Private Health Examination Three Giants "Happy Revenge"

"321" is not only a slogan for simply calling "eggplant" to take pictures, but also a digital track left by China's private health examination giant for seventeen years.

At that time, the three big private health examination giants, such as Tsing Ming, ai Kang, and Mei Tai health, had frequent frictions and business wars. Entrepreneurs Han Xiaohong, Zhang Ligang and Yu Rong were impregnated for many years in the physical examination industry. Now the wind and clouds are gone, but the past is not like smoke.

With the announcement of the US health year, the private health examination giant from "War Within Three Kingdoms" or "one family".

In December 19, 2019, the US health released a notice on the completion of the agreement on transfer of shares. Its shareholders and concerted persons completed the transfer of shares to Ali network and its concerted action. In March 2019, ai Kang, the main body of the company, completed the merger and acquisition financing, and Ali was one of its important shareholders.

In the completion of a private medical institution in Ali, many public hospitals also cooperate with ALI health in physical examination. This news has not been widely spread by Ali health, but the industry has sniffed out the awakening of the "Lion", and believes that public hospitals are also seeking changes in physical examination.

A senior Chinese journalist who has long been following the development of China's physical examination industry pointed out to the twenty-first Century economic report that private medical institutions have been in a state of "survival", and far from being fully competitive with public hospitals. However, because the physical examination space is far from reaching the "smallpox board", both sides have great room for development.

"Three giants"

Han Xiaohong, Zhang Ligang and Yu Rongsan, who had different backgrounds, entered the medical circle because of their respective opportunities and met in the same subdivision area.

In front of the public, the three are of a distinct character. Han Xiaohong is a passionate, jumping woman. With the openness of the northeast people, she can hold the media for a few hours without any taboo. She always reveals a little "surprise" and "frightening" from time to time. Some people have joked to the twenty-first Century economic news reporter that their PR team is always ready to put out the fire, but because she is a doctor, she is able to capture sensitive information very professionally and make various innovations.

At the age of 27, Zhang Ligang gave up studying for Harvard Medical Doctor and returned to Sohu. Perhaps because of the southern accent, every time when talking to the media, it is always a "stubborn", even on some issues, giving people a kind of "never die" persistence.

Yu Rong, who was the oldest among the three entrepreneurs, was born in the same year as Zhang Ligang. He graduated from the Communications Engineering Department of Shanghai Jiao Tong University in 1993 and invested in the physical examination industry. In quiet times, Yu Rong gave people a sense of "abstinence" president. Maybe he was a source of investment and made people feel more keen.

The three private health examination conducted different stories under the guidance of three different entrepreneurs.

Han Xiaohong was the first one of the three to go to the physical examination industry. Han Xiaohong told the economic news reporters in twenty-first Century that the reason why she had no intention of going back and insisting on so far was related to her experience at that time. At that time, as a oncologist, she often had to face many patients with advanced cancer. Because they did not have a physical examination, they did not find it early and could not be cured at last. When studying in Germany, she found that the physical examination abroad had been widely accepted by the public. She also hoped that the domestic people could also do the early detection and treatment of the disease, and chose to enter the physical examination industry.

In March 28, 2002, with his medical background, Han Xiaohong opened the first health examination institution of Tsing Ming, and opened 3 physical examinations in 2003 and 2004. In September 2004, Hu Bo and Han Xiaohong integrated their 4 Tzu Chi Health Examination clinics to form a medical management company, Tzu Chi, Beijing. In the same year, Tzu Chi in Beijing completed the first round of financing of 35 million yuan from CDH investment.

In 1999, Zhang Ligang founded elong and served as CEO. In 2004, Zhang Ligang founded ai Kang network, and set up a platform combining IT information technology with traditional medical treatment. In 2007, ai Kang and the Shanghai national health examination merged to set up the health care management group, providing clients with comprehensive health management services such as physical examination, medical arrangement and private doctors.

In the course of development, Tsing Ming's check-up and ai Kang are full of "fighting and fighting" in the market. Earlier, Tsing Ming, who was in charge of physical examination, told the twenty-first Century economic news reporter that ai Kang often imitated their business and would take business in the region. Ai Kang also revealed that some Tzu Chi sales staff had taken the interest rate of ai Kang's customer orders in private for their performance.

Yu Rong, an investor who earns the first barrel of real estate, is also following the pace of Han Xiaohong and Zhang Ligang. In August 2006, Yu Rong set up his first physical examination center, the flagship store of Shanghai Mei Mei Xiao Qiao Road, and set foot in the physical examination industry. However, in the development of the following years, the direct competition with the former two is not very big, because Yu Rong's physical examination center is distributed in many cities below three or four lines.

"Two dominant"

Although there are all kinds of commercial competition among the three giants, the pattern is still very fixed for a long time. The ranking of the market seats is Tsing Ming physical examination, ai Kang state guest, and American year old health.

But the power of capital breaks the calm and ripples throughout the industry.

Among the three giants, TSE Ming was the first to attack the capital market, but its capitalization path was not smooth. Han Xiaohong also told the economic news reporters in twenty-first Century that he was "helpless". "When we first started declaring, the regulatory authorities did not divide the physical examination industry, and we were discussing the status of the ownership plate."

In March 2011, after the failure of the gem listing, it turned to small and medium-sized boards. In July 2012, TSE Ming applied for a trial listing of small and medium sized boards, which thought it would be able to ring the bell immediately but came to the IPO stop news. In November 2012, A shares IPO suddenly stopped. Han Xiaohong caught up with the eighth and longest IPO suspension in the history of A shares.

And this is almost two years.

After the IPO was restarted in 2014, the medical examination successfully obtained the IPO approval and was about to start buying in January 14, 2014. But in the early morning of the roadshow, TSE Ming's health checkup announced that "according to the spirit of the China Securities Regulatory Commission's" measures to strengthen the supervision of IPO "(SFC Announcement No. 2014] No. 4) issued in January 12, 2014, the issuer and the lead underwriter decided to postpone the publication of the Limited by Share Ltd's IPO announcement by consultation. The expected release schedule disclosed in the original preliminary inquiry and recommendation announcement will be adjusted. "

Tsing Ming's health checkup plan was again stranded.

In the same year, in 2014, Zhang Ligang and Yu Rong, who were unwilling to lag behind, began to seek listing.

In March 5, 2014, ai Kang ambassador and Mei Da Health announced the listing plan. The SEC has disclosed that ai Kang has formally submitted its application to IPO to be listed on NASDAQ. In April 9, 2014, ai Kang made its debut in the US Nasdaq, issuing a price of 14 US dollars, issuing a total of 11 million ADS, of which the old shareholder reduced 3 million 400 thousand ADS, and ai Kang's company increased 7 million 600 thousand ADS, the company's actual financing amounted to 100 million US dollars, valued at 900 million US dollars.

At that time, the US Health announced that it would be listed on the A stock board in 2015. In August 2015, the Jiangsu Stock Exchange (002044.SZ) completed its listing on the main board of Shenzhen Stock Exchange. In January 2016, three friends in Jiangsu were renamed the healthy year of the United States.

Many times the market failed to take care of the physical examination, facing multiple pressures such as capital withdrawal, performance and so on. According to the data of CI Ming, in 2013 1-9, the business income of Tsing Ming examination began to decline significantly. The current operating income was 510 million yuan, and net profit was only 33 million yuan, a decrease of 17 million 877 thousand and 700 yuan compared with the same period in 2012, a decrease of 34.95% over the same period. In the past 2009-2011 years, TSE Ming's physical examination almost maintained an annual performance of 30%, with a turnover of 567 million yuan in 2011 and a net interest rate of 15.14%.

In 2014, Tsing Ming physical examination began to seek a way out for mergers and acquisitions.

Han Xiaohong later told the twenty-first Century economic news reporter that when the decision was announced, an insurance company, a reagent diagnostic company, a hospital and so on came to see her, and finally decided to find a colleague.

Ai Kang Guo also looked for Han Xiaohong at that time, but because of internal reasons, ai Kang Ambassador failed.

Han Xiaohong gave an overseas call to Yu Rong, who was attending the US Conference, and informed him about the merger. Yu Rong flew back home overnight. Han Xiaohong and Yu Rong met at the CI Ming Ya building in Tun Road, Beijing. Within 48 hours, the two sides decided to cooperate.

When announcing the news, a senior manager of Tsing Ming told the economic news reporters twenty-first Century that the United States would not interfere in the business development of Tsun Ming's physical examination, but also retain the brand independence of Tsing Ming's physical examination.

According to the annual health plan of the US, after the acquisition of CI Ming, the annual health and Tsing Ming health examination will become two subsidiary companies of the listed company, with their respective boards of directors and remain independent in the management team, sales, finance and human resources. The two brands will also be differentiated: "the great health of the United States" will focus on the development of the three or four line cities on the basis of consolidating the original advantage areas. "Tsing Ming physical examination" focuses on continuing to consolidate and enhance the advantages of traditional areas such as Beijing.

The development in recent years has also proved that Yu Rong has done a great deal of work in major decisions. It is understood that at present, TSE Ming's physical examination is more of a "cultural unity" than that of the United States.

After the acquisition of CI Ming medical examination in the US year, the domestic private medical examination market was transformed from "three points of the world" to the two largest companies of ai Kang and the US health.

At that time, in an interview, in twenty-first Century, the economic news reporter asked Zhang Ligang about the impact of the rapid development of the United States on the rapid development of the health of the United States. He replied that the average income scale and per capita income of ai Kang were still higher than that of its competitors and could provide better services for customers.

"One family Pro"

Ai Kang successfully became the first Chinese health examination in the United States. However, in 2015, stocks were frozen overseas and share prices were low. Ai Kang opened the process of privatization and plans to return to the domestic A share market in the US stock market. This is less than 18 months from ai Kang's listing in NASDAQ.

At that time, Zhang Ligang told internal staff: "although China's capital market has been in a low ebb, it has been decided that the privatization of ai Kang is a decision after careful consideration. It is the decision to bring AI into the future and build a bigger platform."

In August 2015, ai Kang issued an offer price of $17.8 /ADS, corresponding to the market value of $1 billion 165 million.

Yu Rong, who is good at dancing and dancing, is keen to seize this opportunity.

In November 2015, investment institutions such as the United States health and Beijing Sequoia Kun Tak Investment Management Center issued a privatization offer to ai Kang, and raised the price two times, raising the privatization price to $25 /ADS. This price is 40% higher than Zhang Ligang's offer.

In the face of the acquisition of competitors, in order to stop the hostile takeover of Jiangsu's three friends and prevent Jiangsu friends from buying or buying the shares of ai Kang from the two tier market, ai Kang was forced to throw a poison pill plan after the new year's Day holiday in 2016, and immediately introduced a strong support group, including Alibaba and China Life Insurance, to deal with the issue of privatization.

In the process of privatization, Zhang Ligang is melting Yu say no. In a group visit, Zhang Ligang told reporters in twenty-first Century economic report that if there is only one company in one industry to dominate or even form a monopoly, it will be a tragedy for consumers to let consumers have no choice.

For this reason, apart from offering the poison pill plan, ai Kang guest also burned the two sides' War to the court and the Ministry of Commerce. In 2016, the two years of "anti monopoly" were reported by ai Kang, aiming at the acquisition of CI Ming in the United States. On the grounds of infringing trade secrets, ai Kang filed a lawsuit against the US health and demanded compensation for all losses totaling 50 million yuan. Subsequently, the US public responded publicly: "the United States year health is resolutely opposed to slander the industry, malicious speculation of unfair competition."

In a statement issued by the US health company, according to the data, the combined market share of the top three institutions in the market, including American health, TSE Ming, and ai Kang, is only 2.6%. Health examination is a fully competitive market. There are thousands of public hospitals and other professional institutions in the country to participate in market competition. There is no factual basis for so-called monopoly.

Ma Yun finally brought Yunfeng fund and other strong war to break the deadlock. In June 2016, ai Kang announced that the company had received a letter of recommendation from the Yunfeng fund privatization proposal. The Yunfeng fund would buy $20 to $25 a share to acquire all the shares issued by ai Kang.

On the evening of January 14, 2019, suning.com announced that its sunning international plan and Yunfeng IK Co-invest GP and Ltd. jointly contributed to the establishment of Yunfeng IK Co-invest, L.P. (hereinafter referred to as the "fund"). The scale of the fund is not more than 122 million US dollars. The fund will be used to invest in IK Healthcare Holdings Limited and its associated companies (collectively known as "ai Kang series entities").

Real "opponent"

Ali completed the private medical examination "a pro" action, public hospitals "physical examination" is also embracing Ali.

On November 2019 23-24, at the 2019 Internet + Health Management Summit jointly organized by Ali health and First Affiliated Hospital of Zhejiang University School of medicine and the Internet health management branch of China Health Management Association, Ali health reached a number of public hospitals with the First Affiliated Hospital of Zhejiang University medical school (Zhejiang first hospital), the Second Affiliated Hospital of Zhejiang University Medical College, the Second Affiliated Hospital of Nanchang University, Zhejiang Province People's Hospital and other public hospitals.

Since January 2020, according to the trend of internet physical examination consumption, the health examination centers and ecological partners jointly participated by Ali health have explored the relative standardization items of physical examination to better match the demand and supply.

This news has not been widely disseminated in the industry, but in the industry view, this is actually the signal of "Lion" regained consciousness.

A senior Chinese journalist who has long been following the development of China's physical examination industry has reported to the twenty-first Century economic analysis reporter that although there are many kinds of news in the private health examination industry, in fact, the market share has not been large for many years, and the public hospital's physical examination accounts for the main market share.

"There is no authoritative data for the specific private sector to occupy the market share, but according to the industry estimates, the share of the public hospitals in the overall physical examination is 80%-85%, while the market share of the private medical institutions is 15%-20%, or even less." The senior official said.

According to CNBData X Ali health "2019 online physical examination consumption report" data show that the number of public hospital physical examination and market size has been increasing, sales growth rate reached 56%, higher than the overall growth rate, and each unit price is higher than the private medical center.

In the view of these senior people, because people are increasingly focusing on health and prevention, the market for physical examination is far from reaching the ceiling, and is still blue ocean. "They can defeat each other themselves, not competitors."

In fact, the service of public health examination institutions has been criticized, poor service attitude, bad physical examination environment and so on, which makes the public experience poor. In recent one or two years, the private sector has also exposed various scandals, so that the public has questioned the attitude of some institutions, and there has been a crisis of confidence.

For example, in July 2018, there were a series of problems such as the name of the retired doctor, the employee's undocumented appointment, the forced staff to brush the credit card, and the physical examination card. Affected by this, the US health market value evaporated 16 billion 500 million yuan in 6 trading days.

In December 2018, at the "2018 Chinese enterprise leaders annual meeting", Zhang Ligang exposed the scandal of "physical examination and fake physical examination" in the field of physical examination, for example, "colleagues will use nurses to fake doctors to see ultrasound".

A brokerage analyst told the economic news reporters in twenty-first Century that physical examination has a strong medical attribute and is a typical knowledge intensive industry. The private medical institutions need coordinated development of operation management ability, talent reserve and capital operation. If the above conditions are not met, the rapid expansion will cause operational risk and quality of service decline. Once the brand reputation is damaged, it will directly affect business development, resulting in a cliff breaking performance. "The private sector itself has great room for improvement, and there is no need to compete with the public hospitals positively, but if it can not be self disciplined, it will affect the development of the whole industry."

The competition has just started, but the ceiling is far from enough, and the story of the medical institutions will continue.