BenQ Hospital, the largest private for-profit general hospital group in East China, submitted a prospectus on the Hong Kong Stock Exchange on April 3, 2024 to be listed in Hong Kong. On April 17, the China Securities Regulatory Commission accepted its listing filing application. This week, the China Securities Regulatory Commission International Department issued a request for additional materials for BenQ Hospital:
BenQ Hospital
Please ask your company to provide additional explanations on the following matters, ask a lawyer to check and issue a clear legal opinion:
1. Regarding the shareholding situation, please explain:
(1) In terms of Nanjing BenQ Hospital, Jiashida Labuan and Malaysia's BenQ, Nanjing Hospital of Traditional Chinese Medicine and State-owned Asset Group, the pricing basis, price payment status and tax payment status of shares transferred between the state-owned capital group and Malaysia BenQ, compliance conditions such as whether the transfer price was fair, implemented domestic regulatory procedures such as foreign exchange and state-owned assets management, and overseas investment, etc., and increased the actual payment of registered capital for the seventh time;
(2) In terms of Suzhou BenQ Hospital, compliance with the pricing basis, payment status and tax payment status of shares transferred between Jiashida Labuan and BenQ Malaysia, whether the transfer price is fair, and compliance with domestic regulatory procedures such as foreign exchange, state-owned assets management, and overseas investment.
2. Please indicate whether the scope of business of your company and its subsidiaries covers areas where foreign investment is prohibited or restricted by the state, and whether they continue to comply with relevant foreign investment entry policies before and after this issuance. Ask a lawyer to check and issue a clear legal opinion.
3. Please indicate whether the medical institutions operated by your company and its employees have relevant qualifications, whether there were any acts operating beyond the scope of the qualification during the reporting period, and whether there were any major medical accidents or medical disputes, administrative penalties, etc. during the reporting period. Ask a lawyer to check and issue a clear legal opinion. Please provide a copy of the medical institution's license certified by a lawyer from your company and the medical institution operated by the subsidiary.
4. Please explain:
(1) Whether your company and its subsidiaries carry out Internet diagnosis and treatment activities, if so, please indicate the specific business model and the corresponding relationship with revenue, whether they have obtained permission to carry out Internet diagnosis and treatment activities, and whether they meet the requirements of relevant laws and regulations such as the “Internet Diagnosis and Treatment Management Measures (Trial)”, “Internet Hospital Management Measures (Trial)”, and “Internet Diagnosis and Treatment Regulatory Rules (Trial)”. Ask a lawyer to check and issue a clear legal opinion.
(2) Whether your company and its subsidiaries have business cooperation with public hospitals regarding hospital business and medical plans, management and technical support services. If so, please explain in detail the cooperation model, division model, etc., and whether it complies with the requirements of relevant laws and regulations such as the Basic Medical Care and Health Promotion Law.
5. Please provide additional information on the operation of your company's employee shareholding platform, funding structure, equity incentive arrangement, whether it is possible to clarify the employment status of specific individuals and investors, and explain the reasons for employees' shareholding, withdrawal, share transfers, etc., and whether they comply with relevant regulations, and whether there are any disputes or disputes; if so, whether it poses an obstacle to this offering. Ask a lawyer to check and issue a clear legal opinion.
6. Please explain: The scale of information collected and stored by customers, suppliers, etc. of products such as websites, apps, applets, etc. developed and operated by your company, and whether it involves providing domestic personal user data information to third parties or overseas, whether it complies with laws and regulations relating to the exit of personal information, and explain the arrangements or measures for domestic personal information protection and data security before and after listing.
Link to BenQ Hospitals prospectus:
