topearntoplaycryptogames| The high-end clinic invested by Tencent is going public

Annual income 6Topearntoplaycryptogames90 million medium-and high-end medical service institutions.

Wen-through IPO

Author Han Wenjing

Under the upsurge of listing of private medical institutions, another institution submitted a prospectus.

On May 16th, Zhuozheng Medical Holdings Limited (hereinafter referred to as "Zhuozheng Medical") submitted a form to apply for the motherboard IPO on the Hong Kong Stock Exchange, with Haitong International and Puyin International as co-sponsors.

Since the beginning of this year, non-public medical enterprises, including the United States and China Jiahe and Shulan Medical, have set off a wave of IPO "upsurge" in Hong Kong. What are the highlights of Zhuozheng Medical, which is positioned as "China's leading private mid-and high-end integrated medical service institutions"?

At the beginning of his business, Wang Zhiyuan, the founder of Zhuozheng Medical, planned to build Zhuozheng Medical into a medical institution that provides general practice services to the community.TopearntoplaycryptogamesHe found that the trust of community residents in community medical institutions is still very limited.

As a result, Wang Zhiyuan changed direction, and in 2012, he began to lay out mid-and high-end multi-specialist chain clinics and founded Zhuozheng Medical in Shenzhen. Zhuozheng Medical has positioned itself as "the leading private mid-to-high-end integrated medical service organization in China". It is committed to providing patients with quality medical services covering paediatrics, dentistry, ophthalmology, dermatology, otorhinolaryngology and surgery, gynaecology and internal medicine.

In 2012, in addition to Zhuo Zheng's birth, the State Council issued an important document-- the Circular on issuing the Plan and implementation Plan for deepening the Reform of the Medical and Health system during the 12th five-year Plan period. It is mentioned that "greater efforts still need to be made to promote social forces to run medical services."

Under all kinds of advantages, Zhuozheng Medical has achieved rapid development.

As of the latest practicable date, Zhuo Zheng Medical owns and operates 21 medical services in China, including 19 clinics and two hospitals, and has three general practice clinics in Singapore.

During the same period, the company had 297 full-time doctors who had an average of about 14 years of practice experience after obtaining the qualification, more than 85 per cent of whom had practiced in Grade 3A Hospital before joining.

In terms of finance, the income of Zhuozheng Medical from 2021 to 2023 is about 4% respectively.Topearntoplaycryptogames.17 billion yuan, 473 million yuan, 690 million yuanTopearntoplaycryptogamesIn the same period, the losses were about 251 million yuan, 222 million yuan and 353 million yuan respectively.

The vast majority of this income comes from medical services, including our physical medical services, online medical services, membership programs and out-of-hospital medical services, mainly through medical service institutions in China. Medical services accounted for 99.8%, 98.6% and 98.5% of total revenue in 2021, 2022 and 2023, respectively.

For a long time, the strategic focus of Zhuozheng Medical is to serve the high-end medical service market, and the target group is the public with strong purchasing power and preference for more humanized and personalized care. For this reason, Zhuozheng Medical has an outstanding performance in terms of customer unit price.

From 2021 to 2023, the average cost per visit of Zhuozheng Medical entity medical service is 1033 yuan, 1014 yuan and 1048 yuan respectively.

According to the prospectus, Zhuozheng Medical ranked second and third among all private mid-and high-end integrated medical service groups in China in terms of paid patient visits and income in 2023.

As a founder, Wang Zhiyuan has worked in the investment banking departments of Citigroup Global Finance and JPMorgan for eight years, and has served as an analyst, manager and vice president. He has participated in nearly 20 capital market financing and cross-border mergers and acquisitions. Has a wealth of investment experience.

It is not difficult to understand that Zhuozheng Medical has introduced various major capital after its establishment. China International Capital Corporation, Tiantu Investment, Matrix Partners China, Waterwood Fund, Tencent and many other institutions have entered the market one after another, among which Matrix Partners cast three rounds in 2014, 2015 and 2017.

In September 2021, Zhuozheng Medical announced that it had completed the $60 million E round of strategic financing, led by Tencent, and launched the construction plan of small and medium-sized hospitals plus 10 large clinics in the next five years.

This is also the last round of financing before IPO, which valued Zhuozheng Medical at about $510 million.

Before IPO, Wang Zhiyuan, as the final single largest shareholder, exercised a total of 26.48% of the voting rights through the Cheuk Sing Ho agreement, Distinct Trust I's trust deed and concerted action agreement. Tencent held 19.39% of Zhuozheng Medical through the imagery structure, making it the largest institutional investor.

According to Frost Sullivan, the total revenue of China's middle and high-end medical services market increased from 305.5 billion yuan in 2019 to 556.7 billion yuan in 2023, with a compound annual growth rate of 16.2 percent, and is expected to reach 1.0206 trillion yuan in 2028.

Among them, the total income of China's private middle-and high-end medical service institutions increased from 178.2 billion yuan in 2019 to 361.5 billion yuan in 2023, and is expected to further increase to 722.1 billion yuan in 2028.

The growth of market potential is having a positive impact on Zhuozheng Medical. If we successfully land in the capital market, I believe Zhuozheng Medical will bring positive feedback to the market.