Well-known top three hospitals hit the Hong Kong stock market listing!

Another well-known medical group is going to hit the IPO in Hong Kong stocks!

The author | Xiao Xiang

Source| Medical Community (ID: vistamed)

Another well-known medical group is going to hit the IPO in Hong Kong stocks! Recently, the Hong Kong Stock Exchange disclosed the application materials of Qifu Medical Group Co., Ltd. (hereinafter referred to as "Qifu Medical"), which belongs to Guangdong Qifu Hospital, to be listed in Hong Kong. In other words, Qifu Medical Group is ready to list on the main board of the Hong Kong Stock Exchange.

It is understood that Qifu Medical is mainly engaged in the operation of Guangdong Qifu Hospital and a number of supporting health facilities in Guangdong Province, including a confinement center, a nursing service center, an oral outpatient department and five retail pharmacies. Qifu Medical operates its hospital business through Guangdong Qifu Hospital, which is a for-profit private integrated traditional Chinese and Western medicine hospital (i.e. traditional Chinese and Western medicine hospital) in Panyu, Guangzhou.

According to the official website of the hospital, Guangdong Qifu Hospital / Qifu Hospital Affiliated to Jinan University is the first hospital in China to pass the international JCI certification, a national large-scale comprehensive tertiary hospital, and the vice president unit of Guangdong Provincial Hospital Association. The hospital has a construction area of 300,000 square meters and can open 3,000 beds.

According to the prospectus, in the past three years, the number of registered beds in Qifu Medical has remained at 2100. In 2019, 2020 and 2021, the revenue of Qifu Medical was 1.083 billion yuan, 865 million yuan and 1.206 billion yuan, the gross profit was 252 million yuan, 193 million yuan and 382 million yuan, and the net profit was 76.086 million yuan, 52.606 million yuan and 131 million yuan, respectively.

Regarding the change in revenue for the three financial years, Qifu Medical said that it was mainly due to, among other things, the covid-19 epidemic that reduced the number of patient visits and the number of hospital beds in 2020, while the subsequent increase in revenue in FY21 was mainly due to the gradual recovery of business from the COVID-19 epidemic.

Not long ago, the official micro-news of Qifu Hospital said that the hospital introduced two well-known experts from Guangdong to join Qifu Hospital, namely Professor Zhou Yingling, an expert in cardiovascular medicine of Guangdong Provincial People's Hospital and Guangdong Institute of Cardiovascular Diseases (formerly president of Zhuhai Hospital of Guangdong Provincial People's Hospital), who joined the hospital as the executive president of the hospital; Professor Jian Zhixiang, former director of major surgery, director of general surgery, and director of hepatobiliary surgery of Guangdong Provincial People's Hospital, and joined the hospital as vice president of the hospital and director of the major surgical center.

A number of medical groups went public in Hong Kong

"Listing is a complex and systematic project, at present, there are more than 40 medical service companies listed in Hong Kong stocks and A shares, mostly Hong Kong stocks, there are more than 30, and A shares are more than 10." Liu Saihui, executive director of the investment banking department of Haitong Securities, introduced to the "Medical Community" that from the perspective of the review cycle process, the review cycle of A shares is longer than that of Hong Kong stocks. It takes about 18 months for the main board to be declared and finally listed, and it also takes about 1 year for the science and technology innovation board and the ChiNext board. The listing process of Hong Kong stocks is generally 6-9 months.

According to the observation of "Medical Circles", in recent years, a number of medical groups in the mainland have been successfully listed on the Hong Kong stock market:

On March 22, 2022, Dental Healthcare Service Giant Rare Group was listed in Hong Kong;

On July 7, 2021, Ophthalmology Medical Services Group Chaoju Ophthalmology was officially listed on the Hong Kong Stock Exchange;

On July 13, 2020, Hongli Medical Management Group Co., Ltd., a comprehensive medical service group, was listed on the Hong Kong Stock Exchange;

On June 29, 2020, Oncology Medical Group Hygia Medical Holdings Limited was listed on the main board of The Stock Exchange of Hong Kong Limited;

In November 2016, Kanghua Medical was listed on the Hong Kong stock market;

In November 2015, Corning Hospital, a private psychiatric hospital, was listed on the Stock Exchange of Hong Kong.

……

In addition to the medical groups that have been listed, some financial media have revealed that there are currently several medical groups planning to go public in Hong Kong.

At the end of 2021, the financial media Gelonghui revealed that Wuhan Asia Heart Hospital, a large private medical institution in China, intends to list in Hong Kong, and the IPO may be carried out as early as 2022, or raise hundreds of millions of dollars.

According to a person familiar with the matter quoted by Reuters' IFR, Lu Daopei Medical Group, a well-known medical group in China, also plans to go public in Hong Kong, raising at least US$500 million (about HK$3.9 billion).

Liu Saihui introduced that compared with the A-share listing, the listing conditions of Hong Kong stocks are divided into three situations, one of which can be met: the first is to be listed on profit, the operation time should reach 3 years, the profit in the most recent year should be greater than or equal to 20 million Hong Kong dollars, the cumulative profit in the first two years is greater than or equal to 30 million Hong Kong dollars, and the minimum market value of the issuance shall not be less than 500 million, etc.; the second is based on the combination of market value/income/cash flow as the listing condition; the third is the market value/income as the listing condition.

Hong Haomiao, founding partner of Medical Sen Capital, believes that since 2013, the Hong Kong stock market as a place for the listing of medical service enterprises has become more and more mature, and the Main Board of Hong Kong has gradually formed a plate effect of medical service enterprises.

Some insiders also said that the brand medical chain impact listing for entrepreneurial medical service enterprises constitutes a major benefit of asset securitization, there will be more medical service companies in the future to have the opportunity to impact the listing, the continuous liberalization of the listing channel will help medical service companies reduce financing costs, become bigger and stronger, and attract more funds to enter the medical market, to help the healthy and rapid development of high-quality medical service enterprises. (This article is published by "Seeing the Medical Community", reprinted with permission, and the author and source are indicated at the beginning of the article.) ）

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