CLYB Holdings Limited (hereinafter referred to as 'CLYB') successfully listed on February 18, 2022, with a global issuance of 136 million shares at a price of HK$1.60 per share, raising approximately HK$17.7 million.
During the Hong Kong listing process, 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 relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important sections), facilitating communication with the Hong Kong Stock Exchange and investors, helping investors quickly understand the market ecosystem and competitive landscape, and assisting the company in responding to various questions from the Hong Kong Stock Exchange regarding the industry.
Hong Kong Eye Care Medical Service Market
Hong Kong's ophthalmic medical services include refractive treatment services and other treatment services. Among them, refractive treatment services include cycloplegic radial keratotomy (PRK), intraocular lens replacement (IOL) and implantable contact lenses.
1. Flexion-rotation cyclophotocoagulation laser surgery:Laser reshaping of the front surface (cornea) of the eye achieves visual focusing by altering the eye's refractive power. The laser surgeries used can be classified into photorefractive keratectomy (PRK)/Laser-Assisted in Situ Keratomileusis (LASIK), excimer laser in situ keratomileusis (LASIK), and small incision lenticule extraction with femtosecond laser (SMILE). Laser surgeries for the cornea are targeted at young individuals with mild to moderate myopia (up to -10.00D).
2. Intraocular lens replacement:An intraocular lens is a medical device implanted into the eye to replace the natural lens that was removed during cataract surgery. Intraocular lenses are also used for phakic intraocular lens replacement (a type of vision correction surgery). Intraocular lenses can be further divided into single-focus and multifocal intraocular lenses.
3. Implantable contact lens implantation:Custom intraocular lenses are placed behind the iris and in front of the natural lens to correct myopia, hyperopia, and astigmatism, similar to contact lenses. Therefore, these lenses are called 'implantable contact lenses' or 'implantable intraocular lenses.' Implantable contact lenses are suitable for young individuals with severe myopia because they can correct up to -20.00D of refractive power. For those who are not suitable for phakic excimer laser surgery due to severe myopia or who do not wish to permanently remove corneal tissue, implantable contact lenses are an option that can provide excellent vision through minimally invasive and reversible surgery without causing dry eye syndrome.
According to Frost & Sullivan's analysis, the total market value of ophthalmic medical services in Hong Kong in 2020 was about HK$8.46 billion. The market size is expected to grow at a compound annual rate of 5.7% from 2021 to 2025, reaching about HK$11.15 billion by 2025. Due to the longer waiting times for public sector medical services and the increased affordability of private ophthalmic services among Hong Kong residents, the market size of the private ophthalmic service market is estimated to reach HK$5.9 billion by 2025, with a compound annual growth rate of 6.4% from 2021 to 2025.
Public market participants in the ophthalmic service industry receive substantial funding from the Hong Kong government to provide basic eye care and treatment for eye diseases such as myopia, cataracts, and other non-refractive eye conditions. Since public institutions are non-profit entities, refractive treatment services such as LASIK and SMILE are only provided by private market participants. Conversely, due to the high demand for refractive treatment services among Hong Kong citizens, these services account for a significant proportion of the profits of private market participants. Public and private market participants each focus on different service areas, with refractive treatment services being dominated by the private market.
Market scale details of Hong Kong's ophthalmic medical service market
2016 to 2025 (estimated)
Source: Frost & Sullivan report
Hong Kong SMILE Surgery Market Analysis
SMILE is the most advanced laser vision correction surgery, which has been commercially available since the launch of ReLEx SMILE in 2011. Due to its significantly improved clinical efficacy compared to LASIK, such as fewer dry eye symptoms and smaller incisions, the market scale for SMILE surgery increased sharply to about HK$260 million in 2020 due to a significant increase in patients. Affected by social unrest in 2019 and the COVID-19 pandemic in 2020, the market demand for SMILE surgery was temporarily impacted, resulting in a slowdown in market growth from 2019 to 2020. Specifically, the lockdown and social distancing measures implemented by the Hong Kong government affected patients' visits to medical institutions. In addition, due to travel restrictions on tourists seeking ophthalmic services (especially surgical procedures) and the postponement of scheduled non-emergency ophthalmic surgeries, the number of patients visiting private hospitals decreased.
On the other hand, the impact of the COVID-19 pandemic on Hong Kong's ophthalmic centers has been minimal, as clinic operations and patient visits have not been significantly constrained or affected. Given (i) there are no signs that social unrest in Hong Kong will continue, and (ii) compared to the first half of 2020, as the COVID-19 pandemic has eased and social and economic activities have gradually normalized, the above evidence demonstrates that the overall market demand for ophthalmic medical services in Hong Kong has started to recover since the second half of 2020. During the forecast period, there are no foreseeable adverse effects on the growth of the Hong Kong ophthalmic medical services market. In the next five years, with increased patient education and awareness, the market is expected to further grow to about HK$1 billion by 2025.
Market size of SMILE services in Hong Kong's private healthcare institutions
2016 to 2025 (estimated)
Source: Frost & Sullivan report
Market drivers for private ophthalmic healthcare services in Hong Kong
1. Population aging and rising prevalence of eye diseasesThe population of Hong Kong is rapidly aging at an unprecedented level. According to the Census and Statistics Department of the Hong Kong Government, the population aged 65 and above is about 1.38 million, accounting for 18.4% of the total population in 2020, and is expected to grow at a compound annual growth rate of 5.1% from 2021 to 2025. The population structure is shifting towards older residents, increasing the prevalence of eye diseases related to aging (including refractive errors, cataracts, and macular degeneration), which has led to an increasing demand for ophthalmic services in Hong Kong, providing huge growth opportunities for the private ophthalmic service industry in the city. In addition, among the younger generation, the prevalence of eye diseases (especially myopia) has also increased.
2. Technological Innovation and ProgressWith the development of technological innovation, more advanced surgical plans are available for treating eye problems, providing impetus for market growth. Emerging technologies such as SMILE only make very small incisions into the corneal tissue during refractive surgery, offering patients a lower risk and faster recovery than traditional techniques such as LASIK and LASEK. Improvements in the materials used for intraocular lens replacement have provided lenses with multifocal or hydrophobic properties, which can more effectively treat presbyopia and cataracts.
3. Increased affordability -As the level of disposable personal income continues to rise, people with higher purchasing power are more willing to spend on eye health, thereby stimulating the growth of the ophthalmic medical service industry in Hong Kong. In addition, Hong Kong people place great importance on health and are willing to purchase medical insurance, making private ophthalmic services more affordable. Moreover, the government has implemented a senior citizen medical voucher scheme aimed at subsidizing the use of private basic medical services by seniors. As the eligibility for the senior citizen medical voucher scheme and the amount of vouchers continue to improve, the public in Hong Kong is increasingly inclined to choose private ophthalmic services.
4. Public sector ophthalmology services have a long waiting time --Due to the scarcity of public medical resources, waiting times for healthcare services continue to increase. For example, in several regions, the waiting time for cataract surgery has exceeded 20 months. To avoid long waiting times, patients seeking real-time medical care and a convenient and user-friendly medical environment are increasingly accepting private sectors.
The competitive landscape of the private ophthalmic medical service market in Hong Kong
The private ophthalmic medical service market is composed of market participants from different backgrounds, including ophthalmic centers, private hospitals, general medical centers, and independent ophthalmologists practicing individually. In 2020, ophthalmic centers and private hospitals together accounted for about 68.2% of the market share in providing ophthalmic medical services in Hong Kong. Generally, refractive treatment is mainly undertaken by ophthalmic centers and private hospitals in Hong Kong, while ophthalmologists at private general medical centers are more concentrated in providing other treatment services.
Market share of private ophthalmic service providers in Hong Kong
(revenue-based)
Source: Frost & Sullivan report
In recent years, the competition in the private ophthalmic medical service market in Hong Kong has intensified, attributed to other market participants adopting more competitive pricing and marketing strategies. For example, during the COVID-19 outbreak in 2020, the SMILE surgery prices at Sime Medical Group Limited and Hong Kong Laser Vision Centre were about 10% to 20% lower than those at Clear Vision Medical. In addition, Sime Medical Group Limited and other market participants have further promoted their services through double-dealer discounts, one-year unlimited check-ups, and referral discounts.
According to a Frost & Sullivan report, Clear Medical ranked fourth among all private medical institutions in Hong Kong in terms of earnings from ophthalmic medical services in 2020, with a market share of 5.0%. In addition, Clear Medical is one of the first private medical institutions in Hong Kong to introduce the advanced VisuMax femtosecond laser system for SMILE surgeries. In 2020, Clear Medical ranked first among private ophthalmic service providers in Hong Kong in terms of SMILE surgery earnings, with a market share of 38.0%.
Top 5 Private Ophthalmic Services in Hong Kong in 2020
(Summarized by Smile's surgical revenue and market share)
Data source: Annual reports and websites of the aforementioned companies, Frost & Sullivan reports
Frost & Sullivan integrates 61 years of global consulting experience, dedicated to serving the booming Chinese market for 24 years. With a global perspective, it demonstrates how clients accelerate their corporate growth, achieving 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 seventeen years, the Frost & Sullivan healthcare team has provided financing and financial advisory services, IPO industry advice, strategic consulting, and management consulting for hundreds of outstanding domestic and international biopharmaceuticals, medical devices, healthcare services, and internet healthcare companies. Successful listings include: Bexcellence (2185.HK), Yonghe Medical (2279.HK), Kailiang (6821.HK), Beihai Kangcheng (1228.HK), Gushengtang (2273.HK), Yingpeng Technology (2251.HK), Clover Biotech (2197.HK), Minimally Invasive Robotics (2252.HK), Huiyuan Kaiman (2256.HK), Kunbo Medical (2216.HK), Xianruida (6669.HK), Kangsheng Global (9960.HK), Yimaitong (2192.HK), Tengsheng Bo Yao (2137.HK), CanSino (2162.HK), Chaoyu Ophthalmology (2219.HK), Guichuang Tongqiao (2190.HK), Huihuang Medicine (0013.HK), Kexier Pharmaceutical (2171.HK), Zhaoke Ophthalmology (6622.HK), Nature Pharmaceuticals (UPC.NASDAQ), Saiseng Pharmaceutical (6600.HK), Zhaoyan New Drugs (6127.HK), Novogene Health (6606.HK), Tianyan Pharmaceuticals (ADAG.NASDAQ), Beikang Medical (2170.HK), Jianbimiao Miao (2161.HK), Minimally Invasive Heart Link (2160.HK), Ruili Medical Beauty (2135.HK), Jiake Pharmaceutical (1167.HK), HepB Biopharmaceuticals (2142.HK), JD Health (6618.HK), Deqi Pharmaceutical (6996.HK), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), Sonovent Pharmaceuticals (2096.HK), Yunding Newray (1952.HK), Jiahe Biotech (6998.HK), ZaiDi Pharmaceuticals (9688.HK), Ocular Therapeutics (1477.HK), Yongtai Biotech (6978.HK), Haipure Pharmaceuticals (9989.HK), Kechuang Pharmaceutical (9939.HK), Peijia Medical (9996.HK), Kangfang Biotech (9926.HK), Nuocheng Jianhua (9969.HK), IMAB.NASDAQ, Kanglong Chemical (3759.HK), China Antibody (3681.HK), Dongyao Pharmaceutical (1875.HK), Yasheng Medicine (6855.HK), Fuhong Hanlin (2696.HK), Hansoh Pharmaceutical (3692.HK), Mabtech Pharmaceuticals (2181.HK), Fangda Holdings (1521.HK), ViaBio (1873.HK), CStone Pharmaceuticals (2616.HK), Junshi Biosciences (1877.HK), WuXi AppTec (2359.HK), Innovent Biologics (1801.HK), Hualing Medicine (2552.HK), BeiGene (6160.HK), Gilead Sciences (1672.HK), WuXi Biologics (2269.HK), China Resources Medicine (3320.HK), Jacobus Pharmaceutica (2633.HK), Huihuang China Medicine (HCM.NASDAQ), 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, continuously occupying more than 90% of the market share from 2018 to 2021.
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: AsiaInfo Security (688225), Xidi Microelectronics (688173), Myriad Biosciences (688062), Yarong Medicine (688176.SH), BeiGene (688235.SH), Jiameng Medical (688246.SH), Dizhe Medicine (688192.SH), Novogene (688105.SH), Chengda Biology (688739.SH), Geke Microelectronics (688728.SH), Huaxi Biotechnology (688363.SH), Junshi Biosciences (688180.SH), Zhejiang Genomics & Biotechnology Co., Ltd. (688266.SH), BeiGene (688177.SH), Shenzhou Cells (688520.SH), and others. They are considered the most powerful, professional, and influential industry research institutions in the sector. We hope to work with enterprises to understand industry trends, seize development opportunities, jointly promote innovation and upgrading of China's healthcare industry, and build a healthy future.
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