Events
On April 20, 2022, Yuanxin technology updated the prospectus and submitted it to the Hong Kong stock exchange. According to the company’s prospectus, the company operates the largest comprehensive medical delivery platform for prescription drugs in China, with services covering the whole disease management cycle of patients; At the same time, it provides value-added services to other participants in the medical and health industry.
We hereby sort out the main contents of the company’s prospectus for the reference of investors.
Investment elements
Yuanxin technology is a medical and health company that delivers value to patients and provides reliable and high-quality full-cycle medical and health services. Driven by technology, the company’s products and services focus on the whole medical service cycle of patients. According to frost Sullivan, in 2020, the company operated China’s largest comprehensive medical delivery platform focusing on prescription drugs in terms of revenue.
Business: the company’s business is divided into three parts, namely, the medical platform for out of hospital comprehensive patient service, supply side enabling service and Innovation Medical Management Co.Ltd(002173) health service, covering all participants in the medical and health industry and providing comprehensive, personalized and considerate services to patients. The three service sections complement each other, strive to provide reliable and high-quality full-cycle medical and health services, and participate in the whole process of in-hospital treatment, out of hospital medical delivery and even medical insurance payment. The company’s Internet hospital platform “doctor miaozhou” is one of the first Internet hospitals to obtain online medical practice licenses in China. As of 2021, the average monthly user visits were 40.2 million, including about 5.6 million paying users. The company’s offline DTP pharmacy, which mainly sells new and special drugs, has 264 pharmacies in 2021, including 176 side stores, 171 designated pharmacies for medical insurance and 39 dual channel qualified pharmacies. Build a pharmacy network through doctor miaozhou and Yuanxin pharmacy, and the prescriptions can flow smoothly to the pharmacy. In 2019 / 20 / 21, about 1.8 million, 2.8 million and 5.5 million prescriptions will be accepted through the pharmacy network. The insurance platform Yuanxin Huibao launched innovative insurance products focusing on new and special drugs, inclusive commercial insurance, sickness insurance and drug welfare insurance. In 2021, the company cooperated with more than 100 insurance companies to launch more than 40 specialty drug insurance and more than 90 Huimin insurance, with about 7 million insurance policies.
Industry: China has a huge medical and health market, and the scale of medical and health expenditure is huge and growing steadily. According to frost Sullivan, in 2020, China’s total medical and health expenditure ranked second in the world. However, in 2020, China’s per capita medical and health expenditure ranked ninth among the top ten countries with the highest Chinese GDP in the world, with growth potential. Using data to empower the traditional medical and health industry can improve the accessibility of patients, improve the promotion efficiency of new drugs, improve the operation efficiency of hospitals, provide diversified health insurance products, and improve the pain points of the traditional medical and health industry.
Finance: the total revenue of the company in 2019 / 20 / 21 was 2.35/36.3/5.94 billion yuan respectively, with a year-on-year increase of 186.70% / 54.33% / 63.62%; The net profit attributable to the parent company is – 220 / – 414 / – 905 million yuan. With the increase of the company’s scale in Internet hospitals, drug sales and commercial insurance, the sales expenses have also increased. The gross profit margin from 2019 to 2021 is 10.6% / 9.2% / 9.0% respectively. Up to now, the company’s main revenue comes from out of hospital comprehensive patient services, accounting for 97.9% / 97.5% / 94.6% in 2021 / 22 / 23 respectively. The revenue of supply side enabling services and Innovation Medical Management Co.Ltd(002173) health services is growing rapidly.
Competitive advantages of the company: it has a comprehensive medical and health platform, an out of hospital patient service delivery network, an online ecosystem of patient services, diversified liquidity opportunities, and strong technology and R & D capabilities.
Purpose and planning of fund raising: develop comprehensive patient services outside the hospital, strengthen supply side enabling services, develop Innovation Medical Management Co.Ltd(002173) health services, and improve the strength and data analysis ability of the technology platform.
Risk tips
The risk that the competition of commercial health insurance intensifies and the expansion of insurance business is less than expected; The risk of policy changes affecting medical insurance settlement; The risk that the demand for online diagnosis and treatment is less than expected.
