Topchoice Medical Reports H1 2017 Revenue of RMB 507 Million, Expands Oral Healthcare and Accelerates Auxiliary Reproductive Services

VCBeat (WeChat ID: vcbeat) has learned that Topchoice Medical recently disclosed its 2017 semi-annual report. As a main-board listed company in China, Topchoice Medical is primarily engaged in dental care and assisted reproductive technology (ART) services, having cultivated deep expertise in these healthcare sectors for many years.

During the reporting period, the Company’s revenue was primarily derived from medical services. The Company achieved operating revenue of RMB 507 million, representing a year-on-year increase of 33.50%. Of this, revenue from medical services amounted to RMB 506 million, up 33.53% year on year. The number of outpatient visits for medical services reached 749,900, a year-on-year increase of 28.89%. Net profit attributable to shareholders of the listed company amounted to RMB 88.33 million, an increase of 22.82% year on year. Basic earnings per share were RMB 0.28, representing a year-on-year increase of 27.27%.

As national healthcare service reforms continue to deepen, the company has actively aligned its industrial layout with its development strategy, vigorously expanding its dental care segment while strengthening the build-out of its assisted reproductive medicine sector.

The Company continues to expand its healthcare market presence by refining its “flagship hub hospital + branch hospitals” business model. Leveraging a series of favorable policies that encourage private investment in healthcare, the Company has accelerated the deployment of its hospital network through new construction, acquisitions, expansions, and joint ventures, thereby broadening its operational reach. As of the end of the reporting period, the Company had established 24 dental hospitals.

The oral healthcare services sector continues to expand steadily outward. During the reporting period, the Company’s Board of Directors reviewed and approved the establishment of Hangzhou Chengdong Dental Clinic in Jianggan District, Hangzhou; the establishment of Wenzhou Cunji Stomatological Hospital in Lucheng District, Wenzhou; and the capital increase, share expansion, relocation, and reconstruction of its wholly-owned subsidiary, Quzhou Stomatological Hospital. These strategic deployments have significantly increased the Company’s market share in the oral healthcare sector and will further expand its scale and influence within Zhejiang Province.

In addition, the Company’s subsidiaries—Hangzhou Chengbei Stomatological Hospital, Hangzhou Stomatological Hospital (Qingchun Branch), and Yiyang Stomatological Hospital—have obtained the Medical Institution Establishment Licenses from their respective local authorities as planned and have commenced operations on schedule; Huangshi Modern Stomatological Hospital has also completed its relocation and reconstruction and has resumed operations.

The Company has already deployed and established dental hospitals in six key cities: Beijing, Wuhan, Chongqing, Chengdu, Guangzhou, and Xi’an. Based on their construction timelines and profitability profiles, these hospitals are expected to generate profits for the Company within the next one to two years, positioning them as significant growth drivers.

The company has continued to increase its investment in the field of assisted reproduction. Following the Kunming Maternal and Child Health Hospital for Reproductive Medicine in 2015, the company officially established the Zhoushan Bourn Assisted Reproduction Hospital in January 2017 and partnered with the Zhoushan Maternal and Child Health Hospital. The plan is to develop these two hospitals into benchmarks for assisted reproduction in China and Zhejiang Province, respectively.

In the field of assisted reproductive technology (ART), the company collaborates with Bourn Hall Clinic, founded by Professor Robert Edwards, a Nobel Laureate. By adopting internationally advanced medical service models and management expertise, and integrating them with the current state of China’s industry, the company leverages cutting-edge global technologies to provide patients with premium ART medical services. This approach encompasses enhancements in service delivery, service content, treatment modalities, material usage, and equipment selection.

The company has already established its first reproductive center in Kunming. When the time is right, the company's assisted reproductive medical services will expand nationwide.

During the reporting period, to enhance the professional management of the Company’s maternal and child healthcare services, the Company invested in establishing Zhejiang Topchoice Maternal and Child Healthcare Hospital Investment Management Co., Ltd. as the management platform for its Maternal and Child Healthcare Division, providing services such as investment management for maternal and child healthcare hospitals, industrial investment, and investment consulting.

The Company’s controlled subsidiary, Hangzhou Bonn Reproductive Technology Management Co., Ltd., invested in the establishment of Zhoushan Bonn Reproductive Hospital in Zhoushan City, Zhejiang Province, and entered into a collaboration with Zhoushan Maternal and Child Health Care Hospital to vigorously develop medical service businesses in the field of reproductive health.

The company is anchored in two specialized medical service sectors—dental hospitals and assisted reproductive technology—and is gradually breaking through regional constraints through business model innovation, laying the foundation for expanded growth potential. During the reporting period, the company highlighted four key advantages:

First, the “Tongce Physician Group” and its technological advantages. The company places great emphasis on talent acquisition and utilization, adheres to continuous optimization of its talent structure, and is committed to building the “Tongce Physician Group.”

In the field of dental healthcare, the company has collaborated with renowned domestic and international academic institutions to establish an integrated platform for medical practice, education, and research through partnerships with medical schools and hospitals. This approach has progressively fostered the integration of medical care, teaching, and research, resulting in a maturing talent development system and a virtuous cycle in talent acquisition. These efforts have strengthened the stability of core talent teams and laid a solid foundation for the enhancement of clinical expertise.

Second, operational management advantages. The company’s core management team possesses strong educational backgrounds and extensive industry experience. Over years of development, the company has established a comprehensive set of mature and efficient management systems. Corporate affairs are managed in strict accordance with these internal regulations. By adopting a business unit structure, the company implements a line management model for its dental care and maternal & child healthcare segments, effectively enhancing overall management standards as well as the decision-making and operational efficiency of its subsidiary hospitals.

Third, brand advantage. As the first company listed on the main board in China with medical investment and hospital management as its core businesses, Topchoice Medical, along with its subsidiaries Hangzhou Stomatological Hospital and Ningbo Stomatological Hospital, has established a strong brand reputation within Zhejiang Province and gained substantial recognition from patients.

On the other hand, the founder of Bourn Hall Clinic in Cambridge was Robert Edwards, known as the "father of IVF," who was awarded the 2010 Nobel Prize in Physiology or Medicine for his contributions to the development of in vitro fertilization.

By partnering with Bourn Hall Clinic, the company leverages its global brand strength in assisted reproductive technology to drive the growth of its own assisted reproduction medical services.

Fourth, advantages in professional services. The company prioritizes enhancing the service capabilities of its affiliated hospitals, ensuring continuous improvement in service quality. Over years of accumulation, the company has established a service system aligned with development goals and customer experience. Its affiliated medical institutions continuously summarize management and operational practices, actively update management concepts, and elevate hospital service standards. Service quality across all hospitals is improved through various measures, including team service evaluations and the implementation of service supervision mechanisms.