Good News on Listing | Frost & Sullivan Assists Jiangxi Yimian Sunshine Group Co., Ltd. to Successfully List on the Hong Kong Stock Exchange (2522.HK)

Jiangxi Yimai Sunshine Group Co., Ltd. (hereinafter referred to as 'Yimai Sunshine') successfully went public on June 7, 2024. The company plans to issue 17.816 million H shares, including 1.782 million shares in Hong Kong, China and 16.034 million shares internationally. The issue price per share is HK$14.98, raising a net amount of approximately HK$183 million.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

The company is a leading medical imaging specialty group in China;

The company is the only medical imaging platform operator and manager in China that provides diversified imaging services and value across the entire medical imaging industry chain;

The company has an efficient and standardized development and operation management model;

The company has an experienced management team and strong shareholder support.

According to a report by Frost & Sullivan:

Based on patient-end payment fees in 2023, the company ranks first among third-party medical imaging center operators in China;

Based on the revenue from medical imaging center services in 2023, the company ranks second among third-party medical imaging center operators in China;

Ranked first among third-party medical imaging center operators in China, based on the number of outlets, equipment, registered practicing radiologists with the company as their main workplace, and average daily inspection volume in 2023, according to the Medical Imaging Center.

Medical imaging technology refers to the technique that uses X-rays, electromagnetic fields, ultrasonic waves, and other media to interact with the human body, reproducing the internal structure and density of organs in the form of images. Doctors use this information to diagnose, treat, and detect diseases and lesions based on the images. Common types include computed tomography (CT) equipment scans, magnetic resonance imaging (MRI) equipment, X-ray imaging equipment, nuclear medicine diagnostic equipment, and ultrasonic diagnostic equipment.

Source: Frost & Sullivan report

The prices of the main categories of medical imaging services are regulated by provincial medical security bureaus, and there are no significant differences in the prices of medical imaging services across different regions at comparable levels. In addition, PET-CT has been included in the medical service catalogs of some provinces, and the prices of other types of medical imaging services have remained stable in the past few years.

The Chinese medical imaging industry faces challenges such as insufficient medical imaging resources, a lack of medical imaging professionals, and an underemphasis on training and education systems. There are also weaknesses in the imaging service capabilities of primary healthcare systems, limited patient reception capacity at large hospitals, a lack of interaction between imaging doctors and clinical doctors, information barriers due to insufficient medical imaging informatization technology capabilities, and a lack of effective medical imaging quality control.

These challenges and structural characteristics indicate that the Chinese medical imaging industry needs further improvement in resource allocation, professional talent cultivation, and technological innovation to enhance service quality and industry development levels.

The Medical Imaging Center is a healthcare institution that provides imaging examinations and diagnostic services for patients and healthcare consumers. The main participants in the Chinese medical imaging service market include hospital imaging departments and third-party medical imaging centers. Hospital imaging departments in China hold a dominant position in patient volume coverage, as Chinese patients mainly seek medical treatment at public healthcare institutions, and basic medical insurance mainly covers diagnoses and treatments at these institutions. Medical imaging centers can address the problem of long waiting times for diagnosis due to overcapacity in the medical capabilities of higher-ranked hospitals, while also providing services to lower-ranked hospitals to enhance overall medical imaging capabilities and promote the implementation of a tiered diagnosis and treatment system.

The Chinese medical imaging service market grew from 147.4 billion yuan in 2018 to 270.9 billion yuan in 2023, with a compound annual growth rate of 12.9% during that period. It is expected that by 2025 and 2030, China's digital healthcare marketing market will further grow, increasing to 404.6 billion yuan and 661.5 billion yuan respectively.

Source: Frost & Sullivan report

According to 2020 data, tertiary Class A hospitals directly under or supervised by the National Health Commission of China and tertiary hospitals cannot provide high-level medical imaging services. There are only about 3,500 tertiary hospitals in China's healthcare system, accounting for a small proportion of the 36,900 hospitals. The imaging service capabilities of China's primary healthcare system are insufficient, leading to a significant demand. Currently, the resource distribution in China's medical imaging service market is uneven, and the construction of a hierarchical diagnosis and treatment system needs to be promoted to achieve a more balanced resource distribution.

A third-party medical imaging center refers to an independent healthcare institution that uses X-rays or other imaging technologies to examine the human body and issue imaging diagnostic reports. There are typically two business operation models: providing medical imaging services directly to patients and healthcare consumers; or providing medical imaging operation services for hospitals and other healthcare institutions. The latter operation model achieves hospital efficiency and reduces costs through the sharing of equipment, medical professionals, and data.

Since public hospitals in China dominate patient flow, under the second operational model, third-party medical imaging centers usually cooperate with public hospitals within the region. Given that the medical imaging service capabilities of primary healthcare systems in China are relatively poor, there is great market potential for third-party medical imaging institutions to provide services to county-level or lower hospitals and primary healthcare institutions.

China's third-party medical imaging centers started relatively late and have developed for a relatively short period, currently still in an early stage. According to the latest data on the official website of the National Health Commission as of the last practical implementation date, there are only 163 valid third-party medical imaging center licenses in China, owned by about 80 companies. The number of third-party medical imaging centers in China is far less than that in the United States. The market scale of third-party medical imaging in China has grown from 800 million RMB in 2018 to 2.9 billion RMB in 2023, with a compound annual growth rate of 29.0%. It is expected to increase to 186 billion RMB by 2030, with a compound annual growth rate of 30.7% during this period.

Source: Frost & Sullivan report

Currently, the resource distribution of China's medical imaging service market is uneven. Promoting the development of third-party medical imaging centers and the construction of hierarchical diagnosis and treatment systems will help achieve a more balanced resource allocation goal.

Based on the payment expenses of patients in 2023 (including (i) fees paid by patients to third-party medical imaging centers, and (ii) imaging examinations and related diagnostic fees paid by patients to medical imaging service providers operating under operational management and other service agreements), OneVantage ranks first among all third-party medical imaging center operators in China, and second in terms of revenue from imaging center services in 2023. As shown in the table below, along with other ranking information of major participants in this market:

Source: Frost & Sullivan report

China Medical Cloud Imaging Services refer to the storage, sharing, or processing of medical images based on cloud systems. China's medical imaging cloud services have promoted various applications including digital medical cloud imaging storage systems, imaging data platforms, regional imaging diagnosis platforms, and imaging archiving into communication systems.

The market scale of third-party medical cloud imaging services in China has grown from 1.7 billion yuan in 2018 to 5.4 billion yuan in 2023, with a compound annual growth rate of 25.9%. It is expected to increase to 162 billion yuan by 2030.

Source: Frost & Sullivan report

The demand for informatization in medical institutions, the increasing awareness of residents' health management, and changes in consumer behavior are expected to unleash the growth potential of China's medical cloud imaging service market. With the development and application of cloud computing and big data, as well as the implementation of relevant policies, there are higher requirements for the scientific, standardized, and refined operation management of hospitals. Therefore, the market shows a development trend characterized by full-process digitization, intelligence, data-driven services, and empowerment by new technologies for medical imaging services.

In the field of medical imaging and third-party testing services, Frost & Sullivan has served a range of companies including Yipeng Medical, Umeda, Meizhongjiahe, Anke High-tech, Neusoft Healthcare, Yingtong Technology, Feinonuo Technology, Pansent, Aidi Kang, Mire Group, Grail, Kangsheng Global, and Anpik.

Frost & Sullivan, integrating 63 years of global consulting experience, has dedicated 26 years to serving the booming Chinese market with a global perspective, helping clients accelerate their corporate growth and achieve benchmark positions in industry growth, innovation, and leadership. The healthcare industry is one of the core areas of focus for Frost & Sullivan. Over the past 20+ years, the Frost & Sullivan team has provided financing and financial advisory, IPO industry advisory, strategic consulting, management consulting, and other services to hundreds of outstanding domestic and international biopharmaceutical, medical device, healthcare services, and internet healthcare companies. Successful listings include: Shenghe Biotech (2898.HK), Quanxin Biotech (2509.HK), Meizhong Jiahe (2453.HK), WuXi AppTec (2268.HK), Anovance (NASDAQ:ANL), Neusoft Xikang (9686.HK), Youzhiyou (2496.HK), Yiming Angke (1541.HK), Corning Biotech (6990.HK), LaiKai Medicine (2105.HK), Kedil Group (2487.HK), Lvgreen Biotech (2480.HK), Meis Health (2415.HK), PHECR, Zhongjin Medical (NASDAQ:ZJYL), Yisheng Biotech (NASDAQ:YS), Meiliyuan (2373.HK), Kangfeng Biotech (6922.HK), Bao'an Biotech (6955.HK), Suidi (1244.HK), Meihao Medical (1947.HK), Gao Shi Medical (2407.HK), LePuxintai (2291.HK), Jian Shi Technology (9877.HK), Health Yuan (JCARE.SW), LeP Medical (LEPU.SW), Dingdang Health (9886.HK), BAIOSAT (2315.HK), Zhiyun Health (9955.HK), MeinGene (6667.HK), Prenetics (PRE.NASDAQ), Yunkang Group (2325.HK), Ruike Biotech (2179.HK), LeP Biotech (2157.HK), Clear Medical (1406.HK), Baxin An (2185.HK), Yonghe Medical (2279.HK), Kailai Ying (6821.HK), Beihai Kangcheng (1228.HK), Gusheng Tang (2273.HK), Yingpeng Technology (2251.HK), Clover Biotech (2197.HK), Minimally Invasive Robotics (2252.HK), Harmony Kamen (2256.HK), Kunbo Medical (2216.HK), Xianruida (6669.HK), Kangsheng Global (9960.HK), Yimai Tong (2192.HK), Tengsheng BOPY (2137.HK), Canola (2162.HK), Chaopu Ophthalmology (2219.HK), Guichuang Tongqiao (2190.HK), Huihuang Medicine (0013.HK), Koji Pharmaceutical (2171.HK), Zhaoke Ophthalmology (6622.HK), Nature Pharma (UPC.NASDAQ), Saiseng Pharmaceutical (6600.HK), Zhaoyan New Drug (6127.HK), Novogene Health (6606.HK), ADAG.NASDAQ, Beikang Medical (2170.HK), Jianbimiao Miao (2161.HK), Minimally Invasive Xin Tong (2160.HK), Rui Li Medical Beauty (2135.HK), Jiaosisi Pharmaceutical (1167.HK), Hepo Pharma (2142.HK), JD Health (6618.HK), Deqi Pharmaceutical (6996.HK), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), Sino Biologics (2096.HK), Yunding New Energy (1952.HK), Jiahe Biotech (6998.HK), Zai Ding Medicine (9688.HK), Ocular Biotechnology (1477.HK), Yongtai Biotech (6978.HK), Hapu Pharma (9989.HK), Kaidao Pharmaceutical (9939.HK), Peijia Medical (9996.HK), Kangfang Biotech (9926.HK), Nuo Cheng Jianhua (9969.HK), Tianjing Biotech (IMAB.NASDAQ), Kanglong Chemical (3759.HK), China Antibody (3681.HK), Dongyao Pharmaceutical (1875.HK), Yasheng Pharmaceutical (6855.HK), Fuhong Hanlin (2696.HK), Hansoh Pharmaceutical (3692.HK), Mabotech (2181.HK), Fangda Holdings (1521.HK), Via Biotech (1873.HK), CStone Pharmaceuticals (2616.HK), Junshi Biosciences (1877.HK), WuXi AppTec (2359.HK), Xinda Biotech (1801.HK), Hualing Medicine (2552.HK), BeiGene (6160.HK), Galle Biopharmaceuticals (1672.HK), WuXi AppTec (2269.HK), China Resources Medicine (3320.HK), Yacogen Scientific Research Pharmaceutical (2633.HK), Huihuang China Medicine (HCM.NASDAQ), Gencell Biotechnology (1548.HK), BBI Life Sciences (1035.HK), etc. In terms of the number of filings, the Frost & Sullivan healthcare team maintains an absolute leading position in Hong Kong's healthcare IPO market, consistently ranking first in market share from 2018 to 2023.

Since the listing of the first batch of companies on the Sci-tech Innovation Board in July 2019, Frost & Sullivan reports have been widely cited in the prospectuses of leading Sci-tech Innovation Board listed companies in the industry, including: Zhongyan Co., Ltd. (688716.SH), Zhejiang Rongtai (603119.SH), Optoelectronics Technology Group Co., Ltd. (688450.SH), Jinghe Integration (688249.SH), Wuxi Rilian (688531.SH), Maolai Optics (688502.SH), Kangwe Century (688426.SH), Jinchuan Protein (688137.SH), Novogene Biologics (688428.SH), Aopu Medical Biotechnology Co., Ltd. (688293.SH), MicroPort Electrophysiology (688351.SH), Mengke Pharmaceutical (688373.SH), Yifang Biologics (688382.SH), Jicui Pharmaceutical (688046.SH), Haichuang Pharmaceutical (688302.SH), Rongchang Biologics (688331.SH), Rendu Biologics (688193.SH), Shouyao Holdings (688197.SH), Heyuan Biologics (688238.SH), Yaxin Security (688225.SH), Xidi Micro (688173.SH), Mawei Biologics (688062.SH), Yahong Medicine (688176.SH), BeiGene (688235.SH), Jiamicong (688246.SH), Dizhe Medicine (688192.SH), Novogene (688105.SH), Chengda Biologics (688739.SH), Geke Micro (688728.SH), Huaxi Biologics (688363.SH), Junshi Biologics (688180.SH), Zhejiang Cancer Center (688266.SH), BeiGene (688177.SH), Shenzhou Cells (688520.SH), etc., are considered to be one of the most powerful, professional, and influential industry research institutions in the industry. We hope to work with enterprises to gain insights into industry trends, seize development opportunities, jointly promote innovation and upgrading of China's big health industry, and build a healthy future.