Impact:

After the state allowed social capital to enter the medical industry, various private capitals have entered one after another, and private hospitals have accounted for half of the number of domestic hospitals.

After more than ten years of initial development, private hospitals have also begun to move closer to the capital market. The New Third Board, which has relatively loose operating conditions for enterprises, has become a paradise for private enterprises.

The reporter’s statistics found that currently 34 medical companies listed on the New OTC Market in the health industry are all privately owned. As of April 29, 16 private medical companies are still waiting in line for review. Since the beginning of this year, the stock transfer system has maintained a listing rate of about 3 companies per month.

These private hospitals that have entered the capital market have revealed to the public the tip of the iceberg of this controversial group. The reporter counted the operating data of 34 listed private medical companies. In 2015, the average gross profit margin of the 34 companies was 49.79%, among which the highest gross profit margin for beauty and plastic surgery companies could reach 75.26%; in the same year, the gross profit margin of A-share pharmaceutical industry companies was 46.35%.

While the gross profit margin is high, advertising expenses remain high all year round due to the high reliance on advertising in exchange for patient visits. 34 companies achieved a net profit of 274.3 million yuan in 2015, but their advertising expenses during the same period were as high as 273.8 million yuan. This also means that for every 1 yuan of advertising fees, there is 1 yuan of net profit.