Wealth curve

Infertility couples are rising year by year. Jinxin Medical

The New Third Board has a listing of the company, and nowadays, an auxiliary reproductive service company will be listed on the Hong Kong capital market.
On February 18, 2019, Jinxin Reproductive Medical Group Co., Ltd. (hereinafter referred to as “Jinxin Medical”) submitted a listing prospectus on the Hong Kong Stock Exchange. Immediately thereafter, the company attracted market attention. Jinxin Medical Prospectus shows that the company is a leading provider of assisted reproductive services in China and the United States. The company owns and operates Chengdu Xiqiao Women's Hospital and Shenzhen Zhongshan Urological Hospital to jointly manage the reproductive center of Chengdu Jinjiang District Maternal and Child Health Hospital. According to the "Securities Daily" reporter, the topic of Jin Xin Medical's hot discussion stems from the number of domestic infertility couples mentioned in the company's prospectus.
Jinxin Medical quoted Frost & Sullivan in the prospectus as saying that there were approximately 47.7 million infertile couples in China in 2017, which is expected to increase to approximately 56.2 million pairs in 2023.
According to the Frost & Sullivan report, the assisted reproductive medical institutions within the Jinxin Medical China Network ranked third in the Chinese assisted reproductive services market in 2017, with 18018 IVF treatment cycles. According to the same indicators, these institutions also ranked first among Chinese non-state-owned assisted reproductive service providers in 2017. In addition, HRC Fertility (including HRC Medical, managed by HRC Management under the Management Services Agreement) ranked first in the US assisted reproductive services market in 2017, with 4,371 IVF treatment cycles.
For the Chinese market, Jinxin Medical expressed optimism. “Because of the low penetration rate of assisted reproductive services, increased infertility rates and limited access to reproductive services, it provides tremendous opportunities for Chinese assisted reproductive service providers.”
Jinxin Medical wrote in the prospectus that China's assisted reproductive services market has increased from 11.5 billion yuan in 2013 to 22.1 billion yuan in 2017, equivalent to a compound annual growth rate of 17.7%. The service market grew to RMB 52.7 billion by 2023.
In fact, according to the company's performance in recent years, the company's growth rate is very obvious.
Review Jinxin Medical's financial data from 2016 to 2017 shows that from 2016 to 2017, the company realized revenues of 346 million yuan and 663 million yuan respectively, as of 2018In the nine months ended September 30, the company realized a revenue of 670 million yuan. The adjusted net profit was 100 million yuan and 199 million yuan from 2016 to 2017, respectively, and 203 million yuan in the first three quarters of 2018.
It is worth noting that in addition to assisted reproductive services, Jinxin Medical's income includes management services and ancillary medical services. According to the announcement, as of the first three quarters of 2018, the company's assisted reproductive services income was 576 million yuan, accounting for 86.3% of total revenue; management service fees were 65.773 million yuan, accounting for 9.8%, and auxiliary medical services were 26.037 million yuan. More than 3.9%.
It is worth mentioning that the cost of assisted reproductive medical services is relatively low, and the investment in fixed assets is relatively small. The gross profit margin of Jinxin Medical is also very impressive.
According to the prospectus, the gross profit margins of the company in 2016, 2017 and the nine months ended September 30, 2018 were 38.3%, 45.6% and 46.7% respectively. The pure interest rate levels were 29.9%, 30.0% and 26.1% in 2016, 2017 and the nine months ended September 30, 2018, respectively.
In the eyes of the industry, with the development of the times, assisted reproductive services are no longer taboo.
Shen Meng, executive director of Xiangxi Capital, said in an interview with the Securities Daily that at present, the New Third Board already has a lover technology. With the development of the times, the issue of fertility is no longer taboo. And more people are pursuing higher demands for sex life, so the future market will be more diverse.
Today, Jinxin Medical has been on the road to IPO, and listed financing can provide financial support for enterprise development. According to the use of the listed funds raised by Jinxin Medical, the company will use about 25.0% of the proceeds to expand and upgrade the existing assisted reproductive medical institutions of the Group China Network and recruit medical professionals (including doctors and embryologists). Increase capacity, expand service mix and market share; approximately 20.0% will be used for potential acquisitions of additional assisted reproductive health institutions in the Chinese provinces that the company does not currently operate; approximately 10.0% will be used for investment research and development to improve overall performance and maintain the company's ART Leading position; approximately 20.0% will be used for assisted reproductive service providers and potential acquisitions of the business in the reproductive services service chain; approximately 15.0% will be used to improve brand focus and overall focus on assisted reproductive services in China and the United States; and approximately 10 .0% will be used for working capital and general corporate purposes.