On September 13, 2023, HealthyWay Inc., a company from Fuzhou, Fujian, submitted its prospectus to the Hong Kong Stock Exchange, planning to be listed on the main board of the Hong Kong Stock Exchange through an IPO. This is the third time they have submitted the prospectus, following the unsuccessful submissions on June 13, 2023, and December 29, 2023.
On June 24, 2024, HealthyWay Inc. received the overseas issuance and listing filing notification from the China Securities Regulatory Commission, and plans to issue no more than approximately 0.109 billion shares of overseas listed ordinary shares.
Link to the prospectus of HealthyWay Inc.:
https://www1.hkexnews.hk/app/sehk/2024/106790/documents/sehk24091301676_c.pdf
Main Business
HealthyWay Inc., as a service platform in the Chinese health and wellness industry, is currently operating one of the largest digital health and medical service platforms in China, according to Frost & Sullivan. As of December 31, 2023, the platform had registered a total of 1.95 billion individual users, 8.772 million registered doctors, and was connected to 11,727 hospitals (including 1,494 tertiary hospitals). As of June 30, 2024, the number of registered individual users on the platform reached 0.195 billion, with 0.8772 million registered doctors, and 11,727 hospitals connected (including 1,494 tertiary hospitals).
HealthyWay Inc. develops services to empower key stakeholders in the Chinese digital health and wellness industry, including (i) individual users, (ii) enterprises and institutions such as pharmaceutical companies, hospitals, insurance companies, and local health departments, and (iii) doctors. For individual users, the company mainly provides health and medical services through its platform, making it easier for them to manage health and wellness. For enterprises and institutions, the company mainly provides corporate services and digital marketing services to improve operational efficiency and drive business growth. The company also involves doctors to play a key role on the platform.
Users can access the health and medical resources on HealthyWay Inc.'s platform through various channels, including the HealthyWay mobile application, the MedicNet website, the company's WeChat official account, and the WeChat Mini Program.
Health Road has two main business segments: medical services, enterprise services, and digital marketing services.
(1) Medical services include health medical support services, value medical services.
Medical support services provide health membership plans, offering a wide range of health medical services to subscribed individual users and corporate clients, including but not limited to appointment arrangements, medical representation, companion services, physical examinations, medical consultation, and surgery appointment arrangement services. For individual clients, the company adopts a subscription-based payment structure, regularly collecting subscription fees. For corporate clients, income comes from charging fixed service fees based on the services and number of orders selected by customers. The company also provides other medical support services, with revenue coming from charging fixed service fees for various medical consulting services, as well as charging agreed service fees to hospitals for providing support services.
Value medical services include health medical comprehensive service packages, pharmaceutical retail business. The company sells health medical comprehensive service packages, consisting of two components provided to subscribed individual users, including health commodities (such as nutritional supplements and transdermal patches) and health membership plans. Pharmaceutical retail business generates revenue by selling pharmaceuticals and medical devices to customers through its own pharmacies.
(2) Enterprise services and digital marketing services include enterprise services, digital marketing services.
Enterprise services provided by the company include content services, collaborating with external doctors and medical experts to meet the corporate demand for quality medical content in the digital health enterprise service market, offering (i) popular science content services, (ii) precision content services, and (iii) real-world research support services. The company also provides information technology services to (i) pharmaceutical and medical health companies and (ii) medical institutions.
Digital marketing services help advertisers promote their products and services on our platform and through other third-party online media channels.
Shareholder Structure
The prospectus shows that in the shareholder structure of Health Road before listing,
Mr. Zhang Wanneng, through Fengji, holds 34.70% of the shares, making him the controlling shareholder.
Mr. Chen Yong, through Jiaman Group, holds 10.73%;
Mr. Zhang Wande (Mr. Zhang Wanneng's brother), through MeiYi, holds 9.50%;
Mr. Hu Depan, through Meixuan, holds 2.05%;
Ms. Zheng Shuxian, through Meixin, holds 1.86%;
Ms. Chen Qin, through Xingda, holds 3.26%;
Yuan Jing (employee shareholder platform, 11 group employees), holds 5.02%.
Xingxing Venture (employee stock platform, 6 group employees and many other individuals), holding 4.37% of shares;
Mr. Liang Jinhua, holding 4.52% of shares through Baisheng Enterprise;
Baidu (09888.HK), holding 12.46% of shares;
Ms. Shi Weimin, holding 4.70% of shares through Meizhunrenhe;
Shangrao State-owned Assets, holding 2.60% of shares through Hongda Yuankang;
Kunquan Xiamen, holding 2.44% of shares through Kunquan;
Shanghai Jiejia, holding 1.13% of shares through Xingyi;
Fuzhou Strait No. 1, holding 0.65% of shares through Strait No. 1.
Board of directors and executives
The board of directors of Health Road consists of 7 directors, including:
2 executive directors: Mr. Zhang Wanneng (Chairman of the Board, CEO), Mr. Chen Jing (Senior Vice President);
2 non-executive directors: Mr. Chen Yong, Mr. Zhang Xiangming;
3 independent non-executive directors: Mr. Xu Jing, Dr. Lu Tao, Ms. Deng Xiaolan.
In addition to the executive directors, the executives include Ms. Lin Xiaoxia, Vice President; Mr. Zhang Yong, Assistant to the CEO and General Manager of Enterprise Customers Department; Mr. Chen Zhufeng, Vice President; Mr. Li Guomin, CFO; Mr. Han Haibin, Head of Pharmaceutical and Therapy Division.
Corporate Performance
According to the prospectus, the operating income of Health Road in the past six months of 2021, 2022, 2023, and the first half of 2024 was RMB 0.431 billion, 0.569 billion, 1.244 billion, and 6.11 billion yuan, respectively, with corresponding net losses of RMB 0.155 billion, 0.256 billion, 0.314 billion, and 57 million yuan. The corresponding adjusted net profits were RMB 0.486 million, 23.919 million, 39.411 million, and 14.842 million yuan.
Intermediary Team
The main intermediaries for the Health Road IPO are: CICC as its exclusive sponsor; Lingfeng Capital as its financial advisor; KPMG as its auditor; Jingtian & Gongcheng, Pu Hui as its company lawyers in China, and its company lawyers in Hong Kong and the United States respectively; Tongshang, Hankun as its brokerage lawyers in China, and its brokerage lawyers in Hong Kong respectively; Foster Sullivan as its industry consultant.