After 9 rounds of financing, Health 160's IPO in Hong Kong completed the filing of overseas listing
HC3i is a new medical institution
Guide:
The company intends to issue no more than 61,452,500 overseas listed ordinary shares and list them on the Hong Kong Stock Exchange.
On September 23, 2024, the China Securities Regulatory Commission (CSRC) confirmed the listing filing of Health 160 International Limited (hereinafter referred to as "Health 160") IPO in Hong Kong.
Founded in 2005, Health 160 is a leading digital healthcare platform in China, connecting healthcare institutions, healthcare professionals and individual users to provide a wide range of healthcare services, including serious medical and consumer medical services.
According to Frost & Sullivan, calculated by the number of registered through the platform in 2022; Calculation of the number of partner hospitals as of December 31, 2022; Calculation of the number of cooperative tertiary hospitals as of December 31, 2022; As of December 31, 2022, Health 160 is the largest digital medical and health service platform in China's digital medical and health comprehensive service industry in 2022.
Health 160's medical and health service ecosystem Source: Health 160 prospectus (the same below)
9 rounds of funding have been bet on
On December 15, 2023, Health160 submitted a listing application to the Hong Kong Stock Exchange, with Shenwan Hongyuan Hong Kong and Qingke Capital as its joint sponsors. According to incomplete statistics, Health 160 has received a total of 9 rounds of financing, and institutions such as Qifu Capital, Apurui Investment, Yuanzhi Investment, and Yingxin Guofu have bet.
As early as 2015, Health 160 completed the shareholding reform and was listed on the New Third Board, and the listing was terminated in June 2018. Health 160, formerly known as Shenzhen Ningyuan, was officially renamed "Health 160" in June 2017, during the listing on the New Third Board. Regarding the delisting from the New Third Board, the company has said that it is preparing for the launch of Hong Kong stocks or GEM listing.
As of June 30, 2023, Health160's platform has connected to more than 30,000 healthcare institutions, including more than 14,000 hospitals (including 3,295 tertiary hospitals) and more than 16,000 primary healthcare institutions. About 6,600 private institutions in the Health 160 partner healthcare institutions mainly provide consumer medical services on their platforms, such as dental, ophthalmology and physical examination services; Health160 has also partnered with more than 720,000 healthcare professionals.
Health160's platform has a huge user base. As of the same date, there were 44.9 million registered individual users, with an average of 3 million monthly active users.
Through its own platform, Health 160 has expanded its service scope to more than 260 cities across the country, and has established 10 regional operation centers in key areas such as Shenzhen, Beijing, Shanghai and Guangzhou.
Selling drugs supports 70% of revenue
In terms of finance, in the first half of 2020~2023, the company achieved revenue of 279 million yuan, 423 million yuan, 526 million yuan and 269 million yuan respectively, with losses of 29.876 million yuan, 152 million yuan, 120 million yuan and 24.776 million yuan respectively, with a cumulative loss of more than 300 million yuan in three and a half years.
Health 160 key financial data
The expense of inventory costs is the core of the health 160 loss. According to the data, from 2020 to 2022, the inventory cost will be 140 million yuan, 250 million yuan, and 365 million yuan respectively, accounting for 79.5%, 86.3%, and 89.5% of the sales and service costs in the same period.
Regarding the expansion of losses, Health 160 said that due to the expansion of business scale, the company's costs and expenses continued to expand, resulting in the expansion of the company's operating losses. The company expects to invest heavily in the future to grow its business, including expanding its customer base, developing new solutions and services, strengthening its supply chain, and expanding its marketing activities, which may continue to be a loss.
It is worth noting that Health160's revenue mainly comes from providing digital medical and health solutions and selling medical and health products. Among them, the sales of medical and health products accounted for a larger proportion, and the company relied on "selling medicines" to support nearly seventy percent of its revenue.
According to the data, in 2020~2022, the company's sales of pharmaceutical and health products contributed revenue of 155 million yuan, 264 million yuan and 385 million yuan respectively, accounting for 55.56%, 62.17% and 73.33% of the total revenue; The revenue from providing digital medical and health solutions was 124 million yuan, 159 million yuan and 141 million yuan respectively, accounting for 44.44%, 37.59% and 26.81% of the total revenue.
However, the gross profit margin of the sale of pharmaceutical and health products is much lower than that of digital healthcare solutions. In 2020~the first half of 2023, the gross profit margins of pharmaceutical and health products sales were 7.9%, 4%, 4.1% and 2.1%, respectively, and the gross profit margins of digital medical and health solutions were 73.1%, 76.6%, 72.8% and 75.4%, respectively.
Due to the continuous loss of performance, the company's asset-liability ratio is high. In 2020~the first half of 2023, the company's asset-liability ratios were 118.47%, 230.14%, 319.33% and 120.95% respectively.
Epilogue:
From the perspective of the development experience of Teladoc, a global Internet medical head company, insurance, enterprises and members are the cornerstone of the Internet medical profit model, but the doctors' practice system, medical system, and payment ability in China and the United States are very different.
Health 160 is exploring the possibility of a new business on the Internet medical platform by accumulating huge traffic entrances through registration, grasping the policy dividend of strong supply of high-quality medical resources under hierarchical diagnosis and treatment, grasping the wave of hospital informatization transformation and upgrading, following the demand for online consultation and family health consumption, meeting the needs of small and medium-sized medical brands for marketing customer acquisition and doctor IP building, and providing decision-making empowerment for the O2O flow of medical resources.
Source: Pharmaceutical Cube Invest, Shenzhen Business Daily