About JXR Company

The Group is a leading supplier of ARS in China and the US. With the Group's leading position in the existing markets in China and the US, the Group has a unique advantage to seize the unmet needs of ARS patients in China and the US and the growth opportunities in markets with potential for growth. The Group is committed to providing patients with personalized solutions to fulfill their dream of becoming parents. The Group has established competitive advantages in brand, technology, medical teams and management in markets with significant barriers to entry. All hospitals established within the Group's network are recognized as first-class in their respective regional markets (including but not limited to Sichuan Province, Guangdong Province, Yunnan Province and the Western US), which helps the Group to take a leading position in the ARS market in China and the US. In 2021, the Group acquired Sichuan Jinxin Xinan Hospital (Jingxiu Hospital), Hong Kong Fertility and Health Center (brand name: Thanksgiving Medical Center) and Hong Kong Assisted Reproduction Center to expand its footprint in Sichuan Province and the Greater Bay Area, and expand its scope of services to provide services throughout the childbearing cycle, including pregnancy preparation, IVF, antenatal, delivery and post-natal services. The Group acquired a new property in February 2022. It will be officially put into operation in the first half of 2025 for use by Shenzhen Zhongshan Hospital, with a view to seizing the expected growth and growing demand for ARS and expanding capacity in Shenzhen and the Greater Bay Area by improving space and environmental factors and expanding VIP services to meet the diverse needs of patients. The Group has also completed the acquisition of controlling interests in Jiuzhou Hospital and Wanjia Hospital, thereby further expanding the company's market share and influence in southwest China. At the end of 2022, the Group underwent internal restructuring to enable Sichuan Jinxin Xinan Hospital (Jingxiu Campus) to further expand its scope of services and provide medical services involving molecular genetic services, that is, cutting-edge technology for prenatal testing, in accordance with applicable Chinese law. In April 2023, Chengdu Xinan Clinic and Sichuan Jinxin Xinan Hospital (Jingxiu Campus) merged their ARS related medical license to Sichuan Jinxin Xinan Hospital. With excellent medical quality and service experience, they have established an excellent reputation and enhanced market influence in the ARS, obstetrics and gynecology business fields. We anticipate that this initiative will promote synergy between the two hospitals and further strengthen the Group's competitiveness and reputation. As part of our development strategy, HRC Medical is seeking to expand through doctor recruitment and self-built clinics. In the first half of 2024, HRCMedical's doctor recruitment results were remarkable; at least 5 new doctors will join HRC Medical this year. Through cooperation with the University of Southern California Keck College, HRC Management collaborates to train IVF specialists. Every year, at least 3 doctors receive IVF specialist training, thereby providing HRCMedical with a reserve of doctors. In November 2023, we established a strategic partnership with Warburg Pincus and became one of its limited partners. We expect to use the fund's advantages to increase the breadth and depth of the company's search for acquisition opportunities. We believe that strategic partnership relationships complement the Company's strategic layout and support the Group's M&A investment strategy. Furthermore, in July 2024, we established a strategic partnership with PT Morula Indonesia (“Morula”) to enter the Southeast Asian IVF market. Morula was founded in 1997 and is one of the largest assisted reproductive health service groups in Indonesia. Currently, it has 10 IVF clinics across Indonesia. Morula belongs to PT Bundamedik Tbk (“Bundamedik”). Bundamedik was founded in 1973 and successfully listed on the Indonesia Stock Exchange in 2021. The investment initiated cooperation between two major players in their respective fields, namely Jinxin Fertility in China and the US, and Morula in Indonesia to leverage the expertise and advantages of both parties. The Group anticipates that the penetration rate and market size of assisted reproduction services in China will increase significantly as the Chinese government implements support policies and support measures to encourage childbearing. In July 2021, the CPC Central Committee and the State Council issued the “Decision on Optimizing Fertility Policies to Promote Long-term Balanced Population Development”. According to this, couples are allowed to have up to three children, and support measures covering various areas are currently being introduced to encourage childbearing. Since then, more and more provinces and cities in China have introduced incentive policies to encourage childbearing, such as the establishment of childcare allowances. In August 2022, 17 departments including the National Health Commission issued the “Guiding Opinions on Further Improving and Implementing Active Maternity Support Measures” to guide local governments to comprehensively consider factors such as the affordability of health insurance (including maternity insurance) funds and related technical regulations, and gradually include appropriate delivery analgesia and assisted reproductive technology projects in the scope of fund payments in accordance with procedures. As of the date of this report, a total of 19 provincies/municipalities directly under the Central Government in mainland China have officially announced the inclusion of assisted reproductive health services in the scope of medical insurance payments. The “Decision of the CPC Central Committee on Further Comprehensive Deepening Reforms and Promoting Chinese-style Modernization” (hereinafter referred to as the “Decision”) adopted by the Third Plenary Session of the 20th Central Committee in July 2024 lays out arrangements for improving the population development support and service system. According to the requirements and order of coverage of the entire population and the entire life cycle, the “Decision” deployed a series of major measures to reduce the cost of “three childbearing”. The aim is to raise the level of publicization of childbearing, parenting, and education costs, raise the level of public services for basic fertility and child health, enhance basic health care service capabilities throughout the childbearing process, expand service resources for assisted reproduction technology, and improve the maternal and child health service system.