BenQ Medical Center Group, Backed by IT Giant Qisda, Debuts on HKEX with RMB 2.66 Billion Revenue

Today, BenQ BM Holding Cayman Corp. (hereinafter referred to as "BenQ Hospital")Successfully Listed!

As a private hospital group controlled by the IT giant BenQ Materials Corporation, BenQ Hospital is one of the few successful cases of cross-industry entry into healthcare. According to the prospectus, in terms of total revenue in 2023, BenQ Hospital isThe Largest Private For-Profit General Hospital Group in East China, ranking seventh among private for-profit general hospital groups nationwide. In terms of revenue per bed in 2023, BenQ Hospital ranked first among all private for-profit general hospital groups in mainland China.

Unlike BenQ Technology, most cross-industry forays into healthcare have not proceeded smoothly. For instance, the listed company Shinva Medical has been progressively transferring ownership of several of its hospitals since 2018, with its Changsha Changheng Rehabilitation Hospital and Xiangyin Huaya Hospital having gone bankrupt or entered bankruptcy proceedings. Youngor, a leading apparel manufacturer, previously invested RMB 1 billion to build Puji Hospital but planned to donate the hospital in 2022 (a move that was later abandoned due to opposition from minority shareholders). Wanda Group also announced ambitious plans to establish hospitals; however, one of its hospitals has already been sold, equity in another has been pledged, and a third has yet to open.

More importantly, private hospitals are currently facing unprecedented and severe challenges: first, the growth rates of both the volume of medical services and total national healthcare expenditure across China have slowed significantly, leading to a deceleration in market growth; second, the Chinese government’s 2024 policy allowing wholly foreign-owned enterprises to establish hospitals in China has intensified market competition; and third, the DRG/DIP payment reforms impose higher management demands on private hospitals. Under the influence of these multiple factors, industry insiders have remarked, “Hard times are ahead for private hospitals.”

How, then, did BenQ Hospital Group (BBHC), leveraging its cross-industry background, successfully build the largest private for-profit general hospital group in East China? And how will it address the current challenges facing the industry?

Qisda Corporation, the controlling shareholder of BenQ Hospital, is a global technology group spanning the information technology industry, healthcare services and products, intelligent solutions, and network communications. Formerly known as Acer Peripherals (later BenQ Computer), it offers a diverse portfolio of IT products, including LCD monitors, projectors, professional displays, multifunction printers, mobile phones, wireless communication modules, automotive electronics, medical electronics, and mobile display products.

With financial backing from Qisda Corporation, BenQ Hospital Group started with a high development baseline; its two operated hospitals—Nanjing BenQ Hospital and Suzhou BenQ Hospital—were both established in accordance with the standards for China’s highest-tier (Grade III) general hospitals.

Meanwhile, Qisda Corporation collaborated with local state-owned assets and domestic hospitals, securing support from state capital and local medical institutions for BenQ Hospital during its early development stages. For instance, when Nanjing BenQ Hospital was established in 2003, its equity was held by BenQ L (a wholly-owned subsidiary of Qisda Corporation), Nanjing State-owned Assets Investment, and Nanjing Traditional Chinese Medicine Hospital at 70%, 20%, and 10%, respectively. Similarly, upon its establishment in 2004, Suzhou BenQ Hospital’s equity was owned by BenQ L and Suzhou SND Hi-Tech Industrial Development Group at 70% and 30%, respectively. After reaching maturity, Qisda Corporation acquired the remaining shareholders’ stakes, making both hospitals its wholly-owned subsidiaries.

In addition, BenQ Hospital has received continuous support from Qisda Corporation in various aspects, including funding, talent, and technology, during its business development. For instance, many senior executives at BenQ Hospital have years of management experience within Qisda’s affiliated companies. Leveraging Qisda’s IT support, BenQ Hospital possesses IT capabilities uncommon among typical medical institutions. It has independently developed a smart management system, built a smart service platform featuring functions such as online payment and branded reporting, and pioneered an innovative “Smart Hospital” operational model. This has led to the establishment of an integrated hospital operations management system that combines smart healthcare, smart services, and smart management.

In addition to leveragingQisda Corporationofresources, BenQ Hospital also draws onAdvanced Hospital Operations Management Experience in Taiwan, China，Exploring the Development Path of Domestic Private Hospitals Independently。

First, BenQ Hospital regards talent as its core and focuses on recruiting medical professionals from various fields.In 2024, the gross profit margin of BenQ Hospitals declined, primarily due to the recruitment of additional medical professionals, which led to an increase in employee benefit expenses. For instance, the number of chief and associate chief physicians at Nanjing BenQ Hospital increased by 10.5%, from 191 in 2023 to 211 in 2024; similarly, the number of chief and associate chief physicians at Suzhou BenQ Hospital rose by 21.5%, from 107 in 2023 to 130 in 2024.

As of the end of 2024, BenQ Hospital’s medical professionals included 1,011 full-time physicians (341 chief and associate chief physicians, 351 attending physicians, and 319 resident physicians) and 1,938 other healthcare professionals.

Leveraging the resources of BenQ Materials Corporation, BenQ Hospital also boasts a large number of physicians from Taiwan and overseas, bringing internationally leading medical concepts to the institution. For instance, BenQ Hospital has collaborated with Professor Chen Guoding, a renowned cleft lip and palate specialist from Taiwan, engaging him to conduct outpatient consultations, surgeries, and follow-up examinations at Suzhou BenQ Hospital. This partnership has significantly enhanced the hospital’s reputation in this field, attracting numerous patients from across China. As of June 30, 2025, BenQ Hospital had 35 experts from Taiwan and overseas on its staff.

Thanks to substantial investment in talent, BenQ Hospital’s medical team ranks among the industry leaders in terms of size, experience, and internationalization, and it has been listed among China’s Top 10 Best Employers in Private Hospitals for multiple consecutive years.

Supported by its robust medical service capabilities, BenQ Hospital has earned a strong reputation and prestige among patients.

Secondly, BenQ Hospital adopts Taiwan, China, andNumerous mature medical service systems overseas,and flexibly adjust for local patients，thereby winning patients, retaining market share, and expanding the market。

For example, BenQ Hospital has put the “patient-centered” philosophy into practice through systems such as the attending physician responsibility system, the primary nurse care system, the pharmacist medication guidance system, and the patient escort service. Specifically, under the attending physician responsibility system, each patient admitted to the hospital is overseen by a single attending physician from outpatient admission through surgery and postoperative recovery; this physician provides comprehensive supervision and maintains a more thorough understanding of the patient’s condition. The primary nurse care system implements primary nursing, in which one nurse is responsible for all aspects of care—including medication administration—for the same patient, addressing the patient’s various needs in a timely manner…

BenQ Hospital has also invested considerable effort in optimizing its environment and hardware facilities to enhance patient comfort. For instance, the outpatient corridors are designed to be spacious, measuring five to six meters in width, which facilitates the movement of hospital beds and wheelchairs, reduces congestion, and allows electric vehicles to transport patients across different areas. Additionally, child-friendly environments have been specially designed for the pediatrics and pediatric dentistry departments to improve the medical experience for children.

Perhaps influenced by the aforementioned factors, BenQ Hospital has gained widespread recognition among patients. From 2022 to 2024, the combined number of inpatient visits at the two hospitals under BenQ Hospital totaled 67,000, 82,000, and 86,000, respectively; the combined number of outpatient visits amounted to 1.68 million, 2.00 million, and 2.15 million, respectively. Both inpatient admissions and outpatient visits demonstrated significant growth.

Once again, BenQ Hospital focuses on building specialized departments to enhance its market influence.As of the end of 2024, Nanjing BenQ Medical Center boasted one National Key Clinical Specialty (Thoracic Surgery), one Jiangsu Provincial Key Clinical Specialty (Department of Medical Imaging), one Jiangsu Provincial Key Clinical Specialty Construction Unit (Department of Urology), and 16 Nanjing Municipal Key Medical Specialties, with all department heads being renowned experts in their respective fields.

Suzhou BenQ Hospital has adhered to a strategy of differentiated development, leveraging its keen insight into market demands to build unique advantages in departments such as obstetrics and gynecology and pediatrics. Relying on its high-level medical technology and patient-centered healthcare services, the hospital has earned a strong reputation among local residents. Additionally, Suzhou BenQ Hospital has appointed Professor Li Weijie, the founding chairman of the Asia-Pacific Society for Metabolic and Bariatric Surgery, to lead the establishment and development of its Center for Metabolic and Bariatric Medicine, thereby establishing BenQ Hospital as a well-known brand in the field of bariatric surgery in China.

Finally, by establishing collaborations with leading hospitals and universities in China, BenQ Hospital has cultivated a large pool of talent and promoted scientific research innovation, thereby continuously enhancing its reputation and influence within the industry and locally.

In terms of collaboration with hospitals and universities, Nanjing BenQ Medical Center serves as an affiliated hospital of Nanjing Medical University, a teaching hospital for the Medical School of Southeast University and Nanjing University of Chinese Medicine, as well as a Jiangsu Province Postdoctoral Innovation Practice Base and a Jiangsu Province Blood Purification Technology Training Base. Suzhou BenQ Medical Center has jointly established the “Soochow University BenQ Institute of Clinical Medicine” with Soochow University, creating a new pathway for healthcare technological innovation aligned with international standards. Additionally, Suzhou BenQ Medical Center collaborates with medical institutions such as Kaohsiung Medical University to build a cross-strait medical translation platform, fostering scientific research and technological synergy between the two sides of the strait.

In terms of scientific research and innovation, BenQ Hospital fully supports clinical experts in conducting research projects, thereby enhancing its reputation. For instance, the Department of Intestinal Fistula Surgery at Nanjing BenQ Hospital successfully addressed secondary infections in numerous critically ill patients through its research on maintaining intestinal barrier function. This achievement improved cure rates and elevated the hospital’s national prominence in this field.

BenQ Hospital’s support for scientific research has also attracted more clinical experts to join its team. For instance, Nanjing BenQ Hospital successfully invited Professor Wang Xiaoyan, a nephrology expert, to establish the Central Laboratory, and Professor Zhao Yun, an expert in surgical infection and clinical immunology, to establish the Surgical Laboratory. Under the leadership of these two professors, Nanjing BenQ Hospital has participated in multiple projects, including those funded by the National Natural Science Foundation of China and key projects of the Jiangsu Provincial Health Commission. In the past five years, the hospital has published over 100 SCI-indexed papers, further enhancing its influence.

Furthermore, BenQ Hospital has improved its profitability through enhanced operational capabilities and management models.It centrally manages the two hospitals through the Group’s Operations Center, fostering a pattern of mutual promotion and complementary strengths underpinned by seamless information sharing. For instance, in procurement, the Group has established a dedicated Materials Management Department responsible for negotiating prices for pharmaceuticals and other supplies, with hospital campuses providing support. This centralized negotiation and procurement approach enables the hospitals to secure favorable terms from suppliers.

In terms of operational processes, BenQ Hospital has continuously enhanced its operational capabilities, with a particular focus on improving the quality of medical services, boosting patient satisfaction, streamlining surgical workflows, and reducing surgical costs. As a result, the hospital’s average bed turnover days were 9.2 days, 8.2 days, and 7.9 days in 2022, 2023, and 2024, respectively, while its bed occupancy rate has continued to rise.

Driven by its operational capabilities and management model, BenQ Hospital recorded revenues of RMB 2.336 billion, RMB 2.688 billion, and RMB 2.659 billion in 2022, 2023, and 2024, respectively, with net profits of RMB 89 million, RMB 168 million, and RMB 109 million. Data previously released by the National Health Commission showed that in 2020, 43.5% of the 2,508 tertiary public hospitals across China reported negative medical surpluses. Among the many hospitals operating at a loss, BenQ Hospital’s RMB 2.6 billion in revenue and over RMB 100 million in profit stand out prominently.

To date, BenQ Hospital Group (BBHC) has become the largest private for-profit general hospital group in East China. Its two affiliated hospitals have a combined total gross floor area of approximately 400,000 square meters, with 1,850 registered beds and a team of over 1,000 physicians. In 2024, the group recorded more than 2 million outpatient visits and performed over 22,000 inpatient surgeries annually.

In the future, BenQ Hospital will further expand the scale of its existing hospitals to enhance service capacity. The Phase II project of Nanjing BenQ Hospital is currently under construction; the first stage, focusing on the construction of a specialized medical building, was completed at the end of 2024, while the second stage, centered on building a VIP Care Center, is scheduled to commence in 2027. The Phase III project of Suzhou BenQ Hospital aims to establish a Women’s and Children’s Medical Center, and the Phase IV project intends to create a Rehabilitation and Long-Term Care Center, with construction planned to begin in 2027.

In addition to organic growth, BenQ Hospital also plans to expand its medical service platform through acquisitions with the support of Qisda Corporation. Previously, BenQ Hospital made a strategic investment in Guigang Donghui Hospital in Guangxi, further expanding its footprint.

At this stage, private hospitals are facing a series of severe challenges.

First, policy reforms such as DRG/DIP payment models have negatively impacted the profitability of private hospitals.Compared with previous medical payment methods, the currently implemented DRG/DIP payment system reimburses based on Diagnosis-Related Groups (or Disease-Specific Point Values) rather than covering all actual incurred costs. This requires hospitals to strengthen cost control capabilities and improve operational efficiency to ensure financial sustainability.

In practice, under the DRG/DIP payment system, the total health insurance reimbursements received by most private hospitals have decreased, and BenQ Hospital is no exception. Since Nanjing BenQ Hospital and Suzhou BenQ Hospital implemented the DRG payment system in 2022, the average expenditure per hospitalization for patients at BenQ Hospital has significantly decreased. For instance, at Nanjing BenQ Hospital, the figure dropped from RMB 18,500 in 2022 to RMB 16,400 in the first half of 2025, while at Suzhou BenQ Hospital, it fell from RMB 17,100 in 2022 to RMB 14,200.

On the other hand, the implementation of the Diagnosis-Related Group (DRG) payment system requires hospitals to limit reimbursement for specific diseases within standard amounts to control costs, thereby imposing additional pressure on hospital cost management. Meanwhile, as DRG payment groups continue to be optimized and adjusted in terms of reimbursement standards and grouping methodologies, hospitals must make substantial investments in management systems and staff training to ensure accurate DRG classification and ongoing compliance with the DRG system. This also incurs additional costs for hospitals.

Declining average revenue per patient and rising costs. Under these circumstances, the DRG payment system has further compressed hospital profit margins. For instance, BenQ Hospital’s operating costs increased from RMB 1.953 billion in 2022 to RMB 2.177 billion in 2024 (RMB 2.18 billion in 2023), while its net profits were RMB 89 million, RMB 168 million, and RMB 109 million, respectively. In 2024, its net profit experienced a significant year-on-year decline.

More importantly, private hospitals largely rely on competitive compensation packages to attract and retain medical talent. The implementation of Diagnosis-Related Groups (DRG) may constrain their ability to raise salaries, thereby diminishing their appeal to healthcare professionals, particularly clinical specialists. Without outstanding physicians and other medical professionals, private hospitals may struggle to attract patients or deliver high-quality services to the public, which could adversely affect their business operations and financial performance.

Second, competition between private and public hospitals has intensified.In the domestic market, public hospitals enjoy greater public trust and patient recognition, thereby capturing the vast majority of the market share. Private hospitals, by contrast, must pursue differentiated development strategies—such as specialized departments and high-end medical services—and intensify brand promotion to attract patients. However, the state is currently actively promoting the high-quality development of public hospitals and strengthening the construction of national and regional medical centers. This trend may further squeeze the market share of private hospitals.

Faced with these challenges affecting the overall development of private hospitals, what are BenQ Hospital’s strategic considerations?

In response to the DRG reform, BenQ Hospital has adopted an intelligent and refined management system to effectively control costs and improve operational efficiency. Since 2021, BenQ Hospital has implemented the Huoshu System, an intelligent DRG analysis solution, across its two affiliated hospitals.

This system can automatically predict the Diagnosis-Related Group (DRG) for each patient based on their symptoms, initial diagnosis, and primary treatment methods.Grouping and providing physicians with clear reimbursement standards for each group as a reference for clinical treatment. Through this system, BenQ Hospital can control costs during patient treatment and alleviate some of the operational and financial challenges brought by the implementation of the DRG payment system.

Leveraging technological advancements, BenQ Hospital has achieved automation and intelligence across multiple facets of its medical services, effectively reducing the staff-to-patient ratio and enhancing personnel efficiency. Furthermore, by leveraging informatized data and analyzing operational metrics, the hospital has improved physicians’ consultation efficiency and optimized the utilization of resources such as medical equipment and hospital beds.

In response to intensifying market competition, BenQ Hospital plans to expand its medical service capacity, strengthen its specialty advantages, and promote the development of a smart hospital. Specifically, BenQ Hospital will establish a regional medical consortium, enhance collaboration with primary and secondary hospitals and community healthcare institutions within the region, and form a management model characterized by resource sharing and division of labor. This initiative aims to facilitate resource sharing and patient referrals, providing patients with integrated, convenient, and continuous full-cycle services encompassing diagnosis and treatment, rehabilitation, and long-term care.

BenQ Hospital will also continue to advance its internet hospital’s engagement with local communities, nursing homes, and long-term care facilities through online consultations, thereby expanding online revenue streams and driving patient traffic from online platforms to its offline hospitals.

Going public is merely a new beginning. How will BenQ Hospital resolve the development challenges facing private hospitals in the future, and is its growth model replicable? We will continue to monitor this closely.