U.S. Stock New IPO Preview | An 8 Trillion Health and Wellness Market Welcomes a Disruptor: Xi'an Health's IPO in the U.S

On December 4th, Beijing time, Xi'an Health, a health technology company under the Shanyuhai Group, officially released its prospectus for its IPO on the US stock market, marking a further step in Xi'an Health's listing process on NASDAQ. According to the recent "2024 China Mainland and Hong Kong IPO Market Report and Outlook" released by Ernst & Young, the IPO activities of Chinese companies in the US are accelerating in 2024. This year, it is expected that 53 companies from mainland China and Hong Kong will go public on the US stock market, and the industries for US IPOs are showing a trend of diversification. The Xi'an Health that has released its prospectus is a comprehensive service platform centered on health management services. Its core business includes providing health solutions for the elderly population in China, covering comprehensive health management services, health products, accommodation services, and health vacation camp activities. According to public information, the proportion of the elderly population aged 65 and above in China is currently 14.2%, and this aging process is accelerating. By the end of 2021, China's total population was 1.4126 billion, of which the elderly population aged 65 and above reached 200.56 million, indicating a large elderly population. According to data from the National Bureau of Statistics of China, in 2020, the proportion of the population aged 60 and above accounted for 18.7% of the total population, and by 2050, this proportion is expected to increase to nearly one-third. Behind this demographic change is a considerable "demand gap," which also represents a huge growth space for the health and wellness market. According to the "China Health and Wellness Industry Development Report," it is predicted that by 2025, the scale of China's health and wellness market is expected to reach 8 trillion yuan. In this market context, Xi'an Health's one-stop health management service model has rapidly developed. Currently, China's health and wellness market mainly focuses on single products and services, but market demand is gradually shifting towards diversification and integration. The elderly population not only needs traditional medical and elderly care services but is also increasingly concerned about mental health, leisure and entertainment, social activities, and personalized health management. These demands are driving the health and wellness market towards more comprehensive and higher-quality services. Xi'an Health's market positioning is to become a leader in health management services for the elderly in China, targeting the elderly population aged 50 to 75. Xi'an Health aims to improve the quality of life for the elderly by providing comprehensive health management services while integrating traditional health services with modern technology to meet the growing demand for health management. Among them, the comprehensive health management model is the core of Xi'an Health's main business, which integrates various health services and products such as preventive health measures, routine health check-ups, mental health support, lifestyle management, health tourism, and various daily health care products. From a business composition perspective, Xi'an Health's main business is divided into five major segments: health management services, selected mall, customized health camps, hotel booking services, and health meal products. According to the data in the prospectus, as of June 30, 2023, Xi'an Health's five major segments achieved a total revenue of $7,553,043, and by June 30, 2024, this level reached $12,737,756, representing a growth of 68.64% during this period. In terms of profitability, the gross profit margin corresponding to June 30, 2023, was 43.86%, and by June 30, 2024, the gross profit margin level was 54.52%. While the revenue scale expanded in an orderly manner, the profitability level continued to improve, showing an overall business development trend of "growth in both quantity and quality." The rapid development trend is also in line with the major trends in the health and wellness market in recent years. Regarding future development, Xi'an Health stated that it will continue to invest in technological innovation, optimize supply chain management, improve service quality, expand service varieties, and strengthen the training and development of health management teams to ensure the provision of industry-leading services. In addition, digital transformation is key to Xi'an Health's future development, and it will utilize the latest information technologies, such as artificial intelligence, big data, and cloud computing, to optimize customer health information management and enhance the personalization and efficiency of services. With the diversification and integration of market demand, as well as support from policies and technology, Xi'an Health is expected to play an important role in this rapidly developing market, providing high-quality health and wellness services to an increasing number of middle-aged and elderly people. In the future, there is also hope to expand the customer base from the current middle-aged and elderly population to a broader group, including the general middle-aged and elderly population and parent-child families