Good News on Listing | Frost & Sullivan Assists Zhuozheng Medical Holdings Limited to Successfully List in Hong Kong (2677.HK)

Zhuo Zheng Medical Holdings Limited (hereinafter referred to as 'Zhuo Zheng Medical') successfully listed on February 6, 2026. The company plans to issue 4.75 million H shares, of which 90% will be sold internationally and 10% in Hong Kong. The maximum offering price per share is HK$66.60, with a maximum net raise of HK$21.9 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 writing of 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 providing assistance to the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data, from January to December 2025, and over the past 36 months, Frost & Sullivan provided listing industry advisory services for 83 (accounting for 73% of the market share) and 180 (accounting for 71% of the market share) Hong Kong IPOs respectively, ranking first in terms of number. It has rich industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and various related organizations.

• Ranked as the third-largest private mid-to-high-end comprehensive healthcare institution in China based on 2024 revenue, with a high brand awareness;

   

• The family medical model integrates physical and online healthcare services, enabling the company to build a growing patient base;

   

• A high-quality and stable medical team, with a sound talent development framework;

   

• A centralized, standardized, and digitalized management system, along with the early adoption of artificial intelligence technology, ensures service quality, operational efficiency, and scalability;

   

• A stable and dedicated senior management team with diverse industry experience.

According to the Frost & Sullivan report, the company:

• Ranked third among all private mid-to-high-end comprehensive healthcare institutions in China, based on total revenue for 2024;

   

• In terms of the number of cities covered in China as of December 31, 2024, the company ranks first among all private mid-to-high-end comprehensive medical service institutions in China;

   

• In terms of the number of patient visits by paying patients in 2024, the company ranks second among all private mid- to high-end comprehensive healthcare institutions in China.

Medical services refer to the services provided by medical service institutions, including examinations, treatments, rehabilitation, and services related to preventive health care, childbirth, and family planning. It also includes the provision of drugs, medical consumables, ambulances, hospital accommodation, and catering related to these services. The development of the Chinese economy and the enhancement of purchasing power among Chinese residents have driven a surge in demand for personalized and efficient medical services, thereby promoting the rapid growth of China's private medical service market. The revenue of private medical service institutions in China increased from RMB 676 billion in 2020 to RMB 1292.2 billion in 2024, with a compound annual growth rate of 17.6%. It is expected that from 2024 to 2029, the revenue will further grow at a compound annual rate of 11.3%, reaching RMB 2206.1 billion by 2029.

Data sources: interviews with experts from the National Health Commission, Frost & Sullivan, and leading market participants, as well as Frost & Sullivan analysis.

●Per capita disposable income has increased

China's per capita disposable annual income has steadily increased from RMB 32,189 in 2020 to RMB 41,314 in 2024, with a compound annual growth rate of 6.4%. It is expected that from 2024 to 2029, the growth will further accelerate at a compound annual rate of 5.4%, reaching RMB 53,740 by 2029. The increase in per capita disposable annual income has driven and is expected to continue driving the growth of China's population purchasing power, thereby further increasing the demand for medical services.

● Per capita medical expenditure continues to increase

Changes in population structure, the rise in chronic disease prevalence, and technological progress all contribute to enhancing people's awareness of health and healthcare management. The outbreak of COVID-19 has highlighted the importance of preventive healthcare, further accelerating this trend. As a result, China's per capita medical expenditure increased from RMB 5,112 in 2020 to RMB 6,626 in 2024, with a compound annual growth rate of 6.7%. It is expected that from 2024 to 2029, it will further grow at a compound annual rate of 5.7%.

● Population aging

According to data from the National Health Commission, by the end of 2024, China's elderly population aged 60 and above reached 310.3 million, accounting for 22.0% of the total population. It is estimated that by 2035, this number will exceed 400 million, accounting for more than 30% of the total population. With the continuous increase in the elderly population, China's severe aging trend is expected to generate huge demand for health products and services, especially as the elderly usually have greater needs for medication and disease management.

Mid-to-high-end medical services refer to comprehensive customized services for the affluent population, emphasizing care and experience for patients. The affluent population refers to those with an annual disposable income exceeding 200,000 RMB per capita. This group is characterized by higher disposable income, stronger purchasing power, lower sensitivity to prices, and a greater demand for additional services such as disease screening, prevention, and health management, which are different from the general public. The preferences and needs of the affluent population are exactly what mid-to-high-end medical services can meet: (i) They prefer mature and well-known medical service institutions that have professional doctors capable of providing long-term, personalized health management and treatment plans; (ii) They have higher requirements for convenience, efficiency, and privacy; and (iii) In addition to public medical insurance, they also enjoy commercial insurance plans, which provide greater flexibility in paying for medical expenses.

With the growth in the number of private mid-to-high-end medical service institutions, the total revenue of these institutions increased from RMB 193 billion in 2020 to RMB 4263 billion in 2024, with a compound annual growth rate of 21.9%. It is expected that from 2024 to 2029, the revenue will further grow at a compound annual rate of 14.3%, reaching RMB 8314 billion by 2029.

Data sources: interviews with experts from the National Health Commission, Frost & Sullivan, and leading market participants, as well as Frost & Sullivan analysis.

● The number of wealthy people in the general population is constantly increasing

With the stable growth of the economy and the continuous increase in per capita disposable income, the number of wealthy individuals continues to rise. From 2020 to 2024, the proportion of wealthy individuals in China increased from 7.4% to 8.7%. The increase in per capita disposable income and the expansion of the wealthy population have enabled more and more patients to afford private mid-to-high-end medical services. This upward trend has stimulated greater demand for private mid-to-high-end medical services, bringing huge development opportunities to industry participants.

●Development of commercial medical insurance

China's commercial medical insurance compensation expenditure increased from RMB 292 billion in 2020 to RMB 494 billion in 2024, with a compound annual growth rate of 14.0%. The proportion of commercial medical insurance claims expenditure in China's total direct healthcare expenditure (i.e., the total social and personal healthcare expenditures) also rose from 6.7% in 2020 to 7.1% in 2024. Such growth reflects the increasing popularity of commercial medical insurance in China. Commercial insurance providers have introduced a variety of new insurance products to expand coverage and effectively improve the affordability of healthcare services for Chinese patients. As a result, more and more patients can enjoy private mid-to-high-end medical services, thereby promoting the development of China's private mid-to-high-end medical service market.

●Large capital inflows

The Chinese government encourages social capital to participate in the medical service market, attracting strong support from the capital market and becoming a major driving force for China's private mid-to-high-end medical service market. The influx of capital has enabled private mid-to-high-end medical service institutions to adopt advanced medical technologies and equipment, improving their diagnostic and treatment capabilities as well as overall service quality. In addition, the large amount of capital flow has promoted mergers and acquisitions among private mid-to-high-end medical service institutions, driving the expansion of leading market enterprises.

● Diversified and personalized services

Private mid-to-high-end medical service institutions are committed to providing more diverse and personalized services to meet the ever-changing needs and preferences of patients. These services include not only disease prevention, diagnosis, and treatment but also personalized services such as health consultation, health management, and health education. These services adhere to higher standards in terms of medical technology, facilities, and services, and are usually provided by experienced professionals. By offering diversified and personalized services that prioritize patient needs and experiences, private mid-to-high-end medical service institutions can effectively retain and attract patients with high expectations for their services.

● Expand business through chain operation

First-tier and new first-tier cities are experiencing rapid economic development with high population density, leading to an increasing demand for high-quality medical services. The future growth point for private mid-to-high-end medical service institutions lies in strategic expansion through franchising operations. Franchising operations standardize brand images, service processes, and operational and management models, which help reduce costs and improve profitability. In addition, franchising can also achieve the sharing of high-quality medical resources, thereby improving service quality and patient experience. Franchising has enabled private mid-to-high-end medical service institutions to achieve rapid business expansion and occupy a larger market share in these fields.

● Develop online medical service platforms

In recent years, the digital healthcare service market in China has achieved significant growth, alleviating problems such as uneven distribution of medical resources, low efficiency of healthcare services, and difficulties in chronic disease management. Private mid-to-high-end healthcare institutions, especially industry leaders, are actively investing in developing online healthcare service platforms. This strategic move aims to expand patient access to healthcare nationwide, simplify service processes, improve operational efficiency, and promote the coordinated development of physical and online healthcare services.

The private mid-to-high-end comprehensive healthcare service market in China is highly fragmented. The company is one of the main participants in this market. According to Frost & Sullivan's data, among all private mid-to-high-end comprehensive healthcare institutions in China, the company ranks third in terms of total revenue for 2024.

Data source: Interviews with experts from Frost & Sullivan and leading market participants, Frost & Sullivan analysis