New stock news | Zhuo Zheng Medical three times filed with the Hong Kong Stock Exchange, with annual revenue of 696 million, Tencent and H Capital are shareholders.

According to the disclosure by the Hong Kong Stock Exchange on November 5th, ZHUOZHENG Medical Holdings Limited (ZHUOZHENG Medical) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with HAITONG INT'L and Puyin International acting as its joint sponsors. This is the company's third time applying for listing on the Hong Kong Stock Exchange, having previously submitted listing applications on May 16, 2024, and March 18, 2025. According to the prospectus, based on data from Frost & Sullivan, as of 2024, ZHUOZHENG Medical is the third-largest private high-end comprehensive medical service organization in China, with a market share of 2.0%. Additionally, based on data from Frost & Sullivan, the private high-end comprehensive medical service market in China is highly fragmented. As of December 31, 2024, in terms of the number of Chinese cities covered and the number of paid patient visits in 2024, ZHUOZHENG Medical ranked first and second among all private high-end comprehensive medical service groups. ZHUOZHENG Medical has strategically focused on serving the high-end medical service market, targeting affluent individuals with strong purchasing power who prefer more personalized medical services. With a centralized, standardized, and digitalized management system, ZHUOZHENG Medical has established a network covering some of the most economically developed cities in China, including Shenzhen, Guangzhou, Beijing, Chengdu, Suzhou, Changsha, Shanghai, Chongqing, Hangzhou, and Wuhan. As of the last feasible date, the company owns and operates 19 medical service institutions across China, including 17 clinics and two hospitals. Additionally, as of the last feasible date, ZHUOZHENG Medical operates four general practice clinics in Singapore and one in Malaysia. The company intends to continue expanding its medical service network through organic growth and strategic acquisitions by CKH HOLDINGS, and penetrate more new first-tier cities. Under the guidance of a comprehensive medical approach, ZHUOZHENG Medical adopts a family medical model, integrating physical and online medical services. The company has built a growing patient base. As of the end of 2022, 2023, and 2024, as well as the end of August 31, 2024, and August 31, 2025, the total number of patients served at the company's medical service institutions in China during the relevant periods were 162,393, 201,335, 242,549, 190,685, and 212,180, respectively. The total number of paid patient visits to ZHUOZHENG Medical's medical service institutions and online medical service platform were 529,829, 733,397, 905,825, 595,070, and 642,132, respectively, during the periods mentioned. The patient retention rates were 75.7%, 78.2%, 80.0%, and 82.7% for the end of 2022, 2023, 2024, and August 31, 2025, respectively. Furthermore, as of August 31, 2025, ZHUOZHENG Medical has 387 full-time doctors, with an average of approximately 15 years of practice experience after obtaining their qualifications, of which about 79% had previously practiced in top-tier tertiary hospitals before joining the company. The company's competitive advantages include being the third-largest private high-end comprehensive medical service organization in China based on 2024 revenue, with high brand awareness; a family medical model that integrates physical and online medical services, enabling the company to build a growing patient base; a high-quality and stable medical team with a sound talent development framework; a centralized, standardized, and digitalized management system, as well as early adoption of artificial intelligence technology to ensure service quality, operational efficiency, and scalability; a stable and dedicated senior management team with diverse industry experience. Financial Information Revenue From 2022 to 2024, ZHUOZHENG Medical achieved revenues of RMB 473 million, RMB 690 million, and RMB 959 million, showing an increasing trend year by year. For the eight months up to August 31, 2025, the company's revenue was RMB 696 million. Net Loss/Net Profit In 2022 and 2023, ZHUOZHENG Medical recorded net losses of RMB 222 million and RMB 353 million, respectively. However, the company reported net profits of approximately RMB 80.227 million and RMB 83.211 million in 2024 and for the eight months up to August 31, 2025, respectively. Gross Profit and Gross Margin ZHUOZHENG Medical's gross margin increased from 9.3% in 2022 to 19.3% in 2023, and further increased to 23.6% in 2024. The filing mentioned that the increase in the gross margin was mainly due to the increase in the gross margin of physical medical services, which was attributed to the company's improved operational efficiency and increased patient visits leading to greater economies of scale. The company's gross margin remained relatively stable at 24.8% and 24.0% for the eight months ending in 2024 and August 31, 2025, respectively. Industry Overview According to the prospectus, as of the end of 2024, there were a total of 1.092 million medical service institutions in China. Medical service institutions can be divided into public and private entities. From 2020 to 2024, the number of public medical service institutions in China slightly increased from 537,000 to 537,700, while the number of private medical service institutions increased from 483,000 to 554,300, with a compound annual growth rate of 3.5%. It is expected that from 2024 to 2029, the number of public medical service institutions in China will decrease from 537,700 to 528,400, while the number of private medical service institutions will continue to grow from 554,300 to 669,900, with a compound annual growth rate of 3.9%. The development of the Chinese economy and the increasing purchasing power of Chinese residents have driven the surge in demand for personalized and efficient medical services, thereby promoting the rapid growth of the private medical service market in China. The revenue of private medical service institutions in China increased from RMB 676 billion in 2020 to RMB 1.2922 trillion in 2024, with a compound annual growth rate of 17.6%. It is further expected that the revenue will continue to grow at a compound annual growth rate of 11.3% from 2024 to 2029, reaching RMB 2.2061 trillion by 2029. With the increase in healthcare awareness and the upgrade of consumer preferences, more patients are choosing private medical service institutions to enhance their medical experience. From 2020 to 2024, the number of patient visits to private medical service institutions increased from 1.157 billion to 1.577 billion at a compound annual growth rate of 8.1%. It is expected to further increase at a compound annual growth rate of 4.7% from 2024 to 2029, reaching 1.9876 billion by 2029. Private medical service institutions, especially private high-end medical service institutions, have higher average outpatient expenditures compared to public medical service institutions in China, maintaining a stable growth trend at a compound annual growth rate of 9.3%, increasing from RMB 212.1 in 2020 to RMB 302.4 in 2024. Driven by the increasing purchasing power of Chinese residents, the average outpatient expenditure at private medical service institutions in China is expected to further increase at a compound annual growth rate of 6.0% from 2024 to 2029, reaching RMB 404.8 in 2029. Board of Directors and Management Information The company's board of directors consists of 11 directors, including two executive directors, five non-executive directors, and four independent non-executive directors. The board of directors serves a term of three years, responsible for business management and operations, and possesses general powers in relation to these matters. Ownership Structure The ownership structure of ZHUOZHENG Medical is relatively complex and diverse. Since its establishment, ZHUOZHENG Medical has attracted attention in the capital markets and has received investments from institutions such as Fude Life Insurance and Tencent. Tencent holds 19.39% of ZHUOZHENG Medical through its affiliated structures. H Capital holds 14.89%. According to the prospectus, Cheuk Sing Ho has seven shareholders, namely Mr. Wang Zhiyuan, two other directors, Mr. Shi Yi and Mr. Zhang Xiangdong, two senior management personnel, Dr. Zhu Yan and Mr. Zhou Fang, and two other individuals, Mr. Zhang Dongsheng and Ms. Zhao Yu, holding 39.1%, 18.4%, 2.2%, 9.2%, 5.1%, 1.1%, and 24.9% of the shares, respectively. Under the Cheuk Sing Ho agreement, Mr. Wang Zhiyuan (as the sole director of Cheuk Sing Ho) has the sole right and power to make decisions and vote on behalf of Cheuk Sing Ho in all matters of the company. Mr. Wang Zhiyuan and Cheuk Sing Ho will become the controlling shareholders of the company. Advisory Team Joint Sponsors: HAITONG INT'L and Puyin International Legal Advisors for Joint Sponsors: (1) Hong Kong and U.S. Law: Sullivan & Cromwell LLP (Hong Kong) LLP; (2) Chinese Law: JunHe LLP Company Legal Advisors: (1) Hong Kong and U.S. Law: Mayer Brown; (2) Chinese Law: Grandall Law Firm; (3) Cayman Islands Law: Carey Olsen; (4) Singapore Law: Helmsman LLC Industry Consultant: Frost & Sullivan Consulting (Beijing) Ltd. Shanghai Branch Compliance Advisor: HAITONG INT'L Capital Ltd.