Hong Kong Aesthetic Giant Ecm Healthcare Acquires Rising Gold Phoenix for HK$52.5 Million to Expand Global Footprint

Following the announcement of major acquisitions by Lancy Co. and Mailande, another M&A deal has emerged in the medical aesthetics sector.

On December 8, Langzi Shares officially announced that it would aggressively advance its acquisition strategy for medical aesthetic institutions through a cash capital increase of RMB 950 million, further expanding its business footprint. Shortly thereafter, on December 9, Mailande also moved swiftly to secure a foothold in the medical aesthetics sector by acquiring a controlling stake in Xiaofu Technology.

On December 10, EC Healthcare (02138.HK), listed on the Hong Kong Stock Exchange, also announced that its indirect wholly-owned subsidiary, BMF Worldwide Limited, plans to acquire approximately 90% of the total issued share capital of Rising Gold Phoenix Limited from The Cosmetic Care Group Limited. The consideration for this transaction amounts to HK$52.5 million (subject to adjustment based on specific circumstances).）。

This move has undoubtedly reignited market interest in M&A activity within the medical aesthetics industry, signaling that the sector may be poised for more intense competition and consolidation.

The acquiree, Rising Gold Phoenix Limited, is a company incorporated under the laws of the British Virgin Islands, specializing in investment holding. Through its subsidiaries, it provides customized skincare solutions, professional hair care services, and comprehensive beauty care solutions in Hong Kong and Macau under several well-known brands, including BMF, Marie France, Swissline, and Harvard Addhair Technologies.

Founded in London, UK, in 1956 by Michael Harris, the “Godfather of Hair Health” in Britain, Selsun is a globally renowned and authoritative medical hair care brand. With over half a century of dedicated research and development, Selsun has developed a range of treatment protocols targeting various scalp and hair concerns, effectively addressing issues such as excessive sebum production, dandruff, scalp dermatitis, itching, and different types of hair loss and shedding.

BMF is an integrated brand combining aesthetic, medical, and health services, dedicated to providing comprehensive health and beauty solutions for modern urban dwellers. It boasts a team of senior physicians, aestheticians, and fitness coaches, and has introduced advanced medical equipment and technologies to offer customers a wide range of services, including skincare, minimally invasive cosmetic procedures, anti-aging treatments, physical examinations, disease diagnosis and treatment, and personalized fitness plans.

In fact, EC Healthcare has a long history of acquisitions. As early as 2010, EC Healthcare acquired the Hong Kong-based lifestyle beauty brand Bin Leung Slimming, further enhancing its medical aesthetics business. After its listing on the Main Board of the Hong Kong Stock Exchange in 2016, EC Healthcare expanded upstream in the medical aesthetics sector by acquiring Good Union, a distributor of medical consumables, pharmaceuticals, and medical instruments and equipment.

The significance of this acquisition lies in leveraging the customer base and market reach of Rising Gold Phoenix Limited—which includes intellectual property rights for brands in mainland China, Japan, South Korea, the United Arab Emirates, the United Kingdom, and Switzerland—to further consolidate EC Healthcare’s leading position in high-growth markets and enhance its competitive advantage on a global scale.

EC Healthcare, since its establishment in 2005, has centered its operations on medical aesthetics, continuously expanding its business footprint through organic growth and a series of meticulously planned mergers and acquisitions. To date, EC Healthcare comprises over 40 brands across three major segments: Medical Services (covering general practice, pain management, dentistry, ophthalmology, women’s health, Traditional Chinese Medicine, cardiovascular health, oncology and cancer treatment, advanced imaging, and laboratory testing); Beauty and Wellness (including medical aesthetic and lifestyle beauty services); and Others (such as pet care and the lifestyle fashion brand Wanna Fly).

In recent years, EC Healthcare has demonstrated particularly impressive market performance. According to its 2024 interim results report, the company’s total revenue reached HK$2.063 billion. Notably, EC Healthcare also exhibited strong profitability during the period, with total profit amounting to HK$40.301 million, representing an 88.1% year-on-year increase. Profit attributable to shareholders further surged by 111.95%, reaching HK$14.097 million.

Especially in the niche field of medical aesthetics, EC Healthcare undoubtedly plays the role of an industry leader.

According to the prospectus of EC Healthcare, Hong Kong’s medical aesthetics market is highly fragmented. In 2014, the CR5 (the combined market share of the top five companies) was only 18.6%, while EC Healthcare already held a 6.84% market share, ranking first in the industry. After several years of consolidation and development, by the end of 2017, EC Healthcare’s market share in Hong Kong’s medical aesthetics market had risen to 18.9% based on revenue, further solidifying its leading position. Its medical aesthetics brand, DR REBORN, has become the preferred choice for consumers seeking one-stop medical aesthetics services. Multiple products under the brand have maintained the title of best-selling in Hong Kong for over ten consecutive years, serving nearly ten million customer visits in total, demonstrating significant brand influence.

Meanwhile, EC Healthcare has also taken steps toward globalization. As early as 2016, its medical health division expanded from the local Hong Kong market into mainland China, opening its first medical aesthetics institution in Guangzhou, albeit with a relatively steady pace of initial expansion. As of the end of September 2022, EC Healthcare had established 134, 4, and 16 clinics/service centers in Hong Kong, Macau, and mainland China, respectively. The company primarily focuses on its traditional core businesses, such as medical aesthetics and skincare, while actively expanding into consumer healthcare services, including chiropractic care, dentistry, obstetrics and gynecology, and pediatrics.

Currently, the competitive landscape of the mainland China market remains relatively fragmented. According to Frost & Sullivan data, the CR5 was only 1.5% in 2021, indicating that the market is still in a stage of rapid development. Leveraging EC Healthcare’s mature operational system and its positioning in the high-end medical aesthetics sector, the company is well-positioned to fully capitalize on market dividends during its store expansion.

A Wave of Mergers and Acquisitions Is Sweeping the Medical Aesthetics Industry, Becoming a Hot Topic in the Sector.

According to a report by The Beijing News, since 2021, more than 20 listed companies have announced their cross-industry entry into the medical aesthetics sector, rapidly penetrating this emerging market through mergers and acquisitions. This M&A boom has seen participation from industry giants such as Huadong Medicine, Teyi Pharmaceutical, CMS Pharmaceuticals, and Langzi Shares, as well as prominent enterprises with M&A intentions, including Yuexin Health.

Established pharmaceutical company CMS Pharmaceutical has drawn particular attention for its strategic expansion into the medical aesthetics sector. In 2021, the company successfully acquired all issued shares of Luqa Ventures Co., Limited, a specialized dermatology-focused firm, further expanding its footprint in skin treatments and high-end medical aesthetics.

Huadong Medicine was equally undeterred, acquiring 100% equity of HighTech, a Spanish energy-based medical aesthetics device company held by Cocoon, through its wholly-owned subsidiary Sinclair in the UK. The transaction involved an equity consideration of up to €65 million and sales milestone payments capped at €20 million. This acquisition not only strengthened Huadong Medicine’s capabilities in the field of medical aesthetic devices but also laid a solid foundation for its competition in the global medical aesthetics market.

Lancy Co., Ltd.’s strategic layout in the medical aesthetics sector is also noteworthy. In 2021, the company contributed RMB 125 million of its own funds as a limited partner to establish the Wuhu Bochen No. 8 Equity Investment Partnership (Limited Partnership), a medical aesthetics equity M&A fund, which invests in unlisted companies within the medical aesthetics field and related industries through equity investments. In 2024, Lancy Co., Ltd. further intensified its efforts by injecting RMB 950 million in cash to advance its acquisition plan for medical aesthetics institutions, thereby further consolidating its position in the medical aesthetics market.

However, for the medical aesthetics industry, which is still in its growth phase, the competitive landscape remains highly uncertain.

In recent years, mergers and acquisitions (M&A) within the industry have been dominated by mergers. Large chain institutions have leveraged capital to actively expand their chains, brands, and business models. Driven by the dual forces of sustained high-speed industry growth and the leverage effect of capital, the emergence of super-large leading players in the medical aesthetics sector has become an anticipated reality. This wave of M&A activity has not only accelerated the reshuffling and consolidation of the medical aesthetics industry but also injected new vitality and momentum into its future development.