On May 16, Zhuozheng Medical Holdings Limited (hereinafter referred to as "Zhuozheng Medical") submitted a prospectus to be listed on the main board of the Hong Kong Stock Exchange, with Haitong International and SPDB International as its joint sponsors.
According to Beduo Finance, the main business entity of Zhuozheng Medical in China is Shenzhen Zhuozheng Medical Investment Consulting Co., Ltd., which was established in 2012. Tianyancha App shows that the company's registered capital is 72,857,143 yuan, the legal representative is Wang Zhiyuan, and the shareholders are Shenzhen Qianhai Zhuozheng Medical Investment Consulting Co., Ltd. and Shenzhen Zhuozheng Xinhe Investment Co., Ltd.
According to the prospectus, Zhuozheng Medical is a private mid-to-high-end comprehensive medical service institution. Zhuozheng Medical said in the prospectus that the company has established a nationwide network, including Shenzhen, Guangzhou, Beijing, Chengdu, Suzhou, Changsha, Shanghai, Chongqing, Hangzhou and Wuhan.
As of the Latest Practicable Date, Zhuozheng Medical owned and operated 21 medical service institutions, including 19 clinics and two hospitals, throughout the PRC. In addition, Acc Medical has opened three general practice clinics in Singapore. According to reports, the company intends to continue to expand the network of medical service institutions through organic growth and strategic acquisitions, and penetrate more new first-tier cities.
According to Frost & Sullivan, in terms of the number of cities covered in China, in 2023, Zhuozheng Medical ranked first among all private mid-to-high-end comprehensive medical service institution groups. In terms of the number of visits and revenue of paying patients in 2023, Zhuozheng Medical ranked second and third respectively among all private mid-to-high-end comprehensive medical service institution groups in China.
Among them, private mid-to-high-end comprehensive medical service institutions refer to private mid-to-high-end medical service institutions that can cover at least five specialties and the income from a single specialty does not exceed 50% of the total revenue. Currently, the main players in this market are specialized medical services and general medical services providers with expertise in a certain specialty area.
According to Frost & Sullivan, the total revenue of private mid-to-high-end integrated medical service providers in China increased from RMB 17.8 billion in 2019 to RMB 40.2 billion in 2023, with a compound annual growth rate of 22.6%, and is expected to reach RMB 85.1 billion in 2028, with a CAGR of 16.2% from 2023 to 2028.
As of the end of 2023, Excellence Medical has 297 full-time physicians, as well as 559 other medical professionals. According to the prospectus, these doctors have an average of about 14 years of practice experience after obtaining their qualifications, and more than 85% of them have practiced in tertiary hospitals before joining.
In 2021, 2022 and 2023, Zhuozheng Medical's revenue will be approximately RMB417 million, RMB473 million and RMB690 million respectively, gross profit will be approximately RMB49.552 million, RMB43.980 million and RMB134 million respectively, and net loss will be approximately RMB251 million, RMB222 million and RMB353 million respectively.
Beduo Finance understands that Zhuozheng Medical's revenue mainly comes from medical services, especially physical medical services (i.e., offline medical services). During the Reporting Period, the Company's physical medical service revenue was approximately RMB372 million, RMB393 million and RMB592 million respectively, accounting for 89.1%, 83.0% and 85.8% of the total revenue, respectively.
According to the prospectus, Zhuozheng Medical provides medical services, including general consultation, diagnostic and preventive health services, treatment and drug sales through medical service institutions and online medical service platform "Zhuozheng Medical". In addition, the company also derives part of its revenue from out-of-hospital medical services, as well as the sale of health products in an online mall called "Zhuozheng Strict Selection".
In 2021, 2022 and 2023, the total number of patients served by Acc Medical's medical service provider/online medical service platform in China was 149493, 162393 and 201335, respectively, and the total number of paying patient visits was 470924, 529829 and 733397, respectively.
In addition, from January to March 2024, Zhuozheng Medical acquired a total of 51.04% equity interest in Wuhan Shenlong Tianxia, which owns Wuhan Beidouxing Children's Hospital and two Wuhan clinics. According to reports, Wuhan Shenlong Tianxia has become a non-wholly-owned subsidiary of the company since March 28, 2024.
It is worth mentioning that Zhuozheng Medical also disclosed the "repurchase rate" - the return rate of patients. For the years ended December 31, 2021, 2022 and 2023, the Company's patient return rates were 71.1%, 75.7% and 78.2%, respectively. This means that more than 70% of patients will choose to visit Champion Medical again.
Prior to this listing, Cheuk Sing Ho held 18.92% of the shares. Among them, the shareholders of Cheuk Sing Ho include Wang Zhiyuan, Shi Yi, Zhang Xiangdong, Zhu Yan, Zhou Fang, Zhang Dongsheng, Zhang Jianxin, etc. According to reports, Wang Zhiyuan has the sole right and power to make decisions and vote on behalf of Cheuk Sing Ho.
In addition, Cao Shaoshan holds 1.68% of the shares, Zhang Xiangdong holds 1.45% of the shares through Nineteen Seventy-Seven, and Distinct Partners I holds 4.43% of the shares. Among them, Wang Zhiyuan is the final single largest shareholder of Zhuozheng Medical, and can exercise a total of 26.48% of the voting rights mentioned above.
In addition, Tencent and CICC are also shareholders of Zhuozheng Medical.