上市捷报丨沙利文助力瑞尔集团有限公司成功赴港上市（06639.HK）

Rui'er Group Co., Ltd. (hereinafter referred to as "Rui'er Group") was officially listed on March 22, 2022, with a global issuance of 46,527,500 shares at an issue price of HK$14.62 per share.

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

Industry Overview of China's Consumer Healthcare Service Market

The growth of disposable income and increased health awareness have prompted the healthcare market to transform from a disease-driven market (i.e., treating those who are already sick) to a health-driven market (i.e., providing healthcare services to actively improve the health level of Chinese consumers). The total market size of consumer healthcare services in China expanded from RMB 319 billion in 2015 to RMB 883 billion in 2020, with a compound annual growth rate of 22.6%. From 2021 to 2025, it is expected to accelerate at a compound annual growth rate of 22.9%, reaching RMB 2393 billion by the end of 2025.

Market Size of Consumer Healthcare Services in China

From 2015 to 2025 (estimated)

Source: Frost & Sullivan Report

With more advanced facilities, a wider range of medical treatments, and emphasis on patient experience, private healthcare providers have increased their attractiveness to Chinese consumers. Given the changing consumer preferences and the broad benefits brought about by the growing consumer healthcare service industry, the Chinese government has promulgated a series of policies favorable to private healthcare providers, promoting increased private investment in the private sector. With increased capital investment in this industry, consumer healthcare service providers can further enhance patient experience.

Industry Overview of China's Oral Healthcare Service Market

Before the 1990s, China's oral healthcare service market was dominated by public medical institutions. However, the growing demand for oral healthcare services has exceeded the capacity of existing public medical institutions. This has led to an increase in the number of private medical institutions and the market size of the private oral healthcare service sector. Since the 1990s, private oral healthcare service providers have played an important role in raising public awareness of oral health and promoting consumer demand for oral healthcare services. The number of dental clinics in many regions of China has grown rapidly. As larger private oral healthcare service providers reach a sufficient scale, the chain operation model has been applied to achieve broader geographical coverage.

In recent years, population aging and increased public awareness of oral health have led to a continuous growth in China's demand for oral healthcare services. With increased citizen healthcare spending and improved medical insurance services, the market for oral healthcare services in China continues to expand. The market size of oral healthcare services in China increased from RMB 757 billion in 2015 to RMB 1199 billion in 2020, with a compound annual growth rate of 9.6%. Although the market size decreased slightly in 2020 due to the impact of COVID-19, it is expected that the market size will continue to grow at a compound annual growth rate of 19.9% during the forecast period, reaching RMB 2998 billion by 2025. Growth is expected to concentrate in the private sector, with the market size expected to reach RMB 2414 billion by 2025.

Market size of oral healthcare service market, divided by public and private sectors

From 2015 to 2025 (estimated)

Source: Frost & Sullivan Report

For the Chinese market, private service providers operate more dental institutions. This is because the private sector is mainly composed of dental clinics, which have lower operational, regulatory, and capital requirements, thus covering a wider geographical area. As branches of dental clinics, private dental clinics are geographically widely distributed, using various business models to cater to different market positions. In addition to general oral diseases, private dental clinics also provide cosmetic and chronic disease care programs, pre-treatment consultations, and other personalized customer services. The public sector mainly includes dental hospitals (mainly providing comprehensive and diverse oral treatments to customers in first- and second-tier cities) and general hospitals with an oral department (usually located in urban and rural areas that meet the general oral treatment needs of the general population). The number of dental institutions has been growing, increasing from 64,100 in 2015 to 87,700 in 2020, with a compound annual growth rate of 6.5%. It is expected that the number of dental institutions will reach 144,500 in 2025, with a compound annual growth rate of 10.4%. In particular, private dental clinics accounted for 51.9% of the total market size of China's oral healthcare service market in 2020, while dental hospitals and general hospitals with an oral department combined accounted for 48.1% of the total market share.

The market size of private oral healthcare services increased from RMB 433 billion in 2015 to RMB 831 billion in 2020, with a compound annual growth rate of 13.9%, and is expected to reach RMB 2414 billion by 2025, with a compound annual growth rate of 23.3% during the forecast period. In addition, the number of private oral healthcare service providers in China increased from 58,000 in 2015 to 79,800 in 2020, with a compound annual growth rate of 6.6%, and is expected to reach 133,000 by 2025, with a compound annual growth rate of 10.6% during the forecast period.

Frost & Sullivan has rich research experience in the consumer healthcare industry and has assisted well-known enterprises in successfully listing on the capital market. Successful listing cases include: Yonghe Medical (2279.HK), Fosun Tong (2273.HK), Xianruida (6669.HK), Kangsheng Global (9960.HK), Yimaitong (2192.HK), Chaopu Ophthalmology (2219.HK), Novogene Health (6606.HK), Xintong Medical (2160.HK), Rui Li Medical Beauty (2135.HK), Hongli Medical (9906.HK), Ocular Biotech (1477.HK), Haya (6078.HK), Fosun Genomics (GTH.NASDAQ), Peijia Medical (9996.HK), Yimai International (AIH.NASDAQ), Desivij (1846.HK), Huajian Medical (1931.HK), Jinxin Reproductive (1951.HK), New Oxygen Technology (SY.NASDAQ), Liangqing Holdings (8603.HK), Ping An Good Doctor (1833.HK), Xima Ophthalmology (3309.HK), Aikang Medical (1789.HK), Honghe Ren'ai (3869.HK), New Century Medical (1518.HK), Zhuojia Holdings (8358.HK), Kanghua Medical (3689.HK), Rui Ci Medical (1526.HK), Yisi Medical (2138.HK), United Medical (0722.HK), Kangning Hospital (2120.HK), Global Medical (2666.HK), Heme Medical (1509.HK), Aikang Guobin (KANG.NASDAQ), Taihe Cheng Medical (CCM.NYSE), Phoenix Medical (1515.HK), etc.

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