New Stock News | Baize Medical Successfully Passes Hong Kong Stock Exchange Hearing Focuses on Providing Comprehensive Cancer Care Services

According to the disclosure of the Hong Kong Stock Exchange on June 6, Bai Ze Medical Group (Bai Ze Medical) conducted a hearing for listing on the main board of the Hong Kong Stock Exchange, with CMB International as its exclusive sponsor. According to the prospectus, Bai Ze Medical is a service provider in the field of "tumor full-cycle medical services", with screening, diagnosis, treatment, and rehabilitation being the core services provided by the company in the tumor full-cycle medical service system. The company focuses on providing tumor-related medical services, including but not limited to tumor diagnosis, various methods of tumor treatment, tumor rehabilitation and end-of-life care, as well as early cancer screening, tumor vaccine administration, and health management services for other potential groups, including family members of tumor patients. As of the final feasible date (June 4, 2025), Bai Ze Medical operates and manages eight hospitals in Beijing, Tianjin, Shanxi Province, Anhui Province, and Henan Province through direct equity ownership in six private for-profit hospitals and management rights in two private non-profit hospitals, focusing on providing tumor full-cycle medical services. Among them, Beijing Jingxi Tumor Hospital has always been the flagship hospital of Bai Ze Medical, with advantages in tumor-related disciplines. With continuous efforts, the market position of the hospitals within the Bai Ze Medical system has significantly improved, especially with two hospitals in the system achieving great improvement in discipline expertise, diagnosis and treatment capabilities, and service quality. Since March 2023, approved by the Chinese government, Taiyuan Ping Hospital has been upgraded from a Class II Grade A comprehensive hospital to a Class III rehabilitation specialty hospital, becoming the first Class III rehabilitation specialty hospital in Shanxi Province. Since April 2024, approved by the Chinese government, Wuzhi Jimin Hospital has been upgraded from a Class II Grade A comprehensive hospital to a Class III comprehensive hospital, becoming the first Class III comprehensive hospital in Wuzhi County. As of December 31, 2024, all six self-owned hospitals of Bai Ze Medical and Huangshan Shoukang Hospital have established early cancer screening and prevention centers, early cancer screening centers, or early cancer screening and evaluation centers, to apply and promote early cancer screening standards at the grassroots level and provide continuous medical services for early cancer screening, tumor diagnosis, and treatment. The above hospitals have established rehabilitation departments and/or standardized and specialized tumor rehabilitation centers to provide rehabilitation services for tumor patients. During the performance recording period, Bai Ze Medical's income mainly comes from the following: (i) operating six private for-profit hospitals owned by the company, providing medical services including tumor full-cycle medical services; (ii) managing and operating two private non-profit hospitals within the system and collecting management fees from them; and (iii) supplying drugs, medical equipment, and consumables. Considering the nature of the Chinese medical services market, the company focuses on tumor full-cycle medical services and considers it as a core part of its business operations, expecting this trend to continue in the future. In terms of market space, according to Frost & Sullivan data, from 2018 to 2022, the annual compound growth rate of new cancer cases in China is approximately 2.9%, and the annual compound growth rate of cancer deaths in China is approximately 3.0%. As of December 31, 2022, there are approximately 4.8 million new cancer cases and 2.9 million deaths in China, accounting for approximately 23.8% and 27.4% of global new and death cases respectively, making China the top country in the world in terms of new cancer cases and deaths. In addition, the scale of the private tumor medical services market in China (calculated by revenue) increased from approximately RMB 29.1 billion in 2018 to approximately RMB 53 billion in 2022, with an annual compound growth rate of approximately 16.2%, and is expected to increase to approximately RMB 109.2 billion by 2026, with an annual compound growth rate of approximately 19.8%. During the performance recording period, Bai Ze Medical achieved significant growth. The company's income increased from approximately RMB 802.7 million for the year ended December 31, 2022 to approximately RMB 1.0722 billion for the year ended December 31, 2023, and further increased to approximately RMB 1.1888 billion for the year ended December 31, 2024, with an annual compound growth rate of 21.7%. The company's gross profit increased from approximately RMB 79.6 million for the year ended December 31, 2022 to approximately RMB 178.2 million for the year ended December 31, 2023, and further increased to approximately RMB 208.2 million for the year ended December 31, 2024, with an annual compound growth rate of 61.8%.