On December 22, 2023, IVF Hospital Management Group Co., Ltd. IVF Hospital Management Group Co., Ltd. (“IVF”) from Shenzhen, Guangdong submitted a prospectus on the Hong Kong Stock Exchange to be listed in Hong Kong for an IPO.
Link to AVF's prospectus:
https://www1.hkexnews.hk/app/sehk/2023/106063/documents/sehk23122201412_c.pdf
Main business
IVF, founded in 2006, is a leading one-stop assisted reproductive technology (ART) and ancillary service provider. Through the company's four authorized hospitals, including Guangdong Zhanjiang Jiuhe Hospital, Tianjin Tianjin Aiwei Hospital, Guangdong Jieyang Ave Hospital, and Yunnan Kunming IVF Hospital, it focuses on providing ART and ancillary services for infertility patients, covering the whole process and post-stage services of diagnosis, pregnancy assistance and adjuvant treatment.
According to the Frost & Sullivan report, according to the IVF cycle count carried out in 2022, IVF ranked fourth among private assisted reproductive technology service providers in China. A total of 6,706 IVF cycles were performed, accounting for 0.9% of the total number of IVF cycles in China in the same year.
* IVF is the process of in vitro fertilization to develop into an embryo to achieve the purpose of conception. The IVF cycle is the egg retrieval cycle. It refers to the cycle of retrieving eggs contained in ovarian follicles. After that, the egg retrieval cycle generally progresses until the egg combines with sperm to produce an embryo
AVF's ART and ancillary services have covered patients in 15 provinces and municipalities in China, including Beijing, Tianjin, Hebei, Shandong, Inner Mongolia, Yunnan, Guizhou, Sichuan, Chongqing, Guangdong, Guangxi, Hunan, Jiangxi, Fujian, and Hainan. As of June 30, 2023, AVF has treated more than 90,000 patients, performed more than 57,000 IVF cycles, completed more than 67,000 embryo transfers (including fresh embryo transfer and frozen embryo transfer), and gave birth to more than 33,000 IVF babies.
According to Frost & Sullivan data, Avive is consolidating its leading market position by maintaining excellent success rates and live births. According to Frost & Sullivan, in 2021, the average success rate (that is, the total number of clinical pregnancies divided by the total number of embryo transfers) and live birth rates reached 58.2% and 46.5%, respectively, far exceeding the industry average of 51.5% and 41.3%.
As of June 30, 2023, AVF had a total of 622 full-time employees, including 329 medical professionals (52.9%), including 82 full-time physicians, 29 embryo laboratory workers, 65 medical technicians, 10 medical assistants, and 143 nurses.
AVF mainly provides patients with ART treatment and various ancillary medical services, including various service programs such as ART packages and ancillary services, and customized one-on-one butler service “first class” for high-end customers.
Shareholder structure
According to the prospectus, in the pre-listing shareholder structure, AVF
Mr. Ren Jizhong held 66.69% of the shares through Jiuhe BVI, 24.00% through LBRS Holdings, and 1.12% through Suda BVI (Restricted Share Unit Plan Shareholding Platform), for a total of 91.81%.
Shenzhen Venture Capital, a subsidiary of the Shenzhen State-owned Assets Administration Commission, holds 1.92% of the shares;
Nanshan Red Clay and Futian Red Clay, controlled by Shenzhen Venture Capital, hold 4.60% and 1.67% of the shares respectively.
Management
AVF's board of directors consists of 7 directors, including 3 executive directors, 1 non-executive director, and 3 independent non-executive directors.
Board of Directors (7 members)
Executives (5)
Executives include Mr. Ren Jizhong, Executive Director, Chairman, CEO and President; Ms. Huang Yaqin, Executive Director, Chief Financial Officer and Co-Company Secretary; Ms. Zhang Lianyue, Executive Director; Ms. Wang Xiaohui, Executive Vice President; and Mr. Fan Xiujun, Chief Scientist.
Company performance
According to the prospectus, in the past year of 2020, 2021, 2022 and the first half of 2023, AVF's revenue was 369 million, 420 million, 407 million and 230 million yuan, respectively, and the corresponding net profit was 459.57 million yuan, 94.562 million, 64.517 million and 33.883 million yuan, respectively.
Intermediary team
AVF's intermediary team for this IPO mainly includes CITIC Securities as its sole sponsor; KPMG as its auditor; Jingtian Gongcheng and Shengde as the company's Chinese lawyers and the company's Hong Kong and US lawyers respectively; Han Kun is a data compliance lawyer relating to China; Commerce and Smithfield are its Chinese lawyers; brokerage firm Hong Kong and US lawyers respectively; Dai Deliang is its property valuer; and Frost Sullivan is its industry advisor.
