We are a private healthcare service provider in China, with a strategic focus on serving the mid- to high-end healthcare service market, targeting mass affluent and wealthy population that generally has stronger purchasing power and a preference for more personalized care. The mass affluent and wealthy population refers to a demographic group with a per capita annual disposable income exceeding RMB200,000. China’s healthcare service market can be broadly divided into the affordable healthcare service market and the mid- to high-end healthcare service market. Mid- to high-end healthcare services refer to comprehensive and customized services that emphasize on patient experience and service quality and can be further categorized into public mid- to high-end healthcare services and private mid- to high-end healthcare services. In 2024, private mid- to high-end healthcare service institutions contributed approximately 66.5% of the total revenue of the mid- to high-end healthcare service market in China and approximately 5.6% of the total revenue of the PRC healthcare service industry. According to Frost & Sullivan, the total revenue of private mid- to high-end healthcare service market in China increased at a CAGR of 21.9% from RMB193.0 billion in 2020 to RMB426.3 billion in 2024, and is forecasted to continue to grow at a CAGR of 14.3% from 2024 to 2029 to reach RMB831.4 billion in 2029. Within the private mid- to high-end healthcare service market, service providers can be further categorized based on their service scope into comprehensive healthcare service providers and non-comprehensive healthcare service providers. Within the private mid- to high-end comprehensive healthcare service segment, we are the third largest private mid- to high-end comprehensive healthcare service provider in China in terms of revenue in 2024, with a market share of 2.0%, according to Frost & Sullivan. In the broader mid- to high-end healthcare service market, our market share was approximately 0.1% in 2024. We may also compete with public and non-comprehensive healthcare service providers to some extent.
We started our business in 2012. Leveraging our centralized, standardized and digitalized management system, we have established a network covering some of the most economically developed cities in China, including Shenzhen, Guangzhou, Beijing, Chengdu, Suzhou, Changsha, Shanghai, Chongqing, Hangzhou and Wuhan. As of the Latest Practicable Date, we owned and operated 19 healthcare service institutions across China, including 17 clinics and two hospitals. In addition, as of the Latest Practicable Date, we operated four general practice clinics in Singapore and one general practice clinic in Malaysia. We intend to continue to expand our healthcare service institution network through organic growth and strategic acquisitions and penetrate additional New Tier-One Cities.
Guided by a whole-person care approach, we have adopted a whole-family care model integrating in-person and tele-healthcare services. Leveraging our range of specialties including pediatrics, dentistry, eye care, dermatology, ENT & general surgery, women’s health, and internal medicine as well as close collaborations among specialists, we are able to serve the diverse medical needs of patients and their whole families, which allows us to continuously increase patient satisfaction and generate cross-referral opportunities. We believe that the integration of in-person and tele-healthcare services brings us synergistic benefits to our healthcare service quality and enables us to consolidate medical resources and expand our patient coverage across regions in a cost-effective manner.
We attribute our leading market position to our adherence to patient-oriented principles and our corporate culture that upholds the essence of health care. Guided by the principle of evidence-based medicine, we strive to avoid unnecessary medical intervention and prioritize the well-being of our patients above all else. As a testament to the quality of our healthcare services, we have built a growing patient base. For the years ended December 31, 2022, 2023 and 2024 and eight months ended August 31, 2024 and 2025, the total number of patients who received services in our healthcare service institutions in China during the relevant period was 162,393, 201,335, 242,549, 190,685 and 212,180, respectively, while the total number of paid patient visits of our healthcare service institutions and tele-healthcare service platform was 529,829, 733,397, 905,825, 595,070 and 642,132, respectively. Our Patient Return Rate was 75.7%, 78.2%, 80.0% and 82.7%, respectively, for the years ended December 31, 2022, 2023 and 2024 and eight months ended August 31, 2025.
We are committed to attracting, retaining and cultivating a team of qualified and experienced doctors through our structured talent development framework, which we believe, combined with our stringent clinical quality control, are critical to ensure patient safety and satisfaction. As of August 31, 2025, we had 387 full-time doctors, who had on average approximately 15 years of post-qualification practicing experience and approximately 79% of whom practiced in top Grade A Class III hospitals before joining us.
We believe that our centralized, standardized and digitalized management system plays a significant role in ensuring the consistency of our service quality and the scalability and operational efficiency of our business. Our integrated information technology and data infrastructure provides us with versatility and robustness to support business operations across different regions and has enabled us to digitalize, streamline and standardize substantially all aspects of our business operations, internally for operational and financial management and externally for patient management and service offerings.
We are committed to leveraging advanced AI technologies to innovate healthcare delivery and operational efficiency. Our patient-first philosophy, supported by a highly qualified and dynamic medical team and an integrated care model spanning tele-healthcare platform and offline institutions nationwide, positions us to capitalize on emerging opportunities. Through strategic investments in digital infrastructure and key partnerships, we aim to enhance patient care and drive sustainable growth, reinforcing our competitive position in the evolving healthcare sector.
Source: Distinct Healthcare (02677) Prospectus (IPO Date : 2026/01/29) |