Hao Becomes Billionaire Making Devices to Treat Cancer in China

Feb 18, 2014 11:00 am ET

Feb. 19 (Bloomberg) -- Hao Zhenxi has become a billionaire after shares of Zhuhai Hokai Medical Instrument Co. surged 40 percent this year as the Chinese government spends more on health care.

Hao and wife Cai Mengke hold a 43.6 percent stake in Hokai, the company’s interim report showed. The shares plus collected dividends are worth more than $1.1 billion, according to the Bloomberg Billionaires Index.

Hokai, founded by Hao in 1996 in the southern city of Zhuhai, makes equipment and devices used to treat cancerous tumors and supply medical gases. Its products are used in nearly 10,000 hospitals across the country, according to its website.

Since the company sold shares in Shenzhen in 2011, its stock has gained about 500 percent. On January 14, Hokai said it expects 2013 net income to climb by 40 to 60 percent. Its 2012 profit was 123.8 million yuan ($20.4 million).

Two calls to Hokai’s board secretary Su Cailong weren’t answered yesterday. Hao couldn’t be reached for comment.

Medical services have grown in China as the government has boosted its annual budget for medical and health-care spending by 27 percent to 260.25 billion yuan in 2013 from a year earlier.

Evergrande Real Estate Group Ltd., led by another Chinese billionaire Hui Ka Yan, said in December it reached an agreement with Brigham and Women’s, a nonprofit hospital in Boston, to open a hospital in China. Hui is worth $5.3 billion on the Bloomberg Billionaires Index.

Hokai fell 0.85 percent to close at 36.27 yuan in Shenzhen trading yesterday.

The index is a daily ranking of the world’s richest people based on changes in markets, the economy and Bloomberg reporting. Each net worth figure is updated every business day at 5:30 p.m. in New York. Stakes in publicly traded companies are valued using the share’s most recent closing price. Valuations are converted to U.S. dollars.

--Michael Wei. Editors: Patrick Chu, Frank Longid