New Stock News | Zhuozheng Medical resubmits application to Hong Kong Stock Exchange, medical service network covers strong economic cities in China

According to the Hong Kong Stock Exchange's disclosure on March 18, ZHONGZHENG Medical Holdings Limited (ZHONGZHENG Medical) has submitted a listing application to the main board of the Hong Kong Stock Exchange, with Haitong International and Pudong Development Bank International as its joint sponsors. This is the company's second application for listing on the Hong Kong Stock Exchange, having previously submitted an application on May 16, 2024. According to the prospectus, ZHONGZHENG Medical was founded in 2012 and operates 20 medical service institutions across China, including 18 clinics and two hospitals, leveraging a centralized, standardized, and digital management system. The company has established a network covering some of China's most economically developed cities, including Shenzhen, Guangzhou, Beijing, Chengdu, Suzhou, Changsha, Shanghai, Chongqing, Hangzhou, and Wuhan. In addition, the company operates three general clinics in Singapore and plans to continue expanding its network of medical service institutions through organic growth and strategic acquisitions, penetrating more new first-tier cities. The company's revenue primarily comes from providing medical services through private medical service institutions and online medical service platforms, covering a range of specialties including pediatrics, dentistry, ophthalmology, dermatology, otolaryngology, surgery, gynecology, and internal medicine. The company offers a wide range of medical services, such as general consultations, diagnostic and preventive medical services, treatment, and pharmaceutical sales. According to Frost & Sullivan, based on 2023 revenue, the company is the third-largest private mid-to-high-end comprehensive medical service institution in China, with a market share of 1.7%. Additionally, according to Frost & Sullivan, the private mid-to-high-end comprehensive medical service market in China is highly fragmented, and based on the number of cities covered in China as of December 31, 2023, and the number of paid patient visits in 2023, the company ranks first and second among all private mid-to-high-end comprehensive medical service institution groups, respectively. The company has strategically focused on serving the mid-to-high-end medical service market, targeting affluent consumers who typically have strong purchasing power and prefer more personalized medical services. According to Frost & Sullivan, the total revenue of the private mid-to-high-end medical service market grew from RMB 178.2 billion in 2019 to RMB 361.5 billion in 2023, with a compound annual growth rate of 19.3%. It is expected to continue growing at a compound annual growth rate of 14.8% from 2023 to 2028, reaching RMB 722.1 billion by 2028. In terms of finances, ZHONGZHENG Medical's revenue for 2022, 2023, and 2024 is approximately RMB 473 million, RMB 690 million, and RMB 959 million, respectively; the annual profits are approximately RMB -222 million, RMB -353 million, and RMB 80.227 million, respectively.