According to the Hong Kong Stock Exchange's recent disclosure, Beijing Tong Ren Tang Medical Care Investment Co., Ltd. submitted a listing application to the main board of the Hong Kong Stock Exchange, with CICC as the sole sponsor.
Tong Ren Tang Medical Care provides modern and customized TCM medical services. According to the ranking of the total number of outpatient visits and the total income of outpatient medical services in 2022, Tong Ren Tang Medical Care is the largest traditional Chinese medicine hospital group in the medical service industry of non-public traditional Chinese medicine hospitals in China.
Synthesis | Prospectus Edit | Arti
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With a history of more than 350 years, Tong Ren Tang Group's medical care company officially hit the Hong Kong stock IPO, after Tong Ren Tang, Tong Ren Tang Technology, Tong Ren Tang Chinese Medicine Listing, Tong Ren Tang Medical Care will become the fourth listed company under Tong Ren Tang Group if it is successfully listed.
The history of Tong Ren Tang Medical Care can be traced back to 2015, when the company established Beijing Tong Ren Tang Investment and Development Co., Ltd. in Beijing, which is wholly owned by Tong Ren Tang as Tong Ren Tang's investment platform.
In September 2019, the registered capital of the company was increased, all of which were subscribed by Tong Ren Tang, and the company was renamed Beijing Tong Ren Tang Medical Care Industry Investment Group Co., Ltd.
Since then, Tong Ren Tang Medical Care has continued to expand its business territory, and in 2020, Tong Ren Tang Internet Hospital was established to integrate online medical resources. In 2022, it acquired a controlling stake in Sanxitang Health Center and Sanxitang Traditional Chinese Medicine Center as part of its strategy to explore business opportunities in the Yangtze River Delta.
In 2024, it will acquire a 70% stake in Shanghai Chengzhitang to strengthen its business layout in the Yangtze River Delta. At the same time, Tong Ren Tang Medical Care also provides medical institution management services.
According to the prospectus, Tong Ren Tang Medical Care is a leading TCM medical group, which is composed of self-owned and managed medical institutions according to three levels: chain hospitals, grassroots chain medical institutions and Internet hospitals. Combining medical care and nursing, we provide modern and customized TCM medical services, covering the whole scene with a standardized service process in one stop, using advantageous specialties and using a combination of TCM and non-drug treatment to provide customers with the most suitable solutions.
As of June 19, 2024, Tong Ren Tang Medical Care has established a hierarchical diagnosis and treatment service network, including 11 self-owned offline medical institutions, one Internet hospital, and nine offline managed medical institutions. Through the offline and online integrated service network, it reaches and serves customers all over the country.
Relying on the long-established Tong Ren Tang brand and supported by high-quality drugs, the company has extensively gathered and integrated online and offline medical resources, and according to the ranking of the total number of outpatient visits and outpatient medical services in 2022 as of June 19, 2024 of its own traditional Chinese medicine hospitals, Tong Ren Tang Medical Care is the largest traditional Chinese medicine hospital group in the medical service industry of non-public traditional Chinese medicine hospitals in China.
During the Track Record Period, the Company's revenue was mainly derived from: medical services; management services; Sell health products and other products to customers.
The medical services provided by Tong Ren Tang Medical Care are mainly based on traditional Chinese medicine, with comprehensive specialty coverage, providing customers with trustworthy medical services throughout the disease course in a one-stop manner, creating a convenient and comfortable service experience. The Company's medical service network continued to expand, with a total of 1.4 million, 1.5 million and 1.9 million visits to medical institutions in the Company's network in 2021, 2022 and 2023, respectively.
In terms of recent development, in addition to its own medical institutions, Tong Ren Tang Medical Care is committed to exporting the company's management team and medical resources through the management of medical institutions, developing high-quality medical services, benefiting more customers across the country, and expanding its business territory and enhancing its influence across the country. In January 2024, the company began providing management services to six medical institutions in Beijing, in addition, in March, it entered into a partnership with Qianxinan Hospital in Guizhou Province to provide management services.
Physicians are the key support for the delivery of medical services. According to the prospectus, as of the latest practicable date, the number of doctors practicing in the Tongrentang medical care network reached 2,028, including 20 doctors with national honorary titles. The company has formed a number of advantageous specialties such as TCM cardiology, TCM encephalopathy, TCM endocrinology, TCM gynecology, TCM pediatrics, TCM oncology and non-drug treatment.
In addition, in January 2024, the Company obtained the exclusive right to sell the Angong Niuhuang Wan series of products (which varies by material) (a prescription proprietary Chinese medicine widely used in the field of cerebrovascular diseases and known for its scarcity and therapeutic efficacy) to retail terminals (excluding pharmacies and medical institutions under Tong Ren Tang Group) in Zhejiang Province to retail terminals in Zhejiang Province (excluding pharmacies and medical institutions under Tong Ren Tang Group).
In terms of finance, Tong Ren Tang Medical Care will achieve revenue of about 470 million yuan, 697 million yuan and 895 million yuan in 2021, 2022 and 2023 respectively, and the profit for the year will be -6.793 million, -14.66 million yuan and 44.59 million yuan respectively.
In the TCM medical service track where Tong Ren Tang Medical Care is located, industry participants are relatively scattered, including TCM hospitals, TCM outpatient departments, TCM clinics, and community health institutions that provide TCM services.
According to Frost & Sullivan data, the market size of China's TCM medical service industry increased from RMB 583.6 billion in 2018 to RMB 800 billion in 2022, with a compound annual growth rate of 8.2%, accounting for 13.4% of the total market share of China's medical service industry in 2022, and is expected to reach RMB 2,123.9 billion in 2032, with a CAGR of 10.3% from 2022 to 2032. It will account for 19.3% of the total market share of China's medical service industry in 2032.
The proceeds from the Hong Kong IPO will be mainly used to expand the service network of medical institutions and enhance the capacity of medical services, including the purchase of equipment, the acquisition of new branches, the recruitment of medical professionals, and the upgrading of digital information systems.