Core Viewpoint - The trend of foreign patients seeking medical treatment in China is rising, driven by factors such as visa-free policies and the appeal of cost-effective healthcare services [1][3]. Group 1: Medical Tourism Trends - The number of international patients visiting China has increased significantly, with a reported 128 million visits in 2025, marking a 73.6% growth over three years [1]. - Popular medical services among foreign patients include dental care, health check-ups, and traditional Chinese medicine [1]. - Social media platforms like TikTok and Xiaohongshu are amplifying the visibility of medical services in China, showcasing cost comparisons that highlight significant savings for patients [1]. Group 2: Factors Driving Medical Migration - Efficiency, pricing, and quality of healthcare are key drivers for patients seeking treatment abroad, particularly from countries with long wait times for non-emergency procedures [3]. - China is attracting patients from lower-income countries due to its affordable healthcare options while also drawing patients from wealthier nations seeking advanced medical treatments [3]. Group 3: Healthcare System Advantages - Chinese medical institutions are responding effectively to the needs of international patients, offering rapid diagnostic services and streamlined treatment processes [4]. - Private hospitals in cities like Shanghai and Kunming are establishing comprehensive care capabilities for cross-border patients, enhancing the overall patient experience [5]. Group 4: Innovations in Medical Treatment - China's pharmaceutical sector is transitioning from generic to innovative drug development, with new treatments like the cancer drug Ivosidenib being available exclusively in China [6]. - The success stories of patients receiving advanced treatments in China are contributing to the country's growing reputation as a medical destination [6]. Group 5: Market Potential and Challenges - Despite the growth potential, China's inbound medical tourism remains limited compared to countries like Malaysia and South Korea, which receive over a million international patients annually [7]. - Regulatory challenges and the need for improved cross-border healthcare standards are significant barriers to the growth of this sector [9]. Group 6: Policy Developments - Shanghai is actively promoting international medical tourism through pilot programs and policy initiatives aimed at enhancing the city's healthcare offerings [7][8]. - The implementation of supportive policies is beginning to show positive results, with hospitals reporting increased numbers of foreign patients [8]. Group 7: Systemic Issues - Challenges such as regulatory discrepancies, payment processing issues, and the limited duration of visa-free stays pose obstacles for patients requiring extensive treatment [10][11]. - The current focus on pure medical treatment lacks the integration of tourism services, which is essential for developing a robust medical tourism ecosystem [11].

Company Overview - Zhuozheng Medical has passed the main board listing hearing at the Hong Kong Stock Exchange, with Haitong International and Puyin International as joint sponsors [1] - As of 2024, Zhuozheng Medical is the third largest private mid-to-high-end comprehensive medical service provider in China, holding a market share of 2.0% [1] Industry Growth - The private mid-to-high-end medical service market in China is experiencing rapid growth, with total revenue increasing from RMB 193 billion in 2020 to RMB 426.3 billion in 2024, and is projected to reach RMB 831.4 billion by 2029 [1] Company Operations - As of October 28, 2025, Zhuozheng Medical operates 19 medical service institutions in 10 economically developed cities in China, including 17 clinics and 2 hospitals, and has 5 general clinics in Singapore and Malaysia [1] - The company employs a family medical model that integrates online and offline services, offering specialized services in pediatrics, dentistry, ophthalmology, and dermatology [1] - As of August 31, 2025, the company has 387 full-time doctors with an average of 15 years of practice experience, of which approximately 79% have worked in top-tier hospitals [1]