC Pharmaceutical would see Capitol assist the company develop a number of new diagnostic imaging centres.
The clinics are planned for cities where CITIC already owns hospitals so as to ensure a ready base of patient referrals.
The project with CITIC is part of a broader strategy by Capitol to participate in the fast growing Chinese diagnostic imaging market.
Capitol Health reported a net profit of $2.2 million at 31 December 2015.
