Evergrande Real Estate Group, controlled by mainland billionaire Hui Ka-yan, plans to branch out into the medical beauty industry by establishing hospitals in Hainan. The move follows its exit, reported last week by Bloomberg, from a 90 billion yuan (HK$112 billion) plan to invest in the solar power industry. The Guangzhou-based developer is diversifying into various sectors including bottled water and dairy products due to slowing growth in the mainland real estate market and narrowing profit margins. However, investors remain suspicious. New Media Group, 75 per cent owned by Evergrande, said in a filing with the Hong Kong stock exchange on Sunday night it had entered into a strategic framework agreement to set up medical beauty and anti-ageing centres in Boao, Hainan, together with South Korea’s Wonjin Beauty Medical Group. The company said it believed Hainan, an international tourism destination with preferential policies, provided the most favourable conditions for international medical institutions to enter the mainland. It will also employ information technology to provide one-stop beauty care, plastic surgery, anti-ageing and health tourism services to high-end domestic and overseas customers. No further details were provided. Evergrande bought New Media last month for HK$950 million and plans to rename it Evergrande Health Industry Group. The developer is scheduled to announce its earnings for 2014 later on Monday. New Media shares traded up 0.4 per cent to HK$6.80 at 9.47am in Hong Kong, and Evergrande shares rose 0.3 per cent to HK$3.71.