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Harmonicare Medical, the Largest Domestic Private Maternity Hospital Group, Is Listed on Hong Kong Main Board

Author:Harmonicare Medical Date:2015-07-08 15:36:50

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Mr. Lin Yuming, Harmonicare Medical’s Chairman of the Board of Directors and President, knocking the gon

  Harmonicare Medical Holdings Limited, China’s largest private maternity hospital group, was listed on the main board in Hong Kong Exchange on July 7. Mr. Lin Yuming, Harmonicare Medical’s Chairman of the Board of Directors and President, made a speech and said Harmonicare Medical is committed to becoming a leader in China’s high-end medical service market and providing the health care services of best quality for women and children.

  The public offering of Harmonicare Medical (1509) ended on June 30, and on the first day of its international placement, the four well-known international investment funds rushed to purchase, and there was enthusiastic market response and active subscription. As at the closing date of public offer, Harmonicare Medical has been oversubscribed 7.7 times, and the price was fixed at the upper limit HKD 7.55. According to the publicly available data, 2.1081 billion shares were offered in this global offering of Harmonicare Medical with to HKD 1.5916 billion raised.

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Mr. Lin Yuming, Harmonicare Medical’s Chairman of the Board of Directors and President

  Policy support for medical service industry allows broad prospects of private maternity hospitals

  Since last year, the domestic medical stocks have attracted much attention, the medical market is hot, and many listed companies have been involved in the medical industry. Earlier this year, Li Keqiang, Premier of State Council, proposed to build healthy China, encourage medical organizations established with social capital, and comprehensively promote the comprehensive reform of public hospitals, etc. in the government work agenda, injecting new impetus to the entire medical industry.

  Gynecology and obstetrics hospitals not only benefit from the positive medical policy, but also are beneficiaries of the relaxed national childbearing policy and the increase in rigid demand. This year, the Chinese government plans to fully deploy and launch the “two-child” policy (which means Chinese couples with one spouse being an only child would be permitted to have two children), which is expected to significantly boost the entire obstetrics and gynecology medical market and enough to bring enormous business opportunities for the entire industry of obstetrics and gynecology.

  Compared to public maternity hospitals, private maternity hospitals have three major advantages: firstly, private hospitals provide the comfortable environment for medical treatment and the considerate and thoughtful services, which are especially appealing to female patients; secondly, private hospitals are willing to pay more to employ experienced physicians than public hospitals, and thus the medical level is also guaranteed; thirdly, private hospitals have higher medical efficiency and can provide more efficient and professional services to patients.


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Group photo of guests attending the listing

  The largest domestic private obstetrics and gynecology hospitals boasting considerable market share

  In the past ten years since its establishment, Harmonicare Medical has become China’s largest private obstetrics and gynecology hospital. According to the prospectus, based on the Group’s revenue in 2013, Harmonicare Medical ranks the first among all private obstetrics and gynecology hospital groups in China and its market share is about 13%, more than twice the market share of the second-largest competitor in the industry. Thanks to the expansion of scale effect and the enhancement of company management efficiency, the proportion of Harmonicare Medical’s sales and administrative expenses in its revenue is decreasing year by year, and the past three years have witnessed significant growth of its operating profit and net profit.

  Harmonicare Medical is committed to providing high-quality health care services for Chinese women and children. At present, Harmonicare Medical opens and operates 11 hospitals in China’s seven first-tier and second-tier cities mainly with “Harmonicare” and “Modern Women” brands, and it will continue to develop the markets in first-tier and second-tier cities featured by high population density and high per capita disposable income, such as Shanghai, Nanjing and Hangzhou etc., in the future. The insiders believe that the large population of first-tier and second-tier cities leads to strong demand for gynecology and obstetrics health care and thus allows broad market prospects of private hospitals.

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  Group photo of guests

  Strong medical care team and JCI certified quality assurance

  One of the important reasons for Harmonicare Medical’s leading position in the industry is its experienced and high-quality medical care team. It is reported that the group has 484 physicians, including 66 chief physicians, 128 associate chief physicians, 151 attending physicians and 139 resident physicians; in addition, the average number of qualified medical care workers in service per bed is 1.63, far higher than 0.88 as stipulated by the government, so more meticulous and considerate services can be provided to patients.

  In the future, to maintain and expand the excellent medical care team is still Harmonicare Medical’s development priority, and to actively promote the group’s hospitals in getting JCI certification, the globally recognized highest standards for medical service quality and the safety, or the similar certifications is also one of Medical Harmonicare’s improvement directions. It is reported that Shenzhen Harmonicare Hospital obtained JCI certification in 2011 with renewal to 2017. JCI certification helps improve reputation, attract more patients to receive medical treatment and recruit more experienced physicians who are attracted to join.

  On the Hong Kong capital market, there are only several domestic medical stocks, whose main business is in the form of trust with custodian management fees collected by trusting many public hospitals and clinics. In contrast, Harmonicare Medical is a rare pure hospital stock, and all of its 11 hospitals are self-support hospitals free from restriction of service or management agreement with specified term and allowing pricing of their medical care services as appropriate; in addition, the medical care revenue of Harmonicare Medical accounts for more than 94% of the Group’s total revenue, which reflects that Harmonicare Medical is a health care provider in the true sense.

  Since the country has adopted a series of policies to support the development of private hospitals and also severely limited the proportion of public hospitals to provide high-end services in special needs, Harmonicare Medical aimed at the high-end market avoids the direct competition with public hospitals. In the future, Harmonicare Medical’s differentiated competitive strategy will bring broader space for its development. As the industry leader, it has first mover advantage. Many insiders in the industry are optimistic about Harmonicare Medical.