Following Riel Dental, another dental specialist medical service was invested.
On June 16, Lenovo Holdings invested in Baibo Dental Medical Group for RMB 1 billion. As a strategic investor, Zhu Linan, president of Legend Holdings, said that this is only the first investment, and will continue to provide financial support through diversified financing instruments such as bonds.
According to the "China Business News" reporter, the VC/PE investment case since 2014 also proves that the medical and health industry investment is closely behind the Internet, IT, and telecommunications. Among them, mobile medical care has become the new favorite of a new round of capital investment at home and abroad.
Layout medical
Previously, Lenovo’s core operating assets involved only five major industries, including IT, real estate, consumer and modern services, new chemical materials, and modern agriculture. This investment may be regarded as the beginning of Legend Holdings' entry into the medical service sector, and is also inseparable from its overall listing from 2014 to 2016.
Xu Lingni, a researcher in the pharmaceutical industry of China Investment Consulting, told this reporter that the strategic cooperation with Baibo Dental on the eve of the listing indicates that Legend Holdings is optimistic about the development potential of the medical service sector, and that its core assets will help to further enhance the company's listing. The attraction of investors.
Legend Holdings recently disclosed its 2013 annual report, which showed revenue of 244 billion yuan last year, up 7.7% year-on-year; net profit of 2.08 billion yuan, up 20% year-on-year.
Legend Holdings has invested heavily in its efforts to demonstrate its determination to enter the medical field. In April of this year, Qiming Weichuang, Xintianyu, Telford Capital, Kaipeng Huaying and other seven joint investment Riel Dental totaled only 70 million US dollars. Even the specialized hospitals favored by capital have a lower investment amount. Sequoia Capital invested hundreds of millions of dollars in the investment of high-end maternity hospital Angel, Huaping Capital invested in the United States and China, and the latter's investment amount is only 100 million US dollars.
Zhu Linan stressed that Legend Holdings is a strategic investment, not a financial investment. Even if Baibo is listed on the Internet, it will still be held in the future. Li Changren, the founder and chairman of Baibo Dental, also said that although there were many pursuers at that time, the identity of Legend Holdings’ strategic investment made it fall in love at first sight. Therefore, it did not choose the capital party with the highest bid.
Previously, Baibo's mouth had carried out three rounds of financing, and Legend Holdings did not disclose the specific investment ratio, but industry insiders speculated that Legend Holdings's inclusion of its core operating assets indicates that Lenovo must be a large shareholding.
Li Changren said that around Beijing, the Pearl River Delta, the Yangtze River Delta and the Southwest Region, the cities above the provincial capital will accelerate their expansion, and in the cities that have already formed a chain, they will increase their outlets. “By 2017, achieve or exceed the development goals of establishing 200 medical institutions across the country and upgrading the chain layout to 40 to 50 cities.â€
“Enterprises can use the chain method to speed up the market layout, and the (oral medical) risk accident rate is low, and the rate of return is high, which is suitable for small-scale and large-scale chain development.†Xu Lingni said.
It is reported that the expansion of Baibo's mouth will only choose to open a shop, or mergers and acquisitions. A brokerage analyst helped the reporter to calculate an account. If the self-built method was adopted, the average investment per store was 5 million to 8 million yuan, and the initial scale was 20 dental chairs. The speed of turning losses depends on the local market, and it usually takes 1~3 years to achieve profitability. Moreover, the level of economic development and the situation in the eastern and western regions are also different.
The 2013 China Health Statistics Yearbook shows that the gross profit margin in the medical services sector is more than a dozen points, and the market average net profit margin is about 10%.
However, the above brokerage analyst told reporters that this figure may be somewhat conservative. He said that the first report of the domestic A-share listed company, which is mainly engaged in oral medical services, is the annual report. In 2013, the gross profit rate of the main business medical service was 44.13%. This figure is not much different from the quarterly average gross profit margin of 44.45% from the second quarter of 2013 to the first quarter of 2014. And the company's main business income increased by 22.10% year-on-year, mainly due to the growth of medical service income.
However, with the increasing number of dental chain agencies, the requirements for corporate management capabilities are getting higher and higher.
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