Hu Baohua Li
Venture capital seeks the last investment opportunity in the wave of mergers and acquisitions in health examination industry. On August 15, Carlyle officially announced its investment in Meinianda Health Industry (Group) Co., Ltd. (hereinafter referred to as Meinianda Health).
Physical examination, a seemingly simple business model, has won the heart of PE/VC. Since CDH first invested in the health examination industry in 2005, many PE/VC institutions have started to invest in this field in recent years. Carlyle's investment is considered by some insiders as the "last investment opportunity" in the health examination industry.
The first batch of PE/VC bets have seen the dawn of harvest. On July 27th, Ciming successfully passed the medical examination and will soon land in the A-share market. In fact, PE/VC capital has a great influence on the medical examination industry. They provided enough bullets for these companies to open up the market and upgrade their scale, and also left a deep mark of mergers and acquisitions.
"The Last Investment Opportunity of Physical Examination Industry"
On August 15, Yuan (Weibo), Managing Director of Carlyle Investment, announced another new case of Carlyle to the outside world. Beijing Carlyle Investment Center (Limited Partnership), a RMB fund, has invested in American Health, and obtained 13.5% equity.
"After contacting several organizations, we also finalized Carlyle," Yu Rong, chairman of Meinian Da Health, said in an interview. Physical examination is the main business of American health. Since CDH Venture Capital began to invest in Ciming Physical Examination in 2005, venture capital has sown seeds in this field. Now, when CDH Venture Capital is harvesting the harvest after seven years of hard work, Carlyle has resolutely chosen to bet now, which undoubtedly shows that the pattern of this industry is still uncertain.
A foreign venture capitalist in Shanghai commented that Carlyle's investment is the last investment opportunity in the medical examination industry.
Yu Rong, who is in charge of the health of beauty, actually has an investor background. He is also the chairman of Tianyi Investment Group. This investment company, established in 1998, has a fund scale of at least 2 billion yuan, and also invested in about 10 listed companies including Goldwind Technology (5.30, 0.06, 1. 15%), and set foot in many fields. A few years ago, he decided to focus more on the medical examination industry, which highlighted the great attraction of the medical examination industry to capital.
Around 2006, Yu Rong began to gradually focus on the health industry, and the medical examination business was his breakthrough point. He pushed his way through the crowd and gradually turned a lot of money invested by Tianyi into the health industry. At that time, Yu Rong's investment in the medical examination industry became his first trophy in the medical and health industry. In 2006, Tianyi Investment's company acquired 20% equity of State Guest Physical Examination from Shanghai Municipal Health Bureau. At that time, the ambassador opened the first physical examination center in Xikang Road, Shanghai, with an annual turnover of more than 40 million and a profit of 10.
It is with this opportunity to observe the health examination format at close range that he has increased more confidence in this industry. In his view, the urban population of China is close to 700 million in 20 1 1 year, of which sub-health population accounts for 70%, reaching 500 million, while only 20% of them enjoy regular physical examination services, that is, 1 100 million people. These people not only mean that the physical examination industry has huge room for growth, but also become the flow of the medical and health industry.
This year, Yu Rong founded Mei Nian Health, the predecessor of Mei Nian Health, and aimed at the health examination industry. After more than five years, the healthy passenger flow in the United States has doubled. Yu Rong revealed: "In 20 12 years, it is expected to serve more than 3 million customers, and it has the most extensive network of physical examination centers in the industry. There are 83 physical examination centers in 4 1 city, of which nearly 20 will be officially opened before the end of the year." Based on this scale, Meinian Health has become the first echelon in the medical examination industry.
"With the development of China's aging population, people are paying more and more attention to their health, and the demand for high-quality preventive health checks is also increasing." Feng believes that the prospect of a big health industry can be expected.
In addition to the high growth of the industry, another exciting figure for investors is that the gross profit margin of the medical examination industry has reached 40%-50%. According to the information disclosed by Ciming's physical examination, during the reporting period, the average comprehensive gross profit margin of Ciming's physical examination was about 43.68%. The profit level of the industry is very attractive.
According to Yu Rong's public disclosure, in 20 1 1 year, Mei Nianda Health achieved national sales of 1 billion yuan, with a compound growth rate of 30%. It is planned to realize annual sales of 2 billion yuan and profit of more than 200 million yuan in 20 15 years.
The role of capital
In fact, PE/VC capital's favor for the medical examination industry is not a day.
Ciming, who has just passed the preliminary examination of the CSRC, has a longer list of shareholders, including at least 10 investment institutions (individuals) such as CDH Venture Capital, Ping An Innovation Capital and Tiantu Venture Capital, showing a strong PE imprint. CDH Venture Capital's first investment in Ciming Physical Examination was even as early as 2005. After waiting for 7 years, I finally waited for the listing of Ciming physical examination. According to the prospectus of Ciming Physical Examination, by the end of last year, 33 physical examination centers had been set up in 1 1 region, with a total number of medical examinations exceeding 5.59 million.
Another medical institution, Aikang, also has many PE institutions to protect themselves. In 2007, it has received $25 million in venture capital from six institutions including Merrill Lynch, ePlanet, Walden International, Shanghai Venture Capital and Zero2IPO Group.
In fact, the technical barriers in the medical examination industry are not high, and the scale of brands and chain outlets is a very important competitive factor. It is also a capital-intensive industry. Therefore, the role of PE/VC has become decisive, especially in the process of rapid staking in first-tier cities, which requires a lot of capital intervention, and mergers and acquisitions have become a shortcut to rapid large-scale integration.
Mei Nianda Health has such a huge chain network, which also comes from the rapid merger and integration in the past two years. In the second half of last year, Mei Nian Da Health was formally merged by Mei Nian Health Industry Co., Ltd. and Da Health Technology Health Management Co., Ltd.; Since then, Mei Nianda Health has successively acquired Beijing Lu Shengyuan Physical Examination Center, Xi Ankang Cheng Chain Physical Examination Center and Shenzhen Ruigeer Health Management Company this year. With the help of the power of capital and frequent mergers and acquisitions, the scale of Mei Nianda's health exceeded Ciming's physical examination in one fell swoop.
The above-mentioned foreign VC people said that if they only rely on their own profits for rolling development, it is difficult to surpass the current industry bosses Ciming and Aikang in terms of beauty and health.
In fact, Ciming's medical examination waiting for listing is also taking the acquisition route to speed up the layout. In 2008, Ciming invested nearly 654.38+0.5 billion yuan in the field of physical examination, and successively acquired three physical examination centers in Zhong Bai and eight physical examination centers in Wo Jia. This move has increased the number of Ciming physical examination outlets by 33, with a growth rate as high as 50%, making it easy to cut into areas with broad market prospects such as Shenzhen and Wuhan.
Complementing Ciming's continuous mergers and acquisitions is the continuous entry of PE/VC capital. Ciming physical examination from 2005 to before listing, a total of up to six rounds of private financing, with a total capital of 220 million yuan.
After obtaining capital support, a large number of self-built stores are also one of the ways to expand rapidly.
According to the information released by Ciming's physical examination, the cost of building a new store in a first-tier city is about100,000-20 million, which is mainly invested in venue leasing, decoration, equipment and recruitment of doctors. Buying equipment and hiring doctors account for 60%-70% of the cost, venue rental accounts for 10%-20% of the cost, decoration accounts for 10%, and the rest is marketing expenses. The rapid expansion of its own stores puts forward requirements for the capital strength of enterprises.
Wang Cen, a partner of Tiantu Venture Capital, said: "The chain projects I invest in include both medical projects and food industries. Although the span is large, as long as it is a chain industry, the essence is the same. The' essence' pays the most attention to the degree of standardization, and the' rationality of input and output' is also very important, which is easily overlooked. "
Through mergers and acquisitions, some small regional medical institutions have been integrated, and with the help of PE capital, large institutions have quickly established new stores, and the scale effect of chain stores has emerged, gradually forming a nationwide situation in which the United States is the top three in health, Ciming physical examination and Aikang. It is also for this reason that there are fewer and fewer opportunities for PE/VC to invest in this industry.
The first batch of capital has been harvested. On July 27th, Ciming's first application for medical examination was approved, and it won the "first share of medical examination", which also gave the outside world a glimpse of the ultra-high profit level of the medical examination industry. Aikang and Mei Nianda Health are also targeting the capital market, and Yu Rong has repeatedly publicly stated to the media that he plans to list on the A-share main board from 20 14 to 20 15.