On April 26, Baize Healthcare Group (hereinafter referred to as “Baize Healthcare”) submitted a prospectus on the Hong Kong Stock Exchange, with CMB International as the sole sponsor.
According to Ruizai Financial Research, Baize Medical is an oncology medical group that invests in and provides medical-related services. As of the last practical date, Baize Medical has operated and managed eight hospitals in Beijing, Tianjin, Shanxi, Anhui and Henan provinces through direct equity ownership in six private for-profit hospitals and management rights for two private non-profit hospitals, focusing on providing full-cycle cancer care services.
In terms of performance, from 2021 to 2023, Baize Healthcare's revenue was 462 million yuan, 803 million yuan, and 1,072 million yuan respectively, with a compound annual growth rate of 52.4%; corresponding net losses were RMB 61.955 million, 75.55 million yuan, and 24.406 million yuan, respectively, with a cumulative loss of 162 million yuan over three years.
According to the prospectus, for the year ended December 31, 2021, 2022, and 2023, revenue from oncology related services was $177.7 million, $243 million and $345 million respectively, accounting for about 56.3%, 39.3% and 42.4% of total hospital business revenue for the same period.
Baize Healthcare's revenue mainly comes from hospital business (including inpatient services, outpatient services, etc.). It was 315 million yuan, 618 million yuan and 814 million yuan for the year ended December 31, 2021, 2022, and 2023, respectively, accounting for 68.2%, 77% and 75.9% of total revenue for the same period.
From 2021 to 2023, the total number of outpatients at Baize Medical's own hospital was approximately 196,500, 547,900, and 701,500, respectively. The total number of hospitalizations at its own hospitals was 5,834, 30,700, and 44,500, respectively. In the same period, the total number of outpatients at Baize Medical Trusteeship Hospital was 485,200, 456,500, and 493,600, respectively. The total number of hospitalizations at the Trusteeship Hospital was 23,300, 23,800, and 291,000, respectively.
The profitability of hospitals within the Baize Healthcare System is affected by fluctuations in the cost of medicines, medical equipment, and consumables. For example, for the year ended December 31, 2021, 2022, and 2023, Baize Medical's inventory costs were $276 million, $459 million, and $575 million respectively, accounting for 65.6%, 63.4% and 64.3% of the total main operating costs for the same period.
According to Baize Medical's official website, in terms of a team of medical professionals, Baize Medical said that experts from Beijing Medicine and Beizhe Oncology support the development of the discipline.
