TRT(SH:600085) 智通财经网·2025-07-20 13:33Core Viewpoint - The rapid growth of the integrated medical and elderly care industry in China is driven by the aging population, with Tongrentang Medical and Health aiming for a successful IPO to become the fourth listed company under the Tongrentang Group [1] Company Overview - Tongrentang Medical and Health is a traditional Chinese medicine (TCM) healthcare group providing comprehensive TCM medical services to individual clients and standardized management services to institutional clients [2] - The company has established a tiered medical service network, including 12 self-owned offline medical institutions and one internet hospital, along with 10 offline managed medical institutions [2] - As of June 2024, the company holds a 1.7% market share in the non-public TCM hospital sector, ranking second in total medical service revenue with a 0.2% market share [2][10] Financial Performance - Revenue from 2022 to 2024 was approximately 911 million, 1.15 billion, and 1.18 billion RMB respectively, with net profits turning from a loss of 9.23 million RMB in 2022 to profits of 42.63 million and 46.20 million RMB in 2023 and 2024 [3][4] - The revenue structure indicates that over 80% of total revenue comes from medical services, with health product sales contributing 14% [4] Acquisition Strategy - The company has successfully turned losses into profits primarily through acquisitions, including the purchase of stakes in Sanxi Tang Healthcare and Sanxi Tang Pharmaceutical, which contributed significantly to revenue [5] - Future expansion plans include acquiring five profitable medical institutions by the end of 2029, focusing on economically active regions [6] Industry Context - The TCM healthcare market in China has grown from 659.9 billion RMB in 2019 to 897.6 billion RMB in 2023, with a projected compound annual growth rate (CAGR) of 10.2% from 2024 to 2028 [10] - Despite the growth, the industry remains highly competitive and fragmented, with Tongrentang Medical and Health facing challenges in scaling operations through self-built facilities [12] Financial Health - As of December 31, 2024, the company had cash and cash equivalents totaling 296.73 million RMB, with a debt ratio that has increased to around 45.2% [7][8] - The company's goodwill has risen significantly due to acquisitions, reaching 263.44 million RMB in 2024, which constitutes 37% of its net assets [9]