The Zhitong Finance App learned that according to the Hong Kong Stock Exchange disclosure on April 3, BenQ Hospital Group Co., Ltd. submitted a listing application to the main board of the Hong Kong Stock Exchange, with CICC and Citibank as its sponsors.

According to the prospectus, BenQ Hospital draws on Taiwan's advanced hospital operation and management experience and is a pioneer and leader of a private for-profit general hospital group in mainland China. The company currently owns and operates two general hospitals. According to Frost & Sullivan's data, in terms of revenue generated from medical services in 2022, BenQ Hospital is the largest private commercial general hospital group in East China, with revenue exceeding the second and third places; in terms of the same caliber, BenQ Hospital ranked fifth in the national private for-profit general hospital group, and is the only group in the top five that has a tertiary hospital; in terms of average revenue per registered bed in 2022, BenQ Hospital ranked first among all private commercial general hospital groups in mainland China.

As of December 31, 2023, BenQ Hospital's two hospitals have a total operating area of about 380,000 square meters, a total of 1,850 registered beds, and a team of over 900 doctors, including 35 experts from Taiwan and overseas. In 2023, the company's outpatient visits exceeded 2 million, and the number of inpatient surgeries exceeded 20,000 per year. BenQ Hospital has built two general hospitals, Nanjing BenQ Hospital and Suzhou BenQ Hospital.

BenQ Hospitals focuses on providing continuous high-quality medical services to patients through multidisciplinary private for-profit general hospitals. During the track record period, its revenue mainly came from the provision of comprehensive medical services, including inpatient medical services and outpatient medical services. The following table shows the revenue components of BenQ Hospitals by segment for the year shown (in absolute amounts and as a percentage of total revenue):

In recent years, with economic development, policy encouragement, and people's demand for medical services has increased and diversified, private hospitals in China have grown more rapidly than public hospitals due to their flexibility in management models, service planning, and pricing. According to Frost & Sullivan's data, the market size (in terms of revenue) of private hospitals in China is expected to increase from RMB 319.1 billion in 2017 to RMB 607.4 billion in 2022, with a compound annual growth rate of 13.7% from 2017 to 2022; it is expected that by 2026, the market size of private hospitals will reach RMB 1094.3 billion, with a compound annual growth rate of 15.9% from 2022 to 2026.

On the financial side, in 2021, 2022, and 2023, the company achieved revenue of approximately RMB 2,224 billion, RMB 2,336 billion, and RMB 2,688 billion, respectively. In the same period, the company's annual profits were approximately RMB 69.075 million, RMB 89.55 million, and RMB 167 million respectively.

According to BenQ Hospitals' prospectus, the development and expansion of the new medical institution may cause its financial performance to fluctuate, and the new medical institution may not be able to achieve profitability in a timely manner as expected, or at all. New medical institutions generally require significant investment, capital expenditure (such as capital) and investment due to the construction, decoration and/or renovation of the property, recruitment of appropriate staff, and procurement of necessary medical and other equipment. As a result, associated costs and expenses, such as amortization, depreciation of property, plant and equipment, employee expenses, and rent expenses, begin to accrue during this initial phase of operation. Therefore, the development and expansion of new medical institutions may affect the company's operating performance and may cause fluctuations from period to period.