Good News on Listing | Frost & Sullivan Assists BenQ Healthcare Group Co., Ltd. to Successfully List on the Hong Kong Stock Exchange (2581.HK)

Mingyi Hospital Group Co., Ltd. (hereinafter referred to as 'Mingyi Hospital') was successfully listed on December 22, 2025, with a global issuance of 67,000,000 shares at an issue price of HK$11.68 per share.

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 communicate 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.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data (statistical data as of September 30, 2025), from January to September 2025, as well as during the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services to 47 (market share 72%), 62 (market share 69%), and 162 (market share 70%) Hong Kong-listed IPOs respectively, ranking first in terms of number. It has a rich accumulation of industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and various related agencies.

• The company is a private for-profit comprehensive hospital group in the Chinese mainland, with brand recognition and influence;

   

• The company has established an integrated large-scale comprehensive service and a strong specialized private medical service platform, continuously attracting talents and creating business synergy;

   

• The company has effective operational capabilities and management models, resulting in stable profitability;

   

• The company is backed by a controlling shareholder, enjoying a high starting point for business development. The synergistic development advantage with shareholders ensures the company's long-term development as an innovative biopharmaceutical enterprise. It possesses a globally leading plant bioreactor technology platform;

   

• The company has a leadership team with professional knowledge and experience.

The largest provider of healthcare services in China is hospitals. According to Frost & Sullivan the data, there were approximately 39,450 hospitals in China in 2024. In addition, in 2024, the revenue of Chinese hospitals reached RMB 5248 billion, accounting for 75.3% of the total revenue of Chinese medical institutions that year.

Traditionally, public hospitals have dominated medical services in China. However, in recent years, the private hospital sector has become a rapidly developing segment of China's medical service industry. Public hospitals are usually owned, managed, and financially supported by the government or public entities, while private hospitals are owned, managed, and funded by individuals, private companies, or private organizations. Private hospitals in China can generally be divided into for-profit and non-profit ones, with for-profit private hospitals accounting for 66.5% of the private hospital market in China in 2024.

In addition, public hospitals are usually open to the public and have the obligation to provide medical services for all people, regardless of their affordability. On the other hand, private hospitals can vary in accessibility, typically catering to the needs of patients seeking high-quality medical care or who have private health insurance. Furthermore, public hospitals usually provide essential drugs and services at subsidized rates, but private hospitals have greater flexibility in service provision and pricing. In terms of service provision, public hospitals generally offer a wide range of medical services to serve more groups, often having more medical resources and experience, while private hospitals typically provide more customized services.

According to Frost & Sullivan data, the revenue of private hospitals increased from RMB 437.9 billion in 2019 to RMB 944.7 billion in 2024, with a compound annual growth rate of 16.6% from 2019 to 2024. It is expected to reach RMB 1,882.7 billion by 2030 and a compound annual growth rate of 14.3% from 2025 to 2030. At the same time, the compound annual growth rate of public hospital revenue from 2019 to 2024 was 6.4%, and it is expected that the compound annual growth rate from 2025 to 2030 will be 7.7%. The following table lists the past and expected revenues of public and private hospitals in China during the indicated period:

Data source: Analysis by Frost & Sullivan

According to Frost & Sullivan's data, the number of private hospitals in China increased by a compound annual rate of 4.3% from 22,424 in 2019 to 27,652 in 2024, and is expected to rise to 32,188 by 2030. The compound annual growth rate from 2025 to 2030 is set at 2.4%. Meanwhile, the number of public hospitals in China decreased from 11,930 in 2019 to 11,798 in 2024, and is expected to drop to 11,728 by 2030. The reduction in public hospitals is mainly due to several public hospitals being restructured into private entities by introducing social capital, in line with the goals set out in the 'Notice on Further Encouraging and Guiding Social Capital to Establish Medical Institutions', aiming to make the distribution of medical institutions more balanced in China.

According to Frost & Sullivan's data, due to the shortage of medical resources in China, only 10.6% or 4,162 out of a total of 39,450 hospitals in 2024 are classified as tertiary hospitals. Tertiary hospitals typically refer to those that provide high-level specialized medical services, cover a wide range of geographical areas, implement advanced teaching methods, and carry out research tasks. Public hospitals have already and are expected to continue to dominate and play a key role among China's tertiary hospitals.

According to Frost & Sullivan's data, for private hospitals in China, tertiary private hospitals will only account for 3.5% of the total number of graded private hospitals in 2024, with most graded private hospitals in China rated as Grade 1. In addition, tertiary hospitals can be further divided into three grades: Grade A, Grade B, and Grade C, among which Grade A tertiary hospitals represent the highest level, excelling in various aspects such as medical equipment and facilities, the ability to provide cross-specialty safety and high-level medical services, research capabilities, and operational efficiency.

Private hospitals in China are owned and operated by private entities. Private hospitals must comply with government regulations and licensing requirements to ensure quality and safety. Compared with public hospitals, private hospitals have more autonomy in decision-making and management. Regarding funding sources, public hospitals mainly rely on government budgets, patient payments, and medical insurance reimbursements, while private hospitals have more diversified financing models, including patient payments, medical insurance payments, investment capital, and charitable donations.

This financial autonomy gives private hospitals greater flexibility in effectively making strategic decisions, allocating resources, investing in specialized medical fields, providing high-quality services, and pricing, thereby meeting market demands. The independence of pricing, combined with the ability to provide specialized medical services and bring excellent experiences to patients, makes private hospitals an ideal choice for individuals seeking personalized and high-quality healthcare services, which helps optimize revenue sources for private hospitals.

●The demand for high-quality medical services has increased

In China, the medical environment is generally severe or complex, resulting in a large number of medical needs not being met. With the development of social economy, people's health awareness has gradually increased. Per capita medical expenditure has continued to grow, from RMB 4,702.7 in 2019 to RMB 6,933.3 in 2024, indicating an improvement in people's health awareness, increased investment in medical services, and growing demand for high-quality medical services. The demand for medical services in China has exceeded the capacity of existing medical institutions, leading to an overload of patients and the inability to provide appropriate treatment for all patients. Private hospitals supplement the capacity of public hospitals by providing specialized treatments and alleviating the pressure on the medical system. As people's demand for more personalized and higher-quality medical services grows, the number of private hospitals has increased significantly from 22,424 in 2019 to 27,652 in 2024. This not only improves the treatment outcomes for patients but also creates opportunities for the growth and development of private hospitals.

●Government policies favorable to private hospitals

The development of private hospitals has been listed as a priority in the government work report issued by the Chinese government and the National Health Plan for the 14th Five-Year Plan period. The government has focused on establishing new private hospitals in different regions. In addition, the government is also striving to create a favorable policy environment for private hospitals (including tax incentives and other supportive measures). This policy has greatly accelerated the development of private healthcare. Specifically, the "Opinions on Promoting the Sustainable, Healthy, and Standardized Development of Private Healthcare" issued by departments such as the National Health Commission and the National Development and Reform Commission propose to control the number and scale of public hospitals and encourage the development of private healthcare (i.e., non-governmental institutions providing medical services). The opinions also point out that for-profit private healthcare can enjoy tax incentives for small and micro enterprises, and private healthcare can apply to be recognized as high-tech enterprises and enjoy corresponding tax incentives. According to relevant tax policies, "small and micro enterprises" can enjoy tax reductions under the following circumstances: a first-year taxable income of RMB 1 million can enjoy a 75% reduction; income between RMB 1 million and RMB 3 million can enjoy a 50% reduction at the applicable corporate income tax rate of 20%; and high-tech enterprises can enjoy a preferential tax rate of 15%. According to these opinions, companies as for-profit private healthcare can apply for tax incentives and tax reductions according to relevant rules and regulations.

●Improper allocation of medical resources

Large hospitals in China are concentrated in the current urban districts of major cities. However, with the process of urbanization, more hospitals need to be established in emerging urban areas and suburbs (such as Guigang City in Guangxi) to meet the medical needs of local residents. The increased demand for medical services in these areas creates opportunities for the development of private hospitals.

●Pursue standardized and professional development

As private hospitals in China strive for professional fields, specialized knowledge, patient satisfaction, and technological advancement, they are seeking to follow international standards and introduce global experiences. To establish internationally recognized hospitals, the industry focuses on providing higher-quality healthcare professionals, clinical expertise, and services. To enhance government recognition and gain competitive advantages, private hospitals in China are willing to adopt global experiences, follow international standards, and actively establish specialized departments, equipped with discipline leaders or experts from various fields. With the development of the Chinese hospital market, private hospitals providing professional medical services are more likely to achieve sustainable growth.

●ConstructRegional Medical Consortium

With the continuous growth of China's population and rapid aging, the private hospital market is developing towards the construction of regional medical consortia, which integrate collaborative networks with different care levels across geographical regions. Firstly, referral networks are established through cooperation between general hospitals and primary healthcare institutions as well as other community healthcare facilities. These consortia enable patients to seamlessly transfer between different healthcare institutions based on the severity of their illness. Secondly, in response to the rapid aging of China's population, healthcare services are integrated with elderly care services to provide urgent treatment, rehabilitation, and long-term care for the elderly, offering them comprehensive and continuous care.

The East China region refers to the geographical area including the eastern coastal regions of China. This region includes provinces such as Anhui, Fujian, Jiangsu, Shandong, Zhejiang, and Jiangxi, as well as Shanghai, which was officially demarcated by the Chinese central government for economic purposes and is widely accepted. The East China region includes economically developed areas with relatively high levels of medical infrastructure and resources, allowing access to advanced medical technology.

Driven by the growing demand for high-quality and customized medical services, the healthcare market in East China has been rapidly expanding. The revenue of public hospitals in East China increased from RMB 894.8 billion in 2019 to RMB 1,267.5 billion in 2024, with a compound annual growth rate of 7.2% from 2019 to 2024. It is expected to reach RMB 1,994.7 billion by 2030 and a compound annual growth rate of 7.6% from 2025 to 2030. At the same time, the revenue of private hospitals in East China increased from RMB 157.6 billion in 2019 to RMB 268.6 billion in 2024, with a compound annual growth rate of 11.3% from 2019 to 2024. It is expected to reach RMB 559.9 billion by 2030 and a compound annual growth rate of 12.6% from 2025 to 2030.