Core Viewpoint - The company Ruipai Pet Hospital is aiming to become the first publicly listed pet medical service provider in China, backed by major capital players like Goldman Sachs and Mars, amid a growing demand for pet healthcare services in urban areas [1][2]. Company Overview - Ruipai is the second-largest pet medical service provider in China, with 548 operational hospitals as of June 30, 2025, and is the only large national chain to achieve profitability by that date [2][3]. - The founder, Li Shoujun, transitioned from animal health to pet medical services, establishing a complete industry chain from research and production to service [3]. Financial Performance - Revenue figures for Ruipai from 2022 to 2025 are as follows: 14.55 billion RMB in 2022, 15.85 billion RMB in 2023, and 17.58 billion RMB in 2024, with 9.43 billion RMB in the first half of 2025, reflecting an 8.49% year-on-year growth [4]. - The company has a unique profitability trajectory, recording a net profit of 15.54 million RMB in the first half of 2025, with an adjusted net profit margin of 7.7% [11]. Expansion Strategy - Ruipai's growth strategy includes acquiring regional brands, with 428 out of 548 hospitals acquired, representing 77.5% of its network [4]. - The company has shifted from aggressive expansion to a focus on optimizing existing operations, evidenced by a reduction in the number of community hospitals while increasing regional center hospitals [15]. Industry Context - The pet healthcare market in China is rapidly growing, with over 120 million pet dogs and cats and a market size of 300.2 billion RMB, where pet medical services account for 28% of the total [7]. - Despite high consumer spending on pet healthcare, many pet hospitals struggle with profitability, with over 60% of them seeing fewer than 10 consultations per day [10]. Operational Challenges - Ruipai faces challenges related to integration and standardization of its acquired hospitals, with issues of compliance and quality control arising in several locations [18][19]. - The company has been criticized for high procurement costs from its largest supplier, which is also controlled by its founder, raising concerns about potential conflicts of interest [19]. Future Plans - Ruipai plans to use funds from its IPO to expand its hospital network, enhance health management services, and develop its information technology infrastructure [19]. - The company is focusing on specialized services to improve its competitive edge in a market that is transitioning from fragmented to concentrated [20].