Every reporter: can Yang Every intern reporter: Lin Zichen
Seven years ago, riding on the policy of social medical policy, the capital medical group a foot into the high-end specialty hospital track, has laid out gynecology, pensions, orthopedics and other lucrative track; seven years later, a succession of losses with 1.7 billion of debt, the capital of the health care quietly sold itself.
At the end of the listing disclosure more than a month later, in mid-July, the capital of medical 73.13% equity asset transfer transaction picker has been determined, but who will take over this former medical pioneer has not yet been announced. The transferred assets include a high-end tertiary maternity and child hospital in Beijing and a portion of the Hong Kong stock company that mainly operates high-end clinics.
"Going as far as the Bejing Stock Exchange is also an indication of desperation." An investment interested party exclaimed. Before hanging on the NSE, the capital of the medical has many times "self-help", but with China Resources Medical Group, Phoenix Medical Care, Tongrentang Group, State Pharmaceutical Group and other more than a dozen organizations docking ended in failure.
"Daily Economic News" reporter through multiple interviews and investigations found that, from its inception, the capital of the medical has always been aimed at the old, young, women's track, holding high-quality resources, as well as specialty hospitals, high unit price advantage, but ultimately, in the loss of low-key sellout.
7 years in a row, the first to run a medical forerunner to sell
Capital Medical was once regarded as a social medical forerunner, but was established seven years, but has been in the loss.
Now, the capital of the health care had a handful of "good cards" to be eventually sold because "the main business is not focused, investment losses are serious". Beijing Municipal State-owned Assets Management Co., Ltd. in the Beijing Equity Exchange at a price of 259 million yuan, listing the transfer of the capital medical 73.13% stake in the capital of medical to seek a receiver.
The capital medical group was born in the social medical wind mouth.
Around 2012, the state on encouraging the social running of medical policy documents have been issued, the policy dividend to promote the wave of social running of medical, all kinds of capital swarmed into the medical track. In April 2014, Beijing Municipal State-owned Assets Management Co., Ltd. initiated the establishment of Capital Healthcare Industry (Group) Co.
Capital Healthcare from its inception, backed by a strong backing, to do maternal and child, pension, high-end specialties that the outside world seems to be the most profitable business.
In the second year of its establishment, Capital Healthcare, with the aim of introducing external resources, optimizing its corporate governance structure, and enhancing its vitality and competitiveness in the market, successfully introduced Shenzhen Qianhai Everbright as a strategic investor, increasing its capital by 549 million yuan, and expanding its registered capital to 1.367 billion yuan.
At the beginning of the birth of the capital medical carries the consumer upgrading background, Beijing state-owned companies for high-end specialized medical track ambitions.
At that time, Capital Healthcare was joined by rivals such as China Resources, CITIC, and Peking University Healthcare. The difference is that these companies have chosen to layout general hospitals to compete with public medical institutions, while the capital medical group is more inclined to take the road of differentiated specialty development.
According to the person in charge of the capital of the capital of the medical return to Jinghua's statement, the establishment of the beginning, the capital of the medical plan within five years in the existing medical industry, such as women and children, rehabilitation, and other medical industry investment on the basis of continuing to invest in the construction of a number of first-class international standards, and nationally renowned tertiary hospitals to run pilot hospitals, to promote the process of the national health care reform and to meet the needs of the masses of diversified medical needs. The company's main goal is to provide the best possible service to its customers.
But such a backing tree, based on the popular track of the enterprise, in the late 2020 fell into the fate of being hastily off.
In November 2020, Beijing State-owned Assets Corporation (SASAC) received feedback from the Beijing Municipal Committee's tenth round of inspection. The feedback clearly pointed out that the main responsibility of the Beijing State-owned Assets Corporation is not focused on the main business, health care and other industries to invest in serious losses, and asked to accelerate the capital medical group to exit the work.
Three months later, the Beijing State Capital Corporation held a board of directors, decided to complete before June 30, 2021, the capital medical group listed withdrawal.
With the disclosure of the relevant information listing, this once welcomed the birth of the policy dividend to run the medical front-runner's actual business situation also surfaced.
After deciding to get out, Capital Healthcare began to deal with fixed assets as well as long-term investments held, and in the first four months of 2021, Capital Healthcare's cash inflow from investing activities increased to 1.092 billion yuan from 0.10 billion yuan in the whole year of 2020, and reversed the loss on the realization of revenue of 156 million yuan, with a net profit of 271 million yuan.
But looking at financials from previous years, Capital Healthcare's basic operations have stalled.
From 2018 to 2020, Capital Medical's assets have shrunk from 2.273 billion yuan to 1.484 billion yuan, but its liabilities have gone all the way up to 1.834 billion yuan, which is already insolvent. At the same time, the performance of the capital medical performance all the way down, net profit value for three consecutive years are negative, and the scale of loss is expanding year by year, 2018 ~ 2020 three years, the capital medical lost 1.292 billion yuan.
Seven years after the establishment of the final insolvency, the capital of the medical helpless towards the end of the sale.
July 12, the reporter contacted the capital medical side, the other side said that the delisting party has been determined, but it will take some time before the announcement.
High-end women's and children's hospitals in debt, or quality assets?
Capital Healthcare's main debt, all from the love of Yuhua Hospital, but even if it is "sold", Capital Healthcare is not willing to "give up" the love of Yuhua Hospital.
The exterior of the hospital.
According to the requirements of the capital medical, the transferee in the takeover of the capital medical, must use the funds on the books to repay the loan of the hospital and to ensure the continued operation of the love of the Yuhua. Financial data show that as of April 30, the liabilities of Love Yuk Wah Hospital has reached a total of 1.76 billion yuan, while the staff of the North Stock Exchange revealed that the transferee will eventually have to bear the cost of about 200 million yuan.
Aiyuhua Hospital is one of the earliest explorations of high-end specialty hospitals by Beijing State Capital Corporation (BSC), which invested in the construction of the hospital in 2012, and then transferred the tertiary-level women's and children's specialty hospital to Capital Healthcare at no cost after Capital Healthcare was established in 2014.
Backed by a big tree, AIYUHUA's resources are not bad, and at the beginning of the opening, it has carried out technical cooperation with Beijing Maternity Hospital, Capital Institute of Pediatrics, and Beijing Children's Hospital, and quickly established its brand.
Currently, AIYUH is the only tertiary specialized hospital for women and children in the Beijing Yizhuang Economic and Technological Development Zone. At the same time, according to the content of the "Prohibited and Restricted Catalog of New Industries in Beijing (2018 Edition)", it is clearly stated that new tertiary hospitals are prohibited within the fifth ring road in Beijing. That is to say, in terms of geographic location, Aiyuhua has gained a unique advantage, located in the national economic development zone of the advantages of medical services and the scarcity of resources more and more prominent.
In early June, the "Daily Economic News" reporter came to love Yuhua Hospital, a patient out of the hospital told reporters, compared to general hospitals, love Yuhua in the environment, service and efficiency of the patient are better, but the corresponding price is also much higher. Love Yuhua Hospital in the United States group purchase package shows that a natural childbirth package containing three nights of housing, childbirth guide and painless delivery and other items, the price of 36,800 yuan.
With no new competitors in the neighborhood and high-end positioning that guarantees high pricing, it's not too much of a stretch to say that such a high-end gynecology hospital is considered a quality asset for the capital's healthcare.
But the fact is, this is a high-end gynecological hospital, but has been in the quagmire of insolvency since its inception.
In terms of operations, Aiyuhua's business situation is not bad, Aiyuhua's revenue from 2016 to 2019 climbed year by year, from 69.05 million yuan to 156 million yuan, and in 2020 slipped to 108 million yuan.
Love Yuhua's performance is improving step by step, but why did it come to the point of being sold?
The original capital investment in Aiyu Hua Hospital was a "large debt, small share" capital structure.
In 2013, in the process of preparing for the construction of Aiyu Hua Hospital, Aiyu Hua's predecessor, Guotong Xintai Investment Management Company Limited, borrowed 480 million yuan from Pudong Development Bank for the purpose of the Aiyu Hua project. At the same time, it adopted the asset-heavy operation mode of building its own hospital building.
In 2015, the first year of Aiyuhua's opening, the scale of its borrowing reached 1 billion yuan, and the investment in fixed assets also reached 1 billion yuan, with the amount of interest depreciation reaching a scale of 80 million yuan per year. After this, the scale of borrowing gradually climbed due to the constant use of borrowing new and repaying old, and as of 2020, the borrowing was 1.6 billion yuan, and the scale of annual interest depreciation was 116 million yuan.
In other words, from the first day of operation, love Yuhua is in the predicament of insolvency, so far has not been alleviated, although with the expansion of revenue, losses are gradually narrowing, but the investors behind can not wait.
Medical investment step by step, orthopedic hospital project income by rent
Not only love Yuhua, the capital of the medical layout in various tracks in the past few years, and ultimately, most failed to "blossom and bear fruit".
The vision of Capital Healthcare at the beginning of its establishment was to develop into a modern medical and healthcare industrial group with medical services as its core, covering all areas of the healthcare industry. In the past seven years, it did work in this direction, investment map throughout Beijing, Jiangsu, Zhejiang, Hong Kong, but now only "broken walls".
Cartography: Liu Guomei
And a closer look at the capital of the medical investment project "fate of the direction", it is not difficult to see a lot of **** sex.
The capital medical platform under the project, in addition to the Huimin Hospital, the first medical UH is the capital of medical transfers of equity or with other investors *** with the establishment of equity, including the love of Yuhua Hospital, Yingzhi rehabilitation and orthopedic hospitals, including half of the project is directly from the hands of the state-owned companies to take over. These projects, too, are mostly specialty hospitals that do business with women, children and the elderly. For example, Yingzhi Group is committed to the deep integration of rehabilitation and medical care with elderly care; Huimin Hospital provides diagnosis and treatment and preventive health care services with Chinese medicine characteristics for people aged 0 to 18.
April 2021, the exterior view of Huimin Hospital.
In addition, high-end medical projects are also within the scope of Capital Healthcare's investment. In addition to the high-end Aiyuhua Hospital, in previous media reports, the founder of the UH clinic, Sheng Bei's team, reached a cooperation with Capital Healthcare for the first medical UH precisely because of its experience in the operation of medium- and high-end clinics.
And Capital Healthcare's wholly owned subsidiary, First Medical International, as a cornerstone investor, subscribed for a 6.88% stake in Hong Kong's Yingjian Medical (01419, HK) in 2016, becoming its second largest shareholder.
Investing in Yingjian Medical, Capital Healthcare was motivated by the idea of "taking the more mature approach of Hong Kong's general practice clinics to first-tier cities or sub-tier 1s in the mainland to do the incubation," but at an exchange organized by the Bejing Stock Exchange, Capital Healthcare's Mo Fan admitted that the attempt "didn't turn out so well". "The result is not that good".
The experience was not learned, and the investment also faced a floating loss, when the combined investment cost of Capital International was HK$35.46 million. By March 30, 2021, the share price of Yingjian Medical was HK$0.79 per share, and the value of the equity held by Capital International in Yingjian Medical was HK$200,306,000, plus Capital International's book cash of HK$8,202,300 (including cumulative dividends of HK$2,789,800), for a combined valuation of HK$2,823,300,000.
This investment, which took more than five years, not only did not increase in value, but instead suffered a floating loss of HK$7,221,700.
Whether it is the old women and children of these specialized hospitals, or corresponding to the high price of high-end hospitals, the capital of the medical aim is basically a lucrative business. According to the statistics of the Health Commission, from 2015 to 2019, the revenue growth rate of orthopedic and maternity specialty hospitals reached more than 12%.
But Capital Healthcare didn't make much money from these businesses, and most of these projects are now in the red, or even teetering on the brink of liquidation.From 2018~2020, Yingzhi Group's net losses will be 2018.18 million yuan, 22.8679 million yuan, and 169 million yuan, respectively; and Huimin Hospital's net losses will be 11.2883 million yuan, 800.99 million and 835.93 million yuan.
Currently, the land properties of Capital Medical's Shijing Xintian and Aiyuhua have been divested, and Huimin Hospital, Shouji Youhe, Orthopaedic Hospital, Haiwu Women's Project, and Single Store Project are pending disposal.
It is worth noting that Orthopedic Hospital, Hai Women's Project and single store project "rotten" are due to the rent "can't negotiate" lead, which, orthopedic hospital is received after the environmental penalties have been shut down, have not been done together! The hospital business.
However, despite the abandonment of the main business, orthopedic hospitals have found another way to make money. Since 2019, the orthopedic hospital began to rent their own floor to the outside sublet, identity from a hospital into a "chartered public". Until the 2020 epidemic attack, tenants did not pay rent on time, orthopedic hospitals are unable to pay rent to the property owner on time, the maintenance of a year-long subletting business to several lawsuits ended. The Orthopaedic Hospital, which has been struggling to survive, was eventually turned into a disposal state because of the difficulty in collecting rents, which is saddening.
A handful of old women and children, a handful of high-end, in the gold track of the capital of the medical but why is always misinvestment?
"(A few investment failures) are not subtle management problems, but major strategic mistakes. This thing is not actually as profitable as predicted, and the cost and investment of the money-making track actually requires a lot of capital." A project interested party who did not want to be named told reporters that, probabilistically speaking, investment failure is very normal. Although many things "should be investigated in advance, but some can be investigated, and some of the situation in the change is not easy to say".
Some fund managers believe that although Capital Healthcare's state-funded background may have given it some constraints in finding a partner, its failure to get to this point is not dissimilar to the failure of an ordinary business, which is due to a combination of industry and management reasons.
However, whether it's a lack of investigation, management issues, or just bad timing, these complex leases are putting Capital Healthcare in a whirlwind of litigation. The NSE project document shows that, in addition to filing for bankruptcy reorganization/bankruptcy company involved in the lawsuit, the capital medical is currently involved in 13 lawsuits, of which 2 for the lease contract dispute, involving more than $200 million.
And these, are the future of the new entry investors need to consider.
April 2021, outside Beijing Yingzhi Rehabilitation Hospital.
The search for investors has been unsuccessful, who will take over?
In fact, in the 3rd year of its establishment, Capital Healthcare started a self-help. Through the docking of more than a dozen organizations, including China Resources Healthcare, Phoenix Medical Care, the capital of the medical had proposed to introduce a strategic investor to break through, out of the loss quagmire, but ultimately failed to come to fruition.
2019, carrying nearly 500 million losses, the capital of the medical plans to reorganize again, contacted the Tongrentang Group, Sinopharm Group two companies, ultimately to "reorganization transfer difficulty, difficult to participate in the cooperation" once again failed.
A reluctant party to the project intends to be named that, in 2017, began to seek a strategic investor, the capital of the medical may have begun to lack of money. From the capital medical income and expenditure situation, year after year losses, and the loss is getting bigger and bigger, several of the largest projects have reached the point of poor operation.
After several low-profile search for investors unsuccessfully, the capital of the medical stake on the Bejing Stock Exchange, in the view of the above project interested parties, "it is now to the Bejing Stock Exchange this step, also shows that there is no way out".
The reason why the intentional party is willing to take over, but also more for strategic considerations. The above investment intention party frankly, "for the first medical, we may pay more attention to strategic investment, and not for simple financial returns. In fact, for the average investor, investing in this kind of project is not to make money, but more importantly to expand their business layout, to achieve certain volume and scale.
The Daily Economic News reporter was informed that in early June there have been three or four interested parties to pay the deposit.
Seven years, for the capital of the medical seems to have not come to the "results" of the time. Although the financial data from the current normal operation of the love of Yuhua and Yingzhi Rehabilitation, since 2018, the revenue scale of the two organizations are expanding year by year, the loss is also narrowing, but the capital medical can not afford to wait.
Running a medical practice is a long term business, and it is only after improving operational efficiency and reducing costs that you can finally run out. Fosun Pharmaceuticals, which has been "chasing" United Family since 2009, said after its successful acquisition in 2014 that it would not consider United Family's profitability in the short term, and that it would try to bring United Family to the big cities as soon as possible, and that it would open several or more stores as soon as possible in the big cities of Beijing, Shanghai, Guangzhou, Chengdu, and Qingdao," it said. The UFH team has been working on a number of projects in the past few years, including the opening of a number of stores in Beijing, Shanghai, Guangzhou, Chengdu, Qingdao, and other major cities.
UFH's rapid expansion, indeed, cannot be separated from the support of Fosun Pharmaceuticals behind.
But like Capital Healthcare, UFH's long period of unprofitability has put constant pressure on Fosun Pharma. By July 2019, Fosun Pharma decided to sell UFH to New Wind Medical.
And as for losses, UFH founder Li Bijing confessed in an interview with China Entrepreneur back then that "hospitals are a big investment, and the first few years of operation are definitely a loss."
This statement may also apply to Capital Healthcare, which was once a pioneer in running hospitals with high hopes, but now has no choice but to go on the path of listing and transferring, and if it can't wait for a new owner with the money and patience to come in, it will be hard to escape the cycle of losses and selling out.
Reporter's Note: In the course of the year, the company has been working on a number of new products and services, such as a new product, a new product, a new product, a new product, a new product, a new product, a new product, a new product, a new product, a new product, a new product, a new product, a new product, a new product, a new product, a new product, a new product, a new product, a new product. For the public, the private hospitals wind up promoting the increase of social health care resources, the emergence of high-end hospitals also meet the public diversified medical needs. But for investors, high cost, slow return hospital track is not a good business, still have to play a question mark.
The medical track has never lacked the ability to tell a story, but investing in hospitals is a long-term business, waiting to return a longer cycle, through the cycle of survival, in order to ultimately build the brand, to gain the trust of the patients as well as the healthcare authorities, and to really get a foothold in the track, and impatient investors are difficult to taste the final fruit.
On the one hand, the capital favors the policy boost, which will bring more opportunities for the social medical; but on the other hand, the high investment, high cost also means more financial pressure. For investors, investment in medical institutions is still a challenge and opportunity for business, the ultimate winning factor is still the level of medical care, medical environment and quality of service, and these, need to withstand the test of time.
Reporter: Ke Yang Intern: Lin Zichen
Visual: Cai Peijun
Layout: Zhang Haini Ma Yuan
The Daily Beast
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