Shulan Medical broke into the IPO again: it is both a mom-and-pop shop and a father-to-son
Beijing Business Daily 2024-04-08
Morning Mist / Repost
Various self-media rumors about Li Lanjuan, Zheng Shusen and his wife, academicians and Shulan Medical continued. This article reproduced here comes from the streaming media "Beijing Business Daily" (the largest comprehensive economic daily newspaper under the Beijing Daily Group). The article seems to report the ins and outs of Shulan Medical from the front. But whether you look at the title "Shulan Medical Breaks into IPO Again: It Is Both a Mom-and-Pop Store and a Father's Son", or the content that seems relatively objective, does it leave a positive or negative impression on readers? Readers are invited to experience for themselves.
Beijing Business Daily reporter Yao Qian
One is an authoritative expert in liver transplantation with superb medical skills, and the other is a leader in the field of infectious diseases. As a typical example of academicians running medical institutions, a few days ago, Shulan Medical once again submitted a prospectus to the Hong Kong Stock Exchange. However, at present, neither of them works in Shulan Medical, nor does they hold relevant equity, but their son Zheng Jie serves as the chairman and manager of the company, and indirectly holds the equity of Shulan Medical. According to the prospectus, the post-investment valuation of Shulan Medical after the D round of financing is 8 billion yuan.
Academician founded
Following the first submission of the listing application to the Hong Kong stock market in August last year, Shulan Medical recently submitted a prospectus to the Hong Kong Stock Exchange again.
As of December 31, 2023, Shulan Medical has owned and operated 3 socially-run comprehensive medical institutions, and has provided hospital management services to 17 cooperative hospitals in China.
As a typical case of academicians running medicine, the development of Shulan Medical is inseparable from the influence of the two founders. In 2013, Zheng Shusen and Li Lanjuan founded Shulan Medical in Hangzhou, Zhejiang, and the company's name was also taken from their names. According to an article published by Zhejiang University, in October 1991, Zheng Shusen participated in the first orthotopic liver transplant in Hong Kong as his first assistant and was successful. The operation caused a sensation at the time and was listed as one of the top 10 news stories in Hong Kong that year. As a well-known infectious disease (infectious disease) expert, Li Lanjuan is a pioneer of Chinese artificial liver and a leader of the national key discipline of infectious diseases.
With the blessing of the halo of two academicians, Shulan Medical received an angel round of financing of 50 million yuan only three years after its establishment. As of the listing application, Shulan Medical has completed 5 rounds of financing, including Sequoia China, Qiming Venture Partners, China Life Health Fund, GIC (Government of Singapore Investment Corporation), etc.
Health care services are the core business of Shulan Medical, contributing more than 70% of the company's revenue. Its core business is mainly carried out through Shulan (Hangzhou) Hospital, Shulan (Anji) Hospital and Shulan (Quzhou) Hospital, of which Shulan (Hangzhou) Hospital is the flagship hospital of Shulan Medical, contributing nearly 80% of the revenue to this business segment. At the same time, Shulan (Hangzhou) Hospital is also the only social medical institution in China that can carry out transplantation of liver, kidney, heart and lung at the same time.
"Academician Li Lanjuan and Academician Zheng Shusen have brought academic aura and development assistance to the development of Shulan Medical. Deng Yong, a professor of health law at Beijing University of Chinese Medicine, said that Shulan Medical was founded by two academicians with rich medical backgrounds and experience, Li Lanjuan and Zheng Shusen. These two academicians have outstanding achievements in their respective fields, and their professional ability and prestige have undoubtedly provided a solid foundation for the development of Shulan Medical.
The son inherits the father's business
After the establishment of Shulan Medical, Li Lanjuan served as the chairman of the company for a long time, and Zheng Shusen served as a director. Until December 2020, Li Lanjuan stepped down as chairman and withdrew from the board of directors. Cheng Shu Sen, who has been a non-executive Director for six years, resigned as a director in July 2023.
At present, the chairman, executive director and general manager of Shulan Medical are Zheng Jie, the son of Li Lanjuan. According to the prospectus, Shanghai Shulan Investment Co., Ltd. (hereinafter referred to as "Shulan Investment") is the largest shareholder of Shulan Medical, holding 46.91% of the shares of Shulan Medical. Zheng Jie and Zheng Jun brothers each own 60% and 40% of the shares of Shulan Investment. According to the post-investment valuation of 8 billion yuan after Shulan Medical's D round of financing, after Shulan Medical is listed, the net worth of Li Lanjuan's family may reach 4 billion yuan.
In addition, Shulan Medical has also made a layout in the field of surgical robots and stem cells. It is understood that in addition to serving as the chairman, executive director and general manager of Shulan Medical, Zheng Jie is also the vice chairman of Hangzhou Shuchuang Robot. Hangzhou Shuchuang Robot is invested and incubated by Shulan Junjie Capital, a subsidiary of Shulan Medical, and is a Sino-foreign joint venture company with advanced technology foundation and independent research and development of high-valence surgical robots. Zheng Jun serves as the chairman of Biotron Precision Medicine. Biotron Precision Medicine is committed to the research and development of stem cell drugs and the development of new immune cell technologies.
Expansion is also one of Shulan Medical's intentions for this listing. According to the prospectus, part of the funds raised this time will be used for the construction and establishment of the Liangzhu Campus, which is expected to build a technology-driven medical institution that provides radiotherapy, biological therapy, minimally invasive surgery and precision medicine to treat difficult and critical diseases. Part of the proceeds will be used to purchase medical equipment for existing hospitals, as well as upgrade infrastructure, enhance R&D capabilities, digitalize daily operations, and recruit and retain medical professionals.
The prospectus also disclosed that Shulan Medical may be listed on the A-share market at an appropriate time. However, as of the Latest Practicable Date, Shulan Medical has not yet determined the size or listing location of the proposed A-Shares, nor has it submitted any application for approval of the listing of A-Shares to any recognized stock exchange in the PRC, and there can be no assurance that it will issue A-Shares in the future.
Shulan Medical is still in a loss-making state. From 2021 to 2023, Shulan Medical achieved revenue of 1.548 billion yuan, 1.778 billion yuan and 1.884 billion yuan respectively, and the annual losses in the same period were 82 million yuan, 111 million yuan and 17 million yuan respectively. In response to business development and other issues, a reporter from Beijing Business Daily contacted Shulan Medical, but did not receive any reply as of press time.
Screenshot of the 6th edition of Beijing Business Daily on April 8, 2024
Source: 2024-04-08 Beijing Business Daily
https://epaper.bbtnews.com.cn/epaper/index.html#20240408#5#2532
【Statement】This article is forwarded and shared, and the source has been indicated. It does not mean that this platform agrees with or opposes the views of the original author, and the responsibility and copyright belong to the original author. This article is reproduced for the purpose of conveying more information, if there is any infringement, please contact to delete.