Gushengtang, the first share of the "Chinese Medicine Hall", was listed with a market value of 6.68 billion

[Lieyun Network (WeChat: ilieyun) Beijing] reported on December 12

On 10 December, Gushengtang was listed on the main board of the Hong Kong Stock Exchange with a market value of HK$6.681 billion.

Gushengtang is the first listed TCM medical service chain institution in China, with 42 TCM medical centers in 11 cities across the country, with an annual outpatient volume of nearly 2 million.

According to the prospectus, Gushengtang was established in 2010. As a TCM medical and health service provider, we provide customers with comprehensive TCM medical and health services and products through offline medical institutions and online medical and health platforms to meet the diversified medical and health management needs of customers.

Since its inception, Gushengtang has been committed to obtaining offline TCM medical and health resources, and invited famous doctors such as old Chinese medicine practitioners who are close to retirement or have retired from the top three hospitals to visit. As of June 30, 2021, there are nearly 20,000 physicians practicing in Gushengtang Medical Service Network, many of whom are from Beijing, Shanghai, Guangzhou and other medical center cities across the country. In addition, Gushengtang has 4 masters of traditional Chinese medicine, nearly 8,000 chief physicians and deputy chief physicians, covering traditional Chinese medicine internal medicine, gynecology, hepatology, otolaryngology and other departments, and jointly developing clinical specialties such as oncology, dermatology and spleen and stomach with public tertiary hospitals.

According to the prospectus, Gushengtang plans to use the raised funds to expand online and offline business, strengthen research and development capabilities, including the research and development of in-hospital preparations and TCM solution packages, strengthen supply chain capabilities, including upgrading existing decoction centers and establishing new decoction centers according to business expansion, and establishing its own GMP plant in the medium to long term according to business needs.

In the past three years, although the revenue scale of Gushengtang has been growing, the prospectus shows that Gushengtang's revenue in 2018, 2019 and 2020 was 726 million yuan, 896 million yuan and 925 million yuan, respectively; the gross profit was 292 million yuan, 391 million yuan and 437 million yuan, respectively, but it has not yet achieved profitability.

From 2018 to 2020, Gushengtang lost RMB211 million, RMB162 million and RMB177 million. In the first half of 2021, Gushengtang recorded a loss of 300 million yuan.

The profit model is not yet clear, how will Gushengtang tell the capital story?