Zhenlipai Applies for NEEQ Listing, Raises RMB 17.32 Million

December 25 News: Ningbo Zhenlipai Software Information Co., Ltd. has officially applied for listing on the National Equities Exchange and Quotations (NEEQ) in recent days. Zhenlipai is a company under Mr. Tu Honggang (also known as Dr. 2), a well-known expert in mobile healthcare.

According to the recommendation report disclosed by Zhenlipai’s sponsoring broker, Zhenlipai was established on November 7, 2012, and completed its joint-stock reform on November 20, 2015. Tu Honggang (Chairman), Zhang Fanfan (Director and General Manager), and Shanghai Yize collectively hold 53.87% of the shares, serving as the company’s actual controllers.

The announcement shows that Zhenlipai’s operating revenues for 2013, 2014, and January–August 2015 were RMB 35,100, RMB 116,500, and RMB 1.0624 million, respectively; its net profits were -RMB 1.2875 million, -RMB 2.0452 million, and -RMB 3.1162 million, respectively.

Another key piece of information in the report is that during Zhenlipai’s shareholding reform in November 2015, it received capital injections from Shanghai Zhenjie and Hangzhou Boguan. Each entity subscribed to 1 million shares at a price of RMB 8.66 per share, raising a total of RMB 17.32 million.

▼ Current Development Status

As shown in the report, since its launch in October 2014, the Zhenlipai App has experienced rapid growth. It currently boasts over 209,000 registered users, including more than 149,000 physicians who have undergone real-name and credential verification. With monthly active users exceeding 40,000, the app demonstrates strong user experience and high retention rates.

▼Resource Layout

In 2015, Zhenlipai actively pursued industry layout and resource integration. In May 2015, the company completed the acquisition of a 60% equity stake in Shanghai Peifubao, thereby entering the medical insurance sector to provide third-party insurance services. In June and July 2015, it respectively completed the acquisitions of 100% equity in Heilongjiang Longrui and 60% equity in Beijing Tangjian, establishing its presence in film and video production and patient community social platforms, respectively.

Zhenlipai also plans to bring in partners such as pharmaceutical companies, medical device manufacturers, and large insurance institutions to expand the breadth and depth of its collaborations.

Furthermore, Zhenlipai has established sound business partnerships with Huakang Panoramic, Chunyu Doctor, MedSCI, and Yimai Tong. Its controlling subsidiary, Shanghai Peifubao, has also entered into strategic collaborations with Fude Sino Life Insurance and Huanya.

▼Company Advantages

The report identifies several key advantages of Zhenlipai: 1. Strong growth potential, primarily reflected in the rapid increase in user numbers and high engagement levels on the Zhenlipai app; 2. R&D strengths within the team, with core members possessing medical backgrounds; 3. Robust fundraising capabilities, having secured multiple rounds of financing since its establishment.

▼Risk

In addition to the routine industry risks mentioned in the report, Essence Securities believes that Zhenlipai faces several other risks: 1. Excessive customer concentration. In 2013, 2014, and January–August 2015, sales to the top five customers accounted for 100.00%, 100.00%, and 58.49% of the company’s operating revenue for the respective periods. 2. Risks related to management and goodwill arising from corporate integration. 3. Risks associated with rising labor costs, among others.

Finally, we wish Dr. 2’s team every success in listing on the NEEQ. Go for it!