IPO News | Zhuozheng Healthcare reports HKEx revenue of 696 million for the year three times, Tencent and H Capital are shareholders

The Zhitong Finance App learned that according to the Hong Kong Stock Exchange disclosure on November 5, Zhuozheng Medical Holdings Limited (Zhuozheng Healthcare) submitted a listing application to the main board of the Hong Kong Stock Exchange, with Haitong International and SPDB International as co-sponsors. This is the third time that the company has applied for listing on the Hong Kong Stock Exchange. It previously submitted listing applications to the Hong Kong Stock Exchange on May 16, 2024 and March 18, 2025.

According to the prospectus, according to Frost & Sullivan data, in terms of 2024 revenue, Zhuozheng Medical is the third largest private middle and high-end comprehensive medical service institution in China, with a market share of 2.0%. Furthermore, according to Frost & Sullivan's data, the private middle and high-end comprehensive medical service market in China is highly fragmented, and based on the number of Chinese cities covered as of December 31, 2024 and the number of paid patients treated in 2024, Zhuozheng Medical ranked first and second among all private middle and high-end comprehensive medical service organization groups, respectively.

Zhuozheng Medical has always strategically focused on serving the middle and high-end medical service market, targeting wealthy people who usually have strong purchasing power and prefer more personalized medical services. With centralized, standardized and digitized management systems, Zhuozheng Medical has established a network covering some of the most economically developed cities in China, including Shenzhen, Guangzhou, Beijing, Chengdu, Suzhou, Changsha, Shanghai, Chongqing, Hangzhou and Wuhan. As of the last practical date, the company owns and operates 19 healthcare services across China, including 17 clinics and 2 hospitals. Furthermore, as of the last practical date, Zhuozheng Medical operated four general clinics in Singapore and one general practice in Malaysia. The company intends to continue to expand the company's network of healthcare providers through endogenous growth and strategic acquisitions, and penetrate more new first-tier cities.

Under the guidance of a holistic medical approach, Zhuozheng Medical has adopted a family medical model to integrate physical and online medical services. The company has built a growing patient base. The total number of patients served at the company's medical service institutions in China during the relevant period was 162,393, 201,335, 242,549, 190,685 and 212,180, respectively, for the year ended December 31, 2022, 2023, 2024, and August 31, 2025. The total number of paid patients treated at Zhuozheng Medical's medical service institutions and online medical service platforms was 529,829 and 733,397, respectively. 905,825, 595,070, and 642,132. For the year ended 2022, 2023, and December 31, 2024, and for the eight months ended August 31, 2025, the company's patient return rates were 75.7%, 78.2%, 80.0%, and 82.7%, respectively.

Also, in terms of the team of doctors, as of August 31, 2025, Zhuozheng Medical has 387 full-time doctors. They have an average of about 15 years of practice experience after obtaining the license. Of these, about 79% of doctors have practiced in top grade 3 A hospitals before joining the company.

The company's competitive advantages are: the third-largest private middle and high-end comprehensive medical service institution in China based on 2024 revenue; the family medical model integrates physical and online medical services, enabling the company to establish a growing patient base; a high-quality and stable team of doctors, a sound talent development framework; a centralized, standardized and digital management system, and early adoption of artificial intelligence technology to ensure service quality, operational efficiency and scalability; a stable and dedicated senior management team with rich and diverse industry experience.

Financial data

revenue

From 2022 to 2024, Zhuozheng Healthcare achieved revenue of RMB 473 million, RMB 690 million and RMB 959 million respectively, showing an upward trend year by year. For the eight months ended August 31, 2025, the company's revenue was RMB 696 million.

Net loss/net profit

In 2022 and 2023, Zhuozheng Medical recorded net losses of RMB 222 million and RMB 353 million respectively. However, the company's profit split for 2024 and the eight months ending August 31, 2025 was approximately RMB82.27,000 and RMB83.21,000.

Gross profit and gross profit margin

Zhuozheng Healthcare's gross margin increased from 9.3% in 2022 to 19.3% in 2023, and further increased to 23.6% in 2024. As mentioned in the prospectus, the increase in gross margin is mainly due to the increase in the gross margin of physical medical services, and this is mainly due to the increase in the company's operating efficiency and the increase in the number of patients, which allows the company to enjoy greater economies of scale. Zhuozheng Medical's gross margin remained relatively stable for the eight months ended 2024 and August 31, 2025, at 24.8% and 24.0%, respectively.

Industry Overview

According to the prospectus, by the end of 2024, there were 1.092 million medical service institutions in China. According to the type of ownership, medical service institutions can be divided into public medical service institutions and private medical service institutions. From 2020 to 2024, the number of public medical service institutions in China increased slightly from 537,700 to 537,700, while the number of private medical service institutions increased from 483,000 to 554,300, with a compound annual growth rate of 3.5%. The number of public medical service institutions in China is expected to drop from 537,700 to 528,400 from 2024 to 2029, while the number of private medical service providers will continue to grow, from 554,300 to 669,900, with a compound annual growth rate of 3.9%.

The development of the Chinese economy and the increase in the purchasing power of Chinese residents have contributed to a surge in demand for personalized and efficient medical services, thereby contributing to the rapid growth of the private medical service market in China. The revenue of private medical service institutions in China increased from RMB 676 billion in 2020 to RMB 1,292.2 billion in 2024, with a compound annual growth rate of 17.6%. It is expected to grow further at a CAGR of 11.3% from 2024 to 2029, reaching RMB 2,061 billion by 2029.

As healthcare awareness increases and consumer preferences upgrade, more and more patients choose private healthcare providers to enhance their healthcare experience. From 2020 to 2024, the number of paid patients treated by private medical service institutions increased at a CAGR of 8.1% from 1.157 billion to 1,577.3 million. It is expected to grow further at a CAGR of 4.7% from 2024 to 2029, reaching 1,987.6 billion by 2029.

With the development of private medical service institutions, especially private middle and high-end medical service institutions, the average outpatient expenditure of private medical service institutions in China is generally higher than that of public medical service institutions, and maintained steady growth at a compound annual growth rate of 9.3%, from RMB 212.1 in 2020 to RMB 302.4 in 2024. Driven by the growing purchasing power of Chinese residents, the average outpatient expenditure of private healthcare services in China is expected to grow further at a compound annual rate of 6.0% from 2024 to 2029, reaching RMB 404.8 by 2029.

Board of Directors and Executive Information

The company's board of directors consists of 11 directors, including 2 executive directors, 5 non-executive directors, and 4 independent non-executive directors. The board of directors is elected for three years and is responsible for the management and operation of the business and has general powers in this regard.

Shareholding structure

Zhuozheng Medical's shareholding structure is complex, showing diversified characteristics. Since its establishment, Zhuozheng Healthcare has attracted much attention in the capital market, and has successively attracted capital injections from institutions such as Fude Life Insurance and Tencent. Among them, Tencent holds 19.39% of Zhuozheng Healthcare's shares through an image structure. H Capital holds 14.89% of the shares.

According to the prospectus, Cheuk Sing Ho has seven shareholders, namely Mr. Wang Zhiyuan, two other directors, Mr. Shi Yi and Mr. Zhang Xiangdong, two senior managers, Dr. Zhu Yan and Mr. Zhou Fang, and two other individuals, Mr. Zhang Dongsheng and Ms. Zhao Yu, who hold 39.1%, 18.4%, 2.2%, 5.1%, 1.1% and 24.9% of the shares respectively. According to the Cheuk Sing Ho agreement, Mr. Wang Zhiyuan (as the sole director of Cheuk Sing Ho) has the sole right and authority to make decisions and vote on behalf of Cheuk Sing Ho on all matters of the company. Mr Wang Zhiyuan and Cheuk Sing Ho will become controlling shareholders of the company.

Intermediary team

Co-sponsors: Haitong International and SPDB International

Co-sponsor Legal Adviser: (1) Related to Hong Kong and US Law: Sullivan Cromwell Law (Hong Kong) Limited Liability Partnership; (2) Related to Chinese Law: Commerce Law Firms

Company Legal Adviser: (1) Related to Hong Kong and US Law: Mimax Law; (2) Relevant Chinese Law: Jingtian Gongcheng Law Firm; (3) Relevant Cayman Islands Law: Kaibo Law; (4) Related to Singapore Law: Helmsman LLC

Industry Advisor: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch

Compliance Advisor: Haitong International Capital Co., Ltd.