Financial Services Association, April 28 (Editor: Feng Yi) On April 26, Baize Medical Group submitted an IPO application to the Hong Kong Stock Exchange. CMB International was the sole sponsor.

According to the prospectus, Baize Medical is a leading oncology medical group in China that mainly invests in and provides medical-related services. The group focuses on providing full-cycle cancer medical services such as cancer screening, tumor diagnosis, tumor treatment, and tumor rehabilitation for cancer patients and people at high risk of cancer, including families of cancer patients.

According to Frost & Sullivan's data, as of December 31, 2022, Baize Medical's own hospital ranked fifth in cancer service revenue among all private cancer hospital groups in China, ranked first in the number of early cancer screening centers, and number one in the number of annual gastroenteroscopy cases.

According to the prospectus, the group has 6 own hospitals and 2 managed hospitals in China. Among them, it includes 2 level-III general hospitals, 1 level-3 rehabilitation specialist hospital, and 1 level-2 oncology specialist hospital, distributed in Beijing, Tianjin, Anhui, Shanxi, Henan, etc.

Financial reports show that in 2021-2023, Baize Medical Group's revenue was RMB 462 million, 803 million and RMB 1,072 million, respectively; net losses for the same period were RMB 61.955 million, 75.55 million, and RMB 24.406 million, respectively.

Baize Medical revealed that the financing will mainly be used to: strengthen full-cycle oncology medical services (including purchasing equipment and hiring professional medical personnel), acquire new hospitals, expand hospital management services, and upgrade information technology infrastructure systems.

At the industry level, according to the China Health Statistics Yearbook, as far as the revenue of all hospitals in China is concerned, private hospitals are growing faster than public hospitals.

According to data, the revenue of private hospitals increased from RMB 383.8 billion in 2018 to RMB 607.4 billion in 2022, with a compound annual growth rate of 12.2%.

According to forecasts, the revenue of private hospitals will further increase to RMB 1,094.3 billion in 2026, with a compound annual growth rate of 15.9%, and to RMB 1,932.4 billion in 2030, with a compound annual growth rate of 15.3%.

Furthermore, the market size of China's oncology medical services market increased from RMB 337.1 billion in 2018 to RMB 495.1 billion in 2022, with a compound annual growth rate of 10.1%.

As demand for cancer treatment continues to grow and availability continues to increase, the market size of China's oncology medical services market is expected to reach RMB 768.7 billion by 2026, with a compound annual growth rate of 11.6% from 2022 to 2026.

At the business level, as of 2023, the company's revenue mainly came from hospital business (including inpatient services, outpatient services and others), accounting for 75.9% of current revenue. Another major revenue was the pharmaceutical, medical equipment and consumables business, which accounted for 20.1% of revenue in 2023.

It is worth noting that in the past three years, the number of outpatients at Baize Healthcare increased sharply from 196,500 in 2021 to 701,500 in 2023, an increase of 257.08%. The number of hospitalizations also increased from 5,834 to 44,461 during the same period.

According to Baize Medical's reminder, part of the hospital revenue within the system comes from providing medical services to patients covered by public health insurance, and the health insurance payment plan and cycle may have an impact on the company's business performance.

Furthermore, circumstances such as the failure of the company's hospital expansion plan, damage to the hospital's brand image, and the failure to renew the hospital managed by the company may all have a negative impact on the company's performance.