Core Viewpoint - Mingji Hospital, the largest private profit-oriented comprehensive hospital group in East China, faced a disappointing debut on the Hong Kong Stock Exchange, with its stock price plummeting 49.46% on the first day of trading, marking the worst opening for a new stock in Hong Kong in 2025 [1][14]. Group 1: Listing Journey - Mingji Hospital's IPO journey was marked by multiple challenges, including incomplete application materials and compliance risks, leading to delays in the listing process [5][16]. - The company finally succeeded in its fourth attempt to list on the Hong Kong Stock Exchange, becoming the fifth listed company from Nanjing in 2025 [5][16]. - The IPO raised approximately HKD 555 million, with cornerstone investors subscribing for a total of USD 39.9 million (about HKD 311 million) [5][16]. Group 2: Market Position - As of June 30, 2025, Mingji Hospital operates two hospitals with a total area of approximately 400,000 square meters and 1,850 registered beds [6][17]. - The hospital group ranked first among private profit-oriented comprehensive hospital groups in East China by bed revenue in 2024, with a market share of 1.0% regionally and 0.4% nationally [6][17]. Group 3: Financial Performance - Financial data indicates stagnation in growth, with revenues of CNY 2.336 billion, CNY 2.688 billion, and CNY 2.659 billion from 2022 to 2024, while net profit peaked at CNY 168 million in 2023 before declining to CNY 109 million in 2024 [8][19]. - In the first half of 2025, revenue dropped to CNY 1.312 billion, and net profit fell to CNY 49 million, a year-on-year decline of over 23% [9][20]. Group 4: Pricing and Market Perception - The IPO pricing strategy, which aimed to stabilize stock prices through a low public offering ratio, did not yield the desired results, with the stock price falling significantly post-IPO [10][21]. - The company's price-to-earnings (PE) ratio of 29.8 is considerably higher than that of comparable private hospital stocks, raising concerns about overvaluation [10][21]. Group 5: Use of Proceeds - The net proceeds from the IPO, approximately HKD 555 million, are allocated for hospital expansion and upgrades, with 74.3% designated for these purposes and 16% for potential investments and acquisitions [11][22]. - Plans include the construction of specialized centers in Nanjing and Suzhou hospitals, although the current bed occupancy rate is already high at 97.1% [11][22].