Chaoju Eye Care Holdings Passes HKEX Listing Hearing, Emerging as the Second-Largest Private Ophthalmic Hospital Group in North China

According to the disclosure by the Hong Kong Stock Exchange on June 21, Chaoju Eye Care Holdings Limited (abbreviated as "Chaoju Eye Care") has passed the HKEX listing hearing,Haitong Internationaland Huatai International as its joint sponsor.

Chaoju Eye Care is a ChineseGuohuaA leading and nationally renowned eye care medical service group in North China. According to the Frost & Sullivan report, among private eye hospitals, the Company ranked first in Inner Mongolia, second in North China and fifth in China in terms of total revenue in 2020.

China has a vast and rapidly growing ophthalmic medical services market. According to Frost & Sullivan, the size of China's ophthalmic medical services market increased from RMB73.0 billion in 2015 to RMB127.5 billion in 2019, at a compound annual growth rate ("CAGR") of 15.0%, and is expected to further increase to RMB223.1 billion by 2024; the size of the ophthalmic medical services market in North China increased from RMB13.2 billion in 2015 to RMB21.2 billion in 2019, at a CAGR of 12.5%, and is expected to further grow to RMB33.7 billion by 2024; the size of the ophthalmic medical services market in Inner Mongolia increased from RMB1.1 billion in 2015 to RMB2.0 billion in 2019, at a CAGR of 15.6%, and is expected to further grow to RMB3.3 billion by 2024.

Rooted in North China, the Company has established an extensive network of ophthalmic hospitals and optometry centers spanning five provinces and autonomous regions across China, namely Inner Mongolia, Zhejiang Province, Jiangsu Province, Shanxi Province, and Hebei Province. As of the Latest Practicable Date, the Company operates a network comprising 17 ophthalmic hospitals and 23 optometry centers. In addition, as of the Latest Practicable Date, the Company also operates two clinics as branches of its hospitals, and one of the Company’s optometry centers holds a Medical Institution Practice License, functioning as a licensed clinic capable of providing certain outpatient services.

The Company’s suppliers primarily comprise manufacturers and their distributors of medical devices, pharmaceuticals, medical consumables, and optometry products, as well as suppliers providing third-party medical testing and laboratory services. In 2018, 2019, and 2020, total purchases from the five largest suppliers accounted for 33.6%, 36.1%, and 38.9%, respectively, of total purchases in the corresponding years, while purchases from the single largest supplier accounted for 16.0%, 14.3%, and 17.7%, respectively, of total purchases in the corresponding years.

The Company's revenue was primarily derived from consumer eye care services and basic eye care services. The table below sets forth a breakdown of the Company's revenue by business segment for the years indicated.

During the Track Record Period, the Company experienced rapid growth. The Company’s revenue increased by 13.0% from RMB632.7 million in 2018 to RMB714.7 million in 2019, and further increased by 11.1% to RMB794.3 million in 2020. The Company’s net profit also increased substantially from RMB29.2 million in 2018 to RMB70.8 million in 2019, and further increased by 70.2% to RMB120.5 million in 2020. In 2018, 2019 and 2020, the number of patient visits at the Company’s hospitals were 638,650, 702,143 and 696,206, respectively, and the number of customer visits at the optometry centres were 73,935, 79,903 and 91,660, respectively.