* Kaisa expanding footprint in healthcare
* Says deal will create sustainable returns
* Stock down 1.9 pct, lagging main index
* Developer was China’s first to default on offshore bonds (Adds executive comment, Kaisa context, share prices)
HONG KONG, Nov 29 (Reuters) - Kaisa Group Holdings Ltd on Wednesday said it planned to spend $322 million buying 19 percent of blood products firm Zhenxing Biopharmaceutical & Chemical Co Ltd, as the once-troubled Chinese property developer continues to diversify.
Kaisa earns over 90 percent of revenue from property but is active in a range of industries such as tourism and technology, and has businesses up and down the healthcare supply chain.
The group made headlines when it was unable to report 2014 earnings after authorities blocked the sale of some of its properties. That lead to it becoming the first Chinese property developer to default on offshore bonds.
With its debt restructured and sales block lifted, it recovered to post record contracted property sales last year, exceeding its last reported sales in 2013 by about 25 percent.
On Wednesday, Kaisa said unit Shenzhen Shipping Health Technology Co Ltd would buy an 18.57 percent stake in Zhenxing Biopharmaceutical from Zhenxing Group Co Ltd for 2.19 billion yuan ($331.87 million), funded through internal resources.
The audited consolidated net asset value of Zhenxing Biopharmaceutical, which produces human serum albumin and human immunoglobulin, was 546.9 million yuan at the end of 2016.
“The acquisition represents a good investment,” Chairman Kwok Ying Shing said in a statement. “Income from the sales of blood products ... will create sustainable returns for the company’s shareholders and expand the company’s presence in the healthcare industry, which in turn will facilitate industry diversification and enhance industry synergy.”
The group has said it expects to return to profit in 2017. Earlier this month, it recorded total contracted property sales of about 4.36 billion yuan for October, up 16.9 percent from the same month a year earlier.
Its share price was down 1.9 percent at the end of morning trade, compared with a 0.4 percent fall in the benchmark Hang Seng Index. Shares of Zhenxing Biopharmaceutical were up 2.8 percent. ($1 = 6.5990 Chinese yuan renminbi)
Reporting by Donny Kwok; Editing by Richard Pullin and Christopher Cushing