(Yicai Global) Jan. 4 -- Aier Eye Hospital Group is preparing to pay CNY471 million (USD68.3 million) to purchase equity in 14 hospitals that have Aier in their names in order to enhance the private Chinese ophthalmology hospital chain’s presence in regional markets and cement the firm’s leading position in the sector.

The stakes are held by two firms, Tianjin Aixin Business Management Partner and Nanjing Aier Anxing Eye Care Industry Investment Center, the Changsha, central Hunan province- based company said yesterday. Although Aier had previously authorized the two companies to use 'Aier' in their hospital names, the deal does not constitute a related transaction, it added.

This is not the first time that Aier has purchased equity in namesake hospitals. Last November, it bought into 26 such hospitals for CNY910 million (USD132 million). And as of January last year, it had authorized 320 medical institutions to use its name in their names.

Aier has a medical network spanning China, Europe, the US and Southeast Asia. As of June 30, it ran 187 hospitals and 132 clinics on the mainland and 115 eyecare centers overseas.

The 14 hospitals racked up a net profit of CNY17.3 million (USD2.5 million) in the first nine months last year on revenue of CNY287 million, it said.

In the first nine months last year, Aier logged a 20 percent jump in net profit to CNY1.1 billion (USD159.6 million) while revenue soared 16.4 percent to CNY4.9 billion (USD712 million), according to its latest earnings report.

Aier's share price [SHE:300015] closed down 0.6 percent at CNY30.69 (USD4.50) today. Earlier in the day it gained 1.5 percent to reach CNY30.96.

Editor: Kim Taylor