Hong Kong Health Check and Laboratory acquired two medical service companies, Polyray Technology and Polylight Technology, for HK$34.25 million yesterday in what was seen as its first solid step to diversify into the health industry.

The acquisitions come at a time when the company is putting finishing touches to its first one-stop health check centre, Hong Kong Health Check and Laboratory Centre, in Kowloon.

Hong Kong Health Check CEO Cho Kwai-yee described the acquisitions as "strategic", saying that the deal would help "strengthen technological support to the company's first health check centre and put it in a better position in Hong Kong's medical diagnostic industry."

The CEO of the company, engaged mainly in manufacturing and sale of garments and securities trading, said: "Thanks to the existing client and revenue base of the two acquired companies, we should be able to maximize our market share in the medical diagnostic industry."

Polyray and Polylight principally provide medical diagnostic services, including magnetic resonance imaging (MRI), under the trade name "Opus Medical Diagnostic Centre", and last year their combined revenues and adjusted profits before tax were HK$40.42 million and HK$6.86 million, respectively.

As one of the largest medical diagnosis centres, Opus has broad patient and referral bases in Hong Kong.

About "85 per cent of the patients are referred by medical practitioners or insurance companies, the rest being walk-in patients", Cho said.

"Its referral network is also strong, comprising 605 doctors, 14 insurance companies, 15 medical or clinic groups, 53 other corporate clients and 11 traditional Chinese medicine practitioners."

With an investment of more than HK$100 million, Hong Kong Health Check expects the new health check centre to formally open in January 2007.

"We hope the new centre to break even in six months... and make profit in five years," company vice-chairman Bennet Fung said.

"We are considering opening 10 medical diagnostic centres in Hong Kong... by the end of this year through acquisitions," Fung said, without giving any details.

But Hong Kong Health Check is not the only company to diversify through acquisitions. Freeman, a Hong Kong-based company that deals mainly with securities, financing, property and investment, announced yesterday that it had acquired Cinergy, a company engaged in general and life insurance business and investment linked products, for HK$54 million. Freeman plans to diversify into life insurance business.

Shares of Hong Kong Health Check and Freeman both closed flat yesterday at HK$0.12 and HK$0.27, respectively.