Yuanxin Technology Files for Hong Kong IPO, Aiming to Become China's Largest Integrated Prescription Drug Delivery Platform

VCBeat has learned that Yuanxin Technology, a comprehensive medical service platform, has filed an IPO application with the Main Board of the Hong Kong Stock Exchange, with Goldman Sachs and CLSA serving as joint sponsors.

According to the prospectus, Yuanxin Technology is committed to achieving a unified goal through its three pillar businesses—out-of-hospital comprehensive patient services, supply-side empowerment services, and innovative healthcare services—by building a synergistic healthcare platform that ensures comprehensive, personalized, and attentive care for patients. Meanwhile, through in-depth collaborations with hospitals, pharmaceutical companies, and insurance providers, it delivers tailored services to industry participants. Mr. He Tao, Chairman and Chief Executive Officer of the Company, brings extensive experience in online and offline pharmaceutical retail and the operation of medical institutions.

According to Frost & Sullivan, in 2020, Yuanxin Technology was China’s largest comprehensive healthcare delivery platform focused on prescription drugs by revenue, providing professional pharmaceutical and medical services to patients through offline pharmacies and medical institutions.

Guided by the philosophy of “minimizing the distance to prescriptions,” Yuanxin Technology has established an extensive pharmacy network, with most pharmacies strategically located near hospitals. As of August 31, 2021, Yuanxin Technology operated 251 pharmacies under the Yuanxin Pharmacy brand across 30 provinces in China. These pharmacies enable patients to conveniently access prescription medications and professional medical services, serving as a complement to in-hospital treatment. Each pharmacy is staffed with an average of approximately two licensed pharmacists, exceeding the industry average, thereby building a leading team of pharmaceutical professionals focused on infusion services and chronic disease management.

To enable customers to access out-of-hospital pharmaceutical services through its nationwide offline pharmacy network, Yuanxin Pharmacy, and its online integrated pharmacy and healthcare service platform, Miaoshou Doctor, Yuanxin Technology’s online pharmacy and Yuanxin Pharmacy complement each other by expanding customer coverage, enhancing the customer experience across both online and offline channels, and diversifying product offerings, thereby providing more convenient services to patients and customers. As of August 31, 2021, the platforms under Miaoshou Doctor had accumulated approximately 3.2 million paying users, with around 28% of its pharmaceutical SKUs available for purchase through its online pharmacy.

In terms of innovative services, Yuanxin Technology has established Yuanxin Huibao, an innovative insurance technology platform. As of August 31, 2021, Yuanxin Technology provided services to approximately 70 insurance companies and seven reinsurance companies, collaborated with insurers to launch over 40 insurance products covering new and specialty drugs, introduced inclusive commercial health insurance in more than 60 cities, and distributed a total of 14 health insurance products through its platform, with approximately 2 million policies issued.

According to the prospectus, the company’s total revenue from 2018 to 2020 was RMB 818.8 million, RMB 2.3521 billion, and RMB 3.6294 billion, respectively, representing a compound annual growth rate (CAGR) of 110%, with continued rapid growth recorded in January–August 2021.