We are an oncology healthcare group that principally engages in the investment in, and provision of, medical and healthcare related services in the PRC.
We are a service provider in the field of full-cycle oncology healthcare services, and screening, diagnosis, treatment and rehabilitation are core services we provided in our full-cycle oncology healthcare services system. Our value proposition is people-oriented with the focus on the provision of oncology-related healthcare services, including but not limited to oncology diagnosis for patients, various kinds of oncology treatment, oncology rehabilitation and hospice care, as well as screening and early detection of cancer, vaccination and health management services to other potential healthy people including family members of oncology patients. We are dedicated to provide full-cycle oncology healthcare services to individuals (i) who have been diagnosed with cancer; (ii) who present with average or high risks of cancer, such as those with cancer incidents in their family history; and (iii) who have received oncology treatment including radical oncology treatment.
By acquiring equity ownership and management rights, we have successively operated and managed eight hospitals in Beijing, Tianjin, Anhui Province, Shanxi Province and Henan Province, respectively. Among them, as the starting step of our development history and comprehensive layout in the industry where we operate, Western Beijing Cancer Hospital has continually acted as the role of our flagship hospital with advantages in oncology-related disciplines. With respect to our subsequent acquisitions of our other In-network Hospitals, based on that we have taken into account the major factors from the perspective of our development strategy including high incidence factors in relation to oncology-related diseases, market demands and the hospitals’ existing capabilities with respect to the corresponding disciplines, we accomplished the layout of our In-network Hospitals in the corresponding fields where we operate. Benefiting from the strategy as aforesaid, we are capable of empowering the hospitals in our network upon the integration of them. In addition, we make use of our medical resources to establish cancer screening centers and rehabilitation centers, conduct talents training and introduction of medical equipment. Therefore, such hospitals’ capabilities with respect to oncology discipline has been enhanced greatly.
With our continuous efforts, the market position of our In-network Hospitals have been significantly enhanced, in particular, two hospitals within our network have achieved outstanding growth in the aspects of disciplinary expertise, diagnosis and treatment capability and service quality. Our Taiyuan Peace Hospital has become the first Class-III rehabilitation specialist hospital in Shanxi Province since March 2023 after obtaining the approval by the PRC Government to be upgraded to Class-III rehabilitation specialist hospital from Class-IIA comprehensive hospital and our Wuzhi Jimin Hospital has become the first Class-III comprehensive hospital in Wuzhi County since April 2024 with the approval of the PRC Government for the upgrade to Class-III comprehensive hospital from Class-IIA comprehensive hospital.
As of December 31, 2024, all of our six self-owned hospitals and Huangshan Shoukang Hospital established Screening and Early Detection of Cancer and Prevention Center, Screening and Early Detection of Cancer Center or Screening and Early Detection of Cancer Assessment Center, applied and promoted the standards of screening and early detection of cancer in primary practice to provide a continuous healthcare services for screening and early detection of cancer and oncology diagnosis and treatment. The abovementioned hospitals have established rehabilitation departments and/or standardized and specialized oncology rehabilitation centers for provision of our rehabilitation services to the oncology patients. Our revenue generated from provision of oncology-related services was RMB242.7 million, RMB345.0 million and RMB470.4 million for the years ended December 31, 2022, 2023 and 2024, representing 39.3%, 42.4% and 49.4% of our total revenue derived from our hospital business for the same years, respectively.
Meanwhile, depending on the market position we have and the products and services we provide, we create a combination of online and offline business model to empower separate entities, primarily including clients with needs for full-cycle oncology healthcare services and patients, healthcare institutions and medical professionals, healthcare institution management teams and the government and the society. We provide high-quality products and services to these entities and are able to attract them by offering unique value propositions to each of them based on their respective needs and/or requirements in our business chain.
As we believe that our business will continue to grow, we will continue to encounter challenges in implementing our managerial, operational and financial strategies to keep up with our growth and maintain competitiveness in our industry.
Our Business Model
During the Track Record Period, we generated our revenue mainly from (i) operating six private for-profit hospitals we owned and providing healthcare services including full-cycle oncology healthcare services; (ii) managing and operating, and receiving management fees from two private not-for-profit hospitals in our In-network Hospitals; and (iii) supply of pharmaceuticals, medical equipment and consumables. Given the nature of healthcare service market in the PRC, we focus on full-cycle oncology healthcare services as a core part of our business operations, and we expect this trend to continue in the future.
Hospital Business
During the Track Record Period, we generated revenue primarily from provision of healthcare services in a wide range of specialties, including but not limited to oncology, rehabilitation, general surgery, gastroenterology and urology, to our patients through our self-owned private for-profit hospitals. In terms of treatment process, we generate revenue primarily from inpatient services and outpatient services. Inpatient services refer to the treatment of patients who are hospitalized overnight or for an indeterminate period of time in our In-network Hospitals, usually several days or weeks, subject to the patients’ conditions and recovery. Outpatient services refer to the diagnosis or treatment of patients who visit our In-network Hospitals but not at this time require a bed or to be admitted for overnight care.
Hospital Management Business
We manage and operate, and receive management fees from private not-for-profit hospitals, Huangshan Shoukang Hospital, which is a Class-III comprehensive hospital located in Huangshan of Anhui Province and Taiyuan Wanbailin District Peace Community Health Service Center, which is a community health service center located in Taiyuan of Shanxi Province, of which we hold their corresponding organizer’s interest, respectively. Pursuant to the hospital management agreements entered into between our Managed Hospital and Health Service Center and our Group, we are entitled to receive management fees calculated based on a fixed percentage of the revenue of the Managed Hospital and Health Service Center for a period of 40 years from January 1, 2022 to December 31, 2061. Please see “Business – Our Hospital Management Business” in this document for further details.
Supply of Pharmaceuticals, Medical Equipment and Consumables
During the Track Record Period, we sold pharmaceuticals, medical equipment and consumables primarily in Anhui Province and Jiangsu Province in the PRC, and we also sold a small portion of pharmaceuticals in the PRC through a governmental online platform with the purpose for centralized purchase of pharmaceuticals. During the Track Record Period, majority portion of our supply of pharmaceuticals, medical equipment and consumables in this business sector derived from our sales to wholesale customers, including hospitals, pharmacies and pharmaceutical product resellers, who generally onsold such products to end users. We maintain a buyer/seller relationship with our wholesale customers.
Source: Bayzed Health (02609) Prospectus (IPO Date : 2025/06/13) |