Yonghe Medical, as a leading medical group specializing in the provision of one-stop hair medical services in China, focuses on the hair medical services market. Based on the total revenue generated from the relevant services in 2020, YHMH is the largest player in China's hair transplant medical services and medical strengthening services markets, with 10.5% and 4.3% market share respectively.
For the six months ended June 30, 2021, its revenue amounted to RMB1.05 billion, representing an increase of 75.1% over the corresponding period in 2020. Its revenue was mainly derived from the provision of hair transplant medical services. For the six months ended June 30, 2021, the total number of patients treated by it reached 68,112 patients.
Yonghe Medical's success is not a one-day achievement. over the past 16 years, Yonghe Hair Transplant has managed to build three core strengths for itself.
One, rich resources of doctors and mature talent training mechanism.
Over the years, YongHo has built up one of the largest and highly professional medical team in the industry, and its core competitive resources are far ahead of others. The doctor's professionalism determines the effect and quality of hair transplantation, and the doctor's experience and technology play a vital role in the effect of hair transplantation. The company currently*** has 246 professional registered doctors, far more than the second and third industry combined. In addition, the company also has 919 nurses and 68 other medical professionals (pharmacists, phlebotomists, etc.), with a total team size of 1,233, a huge scale. In terms of recruitment criteria, the company strictly selects experienced and stable medical professionals, with its doctors having an average of 5 years of industry experience and its nurses having an average of 3 years of industry experience, which exceeds the average number of years of experience of its competitors' medical professionals. In addition to this, it also has a more mature standardized personnel training mechanism, which provides a guarantee for high-quality chained services.
Second, the volume and price are rising, promoting the overall high growth.
The number of patients with medical care has exploded, and the volume of patients with hair transplantation has grown at a high rate, pushing the company's total number of patients to grow rapidly.
The number of patients who received the company's hair medical services in 2020 reached 91,100, an increase of 82.68% year-on-year. Hair transplant customer unit price rose steadily, medical maintenance services customer unit price doubled, but by the relatively low customer unit price of medical maintenance of the number of patients rose sharply, the company's overall patient per capita consumption has declined.
Three, strong chain ability, shop-in-shop model to enhance profitability, single-store model is superior.
Store, the company from the first-tier cities to other cities in the province radiation, and the national multi-regional layout, to expand the store model is highly replicable, growth potential. Up to now, the company has 53 hair transplant medical institutions across the country, covering 52 cities, including Hong Kong and four first-tier cities, 15 new first-tier cities, 25 second-tier cities and seven lower-tier cities. In terms of density and breadth, there is still more room for future store expansion.
In its prospectus, the same-store situation: the growth rate of mature hospitals is maintained at 18%+, and the growth rate of developing hospitals can reach 30%+. The company's top five medical institutions are located in key first-tier cities in China, the average number of hair transplant patients received throughout the year is about 3,000, the average revenue of a single hospital is more than 100 million, and the ping efficiency of a single store is about 28,000 yuan / square meter.
The company plans to increase the number of stores to nearly 100 in the next few years, continue to expand its market share in the regions it has already covered, and strengthen the coverage of lower-tier cities to unleash market potential. At the same time, from 2019, through the "shop-in-shop" model, set up Svensson Hair Center in each hair transplantation institution, giving full play to the advantages of customer source and scale, increasing consumption frequency and improving conversion.