Gelonghui July 1 丨 Recently, Beijing Tongrentang Healthcare Investment Co., Ltd., a leading domestic traditional Chinese medicine group, submitted a listing application to the Hong Kong Stock Exchange. The sole sponsor was CICC.

The company is a leading traditional Chinese medicine medical group. It has its own and managed medical institutions according to the three levels of chain hospitals, primary chain medical institutions, and internet hospitals. Combining “medicine” and “nursing”, the company provides modern and customized traditional Chinese medicine medical services, covering all scenarios with standardized service procedures in one stop, using superior specialties, and using a combination of traditional Chinese medicine and non-drug treatment methods to provide customers with the most suitable solutions. As of the last practical date, the company has established a hierarchical diagnosis and treatment service network, including 11 offline medical institutions and an internet hospital, as well as 9 offline managed medical institutions. Through an offline and offline integrated service network, the company reaches and serves customers all over the country. Relying on the long-standing “Tong Ren Tang” brand, the company is the largest traditional Chinese medicine group in the medical service industry of non-public traditional Chinese medicine hospitals in China according to the 2022 total number of outpatient visits and outpatient medical service revenue rankings of the company's own traditional Chinese medicine hospitals as of the last actual practical date.

During the track record period, the company's medical service network continued to expand. In 2021, 2022 and 2023, the total number of visits to medical institutions within the company's network was 1.4 million, 1.5 million and 1.9 million, respectively. In order to better serve customers and increase their loyalty, the company has also implemented an all-inclusive membership program in the company's medical service network to provide members with various convenient and preferential services upon registration. This membership program also helps the company expand its customer base in the local community. The company's strategy to attract and retain members has been effective. The cumulative number of members increased from 219,338 as of December 31, 2021 to 530,691 as of December 31, 2023, with a compound annual growth rate of 55.6%.

The company's revenue increased from RMB 470.1 million for the year ended 31 December 2021 to RMB 895 million for the year ended 31 December 2023, with a compound annual growth rate of 38.0%; the company's gross profit increased sharply from RMB 79.2 million for the year ended 31 December 2021 to RMB 193.4 million for the year ended 31 December 2023, with a compound annual growth rate of 56.2%.

From December 31, 2023 to March 31, 2024, the company's medical service network continued to expand, reflecting the company's ability to improve services and its efforts to serve customers on a wider range. As a result, in the first three months of 2024, the number of visits to the company's medical service network increased compared to the same period in 2023.

The capital raised will be used to expand the company's medical service network; enhance the company's medical service capabilities; repay a number of outstanding bank loans; working capital and other general corporate purposes.