Cathay Medical Foundation's minimal stake in Cathay Financial Holding

The Cathay Medical Foundation's role within the broader Cathay Financial Holding group appears to be more focused on supporting its hospital operations rather than acting as a significant controlling shareholder. With a shareholding of just 0.185% in Cathay Financial Holding, its influence is considerably less pronounced compared to other major medical foundations like Chang Gung and Shin Kong Medical, which often hold substantial stakes in their respective group's key listed companies.

This limited stake suggests that Cathay Medical Foundation's primary function is to ensure a stable income stream for the Cathay Hospital. Financial reports for fiscal year 2025 reveal that the hospital's core medical operations incurred a loss of NT$679 million. However, this deficit was partially mitigated by NT$431 million in net income from non-medical activities, narrowing the overall pre-tax loss to NT$248 million.

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Cathay Medical Foundation's shareholding in Cathay Financial Holding is only 0.185%, making its holding role weaker, mainly contributing stable income to Cathay Hospital.

Even in fiscal year 2024, when the medical business was profitable, the NT$363 million generated from non-medical activities exceeded the NT$249 million profit from core medical operations, accounting for 59% of the total pre-tax profit for that year. This highlights the significant contribution of non-medical revenue streams to the hospital's financial health.

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In fiscal year 2025, the medical business loss reached NT$679 million, but fortunately, the net profit from non-medical activities that year was NT$431 million, which reduced the hospital's overall pre-tax loss to NT$248 million.

The foundation was established by Cathay Life Insurance, and its board includes prominent figures from the Cathay Financial Holding group, such as Chairman Tsai Hong-tu as chairman and his eldest son, Tsai Tsung-hsien, as vice chairman. Other family members and key executives from Cathay Financial Holding and Cathay Life Insurance also serve on the board and as supervisors.

In terms of stock assets, Cathay Medical Foundation held approximately NT$2.28 billion in fiscal year 2025, with about 90% invested in Cathay Financial Holding. Other investments include shares in unlisted biotech AI company Cloud-AI, Yong Feng Financial Holding, Teco Electric & Machinery, and Cathay Real Estate Construction. The original cost of these stocks was about NT$1.403 billion, with unrealized valuation gains of NT$877 million.

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Even in fiscal year 2024, when the medical business was profitable, its non-medical net profit of NT$363 million was higher than the business profit of NT$249 million, accounting for 59% of the total pre-tax profit that year.