YESTAR HEALTH is considering establishing a joint venture with Genetron Health in Singapore and may develop business in Indonesia, Malaysia, and Singapore

According to the announcement from YESTAR HEALTH (02393), the company is currently considering establishing a joint venture with New Genetron Holding Limited (Genetron Health) in Singapore (the proposed joint venture) and may develop business in Indonesia, Malaysia, and Singapore. According to the current plan, the proposed joint venture will register a new entity in Indonesia, which will specialize in designing, constructing, and operating clinical molecular diagnostic laboratories focused on precision oncology, and, where appropriate, establish production facilities for in vitro diagnostic reagents and reagent kits locally. In other words, the proposed joint venture will establish advanced medical laboratories in Indonesia to provide advanced genetic testing, including cancer screening, to assist doctors in early disease detection and tailor treatment plans for patients. The proposed joint venture will focus on providing advanced molecular diagnostic services (i.e., using cutting-edge laboratory tests to detect and understand diseases at the molecular level), particularly in the field of precision oncology (i.e., providing customized cancer care based on each patient's unique genetic mutations and cancer types). Key products include early cancer screening (for example, the innovative HCCscreen and HCCscan products developed by Genetron Health based on NGS or qPCR technology, which have received global recognition, including Breakthrough Device Designation from the U.S. Food and Drug Administration (FDA) for HCCscreen) (i.e., using advanced genetic technology for specialized blood tests to detect liver cancer at an early stage), comprehensive genomic analysis (i.e., analyzing multiple cancer-related genes simultaneously to provide information for selecting the best treatment options), minimal residual disease (MRD) monitoring (i.e., using highly sensitive laboratory techniques to check for any residual cancer cells after surgery), and non-invasive prenatal testing (NIPT) (i.e., providing safe blood tests for pregnant women to check the health status of their babies without any risk). Initial operations will focus on laboratory-developed tests (LDT) and will gradually expand to local manufacturing and broader insurance coverage using Genetron Health's technology and regulatory combination. It is anticipated that the proposed joint venture will establish clinical and business partnerships with well-known hospitals and medical institutions in Indonesia for sample collection, product validation, and early clinical applications. The proposed joint venture will establish a joint board of directors and management team to jointly oversee strategies. The proposed joint venture will also be responsible for handling all necessary regulatory filing procedures with Indonesian authorities and strictly adhering to local health and content regulations. There are currently multiple plans to expand the business into Indonesia and neighboring Southeast Asian markets when opportunities arise. The board believes that establishing the proposed joint venture with Genetron Health will enable the group to leverage Genetron Health's leading expertise in precision oncology, proprietary NGS technology, patented sample preparation (including One-Step Seq library preparation technology, Mutation Capsule technology), liquid biopsy, and its globally recognized clinical laboratory and regulatory infrastructure By combining Genetron Health's innovative product portfolio and R&D with the Group's existing distribution and manufacturing experience, the proposed joint venture aims to accelerate the launch and localization of high-impact cancer screening, diagnosis, and monitoring solutions in Indonesia and Southeast Asia. The establishment of the proposed joint venture will expedite the Group's development in the rapidly evolving diagnostics market, diversify revenue sources, and enhance the competitive advantage in delivering healthcare services. By entering high-potential markets through collaboration (rather than independently), the Group can reduce regulatory and operational risks, benefit from regional and international networks, and seize opportunities arising from the increasing demand for healthcare consumption and advanced diagnostic solutions. The Board notes that the growing demand for quality diagnostics in Indonesia, improved insurance coverage, and favorable demographic trends create a rich growth outlook for the local healthcare sector. Opportunities in solutions such as NIPT, cancer screening, and precision medicine remain substantial. This synergistic partnership is expected to strengthen the Group's position in the medical technology industry and create sustainable long-term value for shareholders