On December 13, 2024, Bayzed Health Group Inc (hereinafter referred to as "Bayzed Health Group"), from the Fengtai District of Peking, submitted a prospectus to the Hong Kong Stock Exchange, intending to be listed on the Main Board. This is a reapplication following the invalidation of its previous submission on April 26, 2024.
Link to the Baize Medical Group prospectus:
https://www1.hkexnews.hk/app/sehk/2024/106973/documents/sehk24121301723_c.pdf
Main Business
Baize Medical Group is a major oncology medical group in China engaged in investment and providing Medical Services. It operates and manages eight hospitals through direct equity ownership of six for-profit private hospitals and management rights of two non-profit private hospitals in Peking, Tianjin, Shanxi Province, Anhui Province, and Henan Province, focusing on providing full-cycle oncology Medical Services, including but not limited to early cancer screening, tumor diagnosis, tumor treatment, and tumor rehabilitation.
According to Frost & Sullivan's data,
In 2023, based on the tumor service revenue from its own hospitals, Baize Medical Group ranked fourth among all private oncology medical groups in China, with a corresponding market share of 0.5%;
Based on the number of early cancer screening centers as of December 31, 2023, Baize Medical Group ranked first among all private oncology medical groups in China. By the end of 2023, all hospitals within the company's system had established early cancer screening centers, except for the Health Service Center in Heping Community, Wanbailin District, Taiyuan City.
In 2023, based on the number of gastrointestinal endoscopic examination cases, Baize Medical Group ranked first among all private oncology medical groups in China, with a total of over 0.03 million gastrointestinal endoscopic examination cases in its hospital system.
Baize Medical Group acquired Peking Jingxi Oncology Hospital in June 2018. This hospital is the first main Operation hospital of the company. The company relies on the disciplinary advantages of Peking University Cancer Hospital to seize the differential competitive advantage of full-cycle Medical Services for oncology, and build Peking Jingxi Oncology Hospital into the flagship hospital of the company's hospital system, thereby empowering its hospitals located in other provinces and cities.
As of June 30, 2024, the eight hospitals within the Baize Medical Group system include:
The company owns 6 private for-profit hospitals (providing Medical Services): Peking Jingxi Oncology Hospital, Tianjin Shishi Hospital, Tianjin Nankai Jixing Hospital, Taiyuan Heping Hospital, Hefei Baihui Changrong Hospital, and Wuzhi Jiming Hospital;
2 private non-profit hospitals (charging management fees for management and Operation services): Huangshan Shoukang Hospital and Taiyuan Wanbailin District Heping Community Health Service Center.
As of June 30, 2024, there are a total of 988 practicing physicians in the Baize Medical Group's hospital system, including 157 chief physicians, 252 associate chief physicians, 329 attending physicians, 168 resident physicians, and 82 medical practitioners. As of June 30, 2024, our hospital system has 2,687 medical professionals providing Medical Services, including early cancer screening, tumor diagnosis, tumor treatment, and tumor rehabilitation, specializing in types such as gastrointestinal tumors, urological tumors, lung cancer, and breast cancer.
The revenue of Baize Medical Group primarily comes from:
Operating the company's own 6 private for-profit hospitals, providing Medical Services including full-cycle Medical Services for oncology, inpatient services, and outpatient services;
The company manages and operates two private non-profit hospitals within its system and charges management fees from them. The company holds the related stakeholder rights of these two hospitals, and according to the hospital management agreement signed between the managed hospitals and the group, the company has the right to receive a management fee calculated as a fixed percentage of the managed hospital's revenue over a period of 40 years.
Supplies Pharmaceuticals, Medical Devices, and consumables. The company primarily sells Pharmaceuticals, Medical Devices, and consumables in Anhui Province and Jiangsu Province in China, and also sells a small portion of Pharmaceuticals in China through the government online centralized procurement platform.
Shareholder Structure
The prospectus shows that in the pre-listing Shareholder structure of Baize Medical Group,
Ms. Xu Xu controls Bayway Fund L.P., holding 57.5577%;
* Shareholders of Bayway Fund L.P.: Rose Violet X owns 1.25% (the only general partner, Ms. Xu indirectly owns 80%, and Cui Yong indirectly owns 20%), Blue Crystal K owns 15.05% (GP Baihui Investment Fund is controlled by Ms. Xu, LP is Suzhou Beiyi Baihui 99.8536%), Verdancy C owns 45.32% (Chen Hua indirectly holds 90%, Li Yi indirectly holds 10%), Lavender J owns 38.38% (Huang Zhuguang and Jiang Yanrong couple holds 90% and 10% respectively).
Zhu Hongbing and his son Cui Yifan hold 8.0917% through Xuxi Holding;
* The shareholders of Xuxi Holding are Shanghai Xuxi Management and Suzhou Beiyi Baihui acting in concert, which is ultimately controlled by Ms. Xu.
Baihui Investment Fund (Ms. Xu 80%, Cui Yong 20%) serves as the GP of some intermediary entities, ultimately controlling shares of Backspace, Cheery Smiley, and Sugar Berry at 0.5484%, 1.1351%, and 2.7916% respectively.
* Backspace, Cheery Smiley, and Sugar Berry are wholly owned by Shanghai Huintong, Shanghai Huinfang, and Shanghai Huinjin respectively, with GP being Baihui Investment Fund, and LPs being Anhui Beiyi Huitong, Anhui Beiyi Huifang, and Anhui Beiyi Huijin. The GPs of Anhui Beiyi Huitong, Anhui Beiyi Huifang, and Anhui Beiyi Huijin are also Baihui Investment Fund, with LPs being Shanghai Yuzheng Zerong, Peking Heshen Jiaye Property Management, and Gongqingcheng Yusheng Investment.
The entities ultimately controlled by Ms. Xu and based on the concerted action arrangement hold a total of 70.1245% of the equity.
LEGENDHOLDING (03396.HK), through Shanghai Zhenghe Sheng, holds 9.2032%;
Shenzhen Zexin Management, Chengdu Luxin Phase II, ShanDong Luxin Dongneng, and Wuxi Jintou Luxin, through Shanghai Shengren, hold 7.6489%;
Yuanming Medical Fund holds 3.1291% through QHYM Investment Ltd.;
Ningbo Changshang Kunzhong holds 1.8406% through Changshang Ltd.;
Renee Lynn holds 1.4060% through Fairy Tale;
Shanghai Haoying Cangyu, Wu Tingting, through Shanghai Zhenmao Information, Hold 1.2373%;
Mason Medical Devices, Hold 0.6135%;
Shanghai Songzhao Yucheng, through SCYC Holdings Limited, Hold 1.6305%;
Huaxin Capital, Luxin Sanqi, through Shanghai Xinlun, Hold 0.5712%;
GF Xinde Investment, Zhuhai GF Xinde, through Shanghai Duohao, Hold 2.5952%.
Board of directors and executives
The Board of Directors of Baize Medical Group consists of 8 Directors, including:
5 Executive Directors: Mr. Zhao Yongkai (Chairman), Ms. Xu Xu (Senior Vice President), Mr. Chen Haoyang (President), Mr. Lu Jizhong (Vice President), Mr. Feng Yu (Vice President and Chief Medical Officer);
Three independent non-executive directors: Mr. Chen Xueliang (Managing Director of Zhuoya Financing), Ms. Liu Shuang (Partner at DeHeng Law Offices), Dr. Guo Wei (Director of the Bone Oncology Department and Director of the Bone Oncology Research Laboratory at Peking University People's Hospital).
In addition to the executive directors, the senior management includes Mr. Yao Le, Vice President and Chief Financial Officer, and Dr. Jiang Zheng, Assistant President.
Company Performance
Financial data shows that in the past years 2021, 2022, 2023, and the first half of 2024, the revenue of Baize Medical Group was RMB 0.462 billion, 0.803 billion, 1.072 billion, and 571 million, respectively, with corresponding net losses of RMB 61.955 million, 75.515 million, 24.406 million, and 7.34 million.
Intermediary Team
The main intermediary team for this IPO includes: CMB International as the exclusive sponsor; KPMG as the auditor; Tongshang, Zhou Junxuan (Tongshang Joint Operation) as the company's lawyer in China and the company's lawyer in Hong Kong; Jingtian Gongcheng and Meimais as the Brokerage's lawyer in China, and the Brokerage's lawyers in Hong Kong and USA; Frost & Sullivan as the industry consultant.
