global offering

361 Pages·2016·3.69 MB·English

Human Health Holdings Limited
盈健醫療集團有限公司
(Incorporated in the Cayman Islands with limited liability)
盈 H Stock Code: 1419
GLOBAL
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Sole Sponsor
Sole Global Coordinator
Joint Bookrunners and Joint Lead Managers
IMPORTANT
If you are in any doubt about any of the contents of this prospectus, you should obtain independent
professionaladvice.
Human Health Holdings Limited
(IncorporatedintheCaymanIslandswithlimitedliability)
GLOBAL OFFERING
NumberofOfferSharesundertheGlobalOffering : 76,680,000Shares(subjecttotheOver-allotment
Option)
NumberofHongKongOfferShares : 7,668,000Shares(subjecttoadjustment)
NumberofInternationalOfferShares : 69,012,000Shares(subjecttoadjustmentandthe
Over-allotmentOption)
OfferPrice : NotmorethanHK$1.51perOfferShare(payablein
fullonapplicationinHongKongdollars,subjectto
refund,plusbrokerageof1%,SFCtransactionlevy
of0.0027%andStockExchangetradingfeeof
0.005%)andexpectedtobenotlessthanHK$1.32
perOfferShare
NominalValue : HK$0.01perShare
StockCode : 1419
SoleSponsor
SoleGlobalCoordinator
JointBookrunnersandJointLeadManagers
HongKongExchangesandClearingLimited,TheStockExchangeofHongKongLimitedandHongKongSecuritiesClearingCompanyLimitedtakeno
responsibilityforthecontentsofthisprospectus,makenorepresentationastoitsaccuracyorcompletenessandexpresslydisclaimanyliabilitywhatsoeverfor
anylosshowsoeverarisingfromorinrelianceuponthewholeoranypartofthecontentsofthisprospectus.
Acopyofthisprospectus,havingattachedtheretothedocumentsspecifiedinthesectionheaded“DocumentsDeliveredtotheRegistrarofCompaniesand
AvailableforInspection”inAppendixVtothisprospectus,hasbeenregisteredbytheRegistrarofCompaniesinHongKongasrequiredbysection342Cof
theCompanies(WindingUpandMiscellaneousProvisions)Ordinance.TheSecuritiesandFuturesCommissionandtheRegistrarofCompaniesinHongKong
takenoresponsibilityforthecontentsofthisprospectusoranyotherdocumentreferredtoabove.
TheOfferPriceisexpectedtobefixedbyagreementbetweentheSoleGlobalCoordinator(foritselfandonbehalfoftheUnderwriters)andourCompanyon
the Price Determination Date. The Price Determination Date is expected to be on or around Tuesday, 22 March 2016 and, in any event, not later than
Wednesday, 30 March 2016. The Offer Price will be not more than HK$1.51 and is currently expected to be not less than HK$1.32 unless otherwise
announced.ApplicantsforHongKongOfferSharesarerequiredtopay,onapplication,themaximumOfferPriceofHK$1.51foreachSharetogetherwitha
brokeragefeeof1%,SFCtransactionlevyof0.0027%andStockExchangetradingfeeof0.005%subjecttorefundiftheOfferPriceasfinallydetermined
shouldbelowerthanHK$1.51.
TheSoleGlobalCoordinator(foritselfandonbehalfoftheUnderwriters)may,withourconsent,reducethenumberofOfferSharesintheGlobalOffering
and/ortheindicativeOfferPricerangebelowthatstatedinthisprospectus(whichisHK$1.32toHK$1.51perShare)atanytimeonorpriortothemorningof
thelastdayforlodgingapplicationsundertheHongKongPublicOffering.Insuchacase,noticesofthereductioninthenumberofOfferSharesintheGlobal
Offering and/or the indicative Offer Price range will be published on the websites of the Stock Exchange at www.hkexnews.hk and our Company at
www.humanhealth.com.hk,notlaterthanthemorningofthedaywhichisthelastdayforlodgingapplicationsundertheHongKongPublicOffering.If,for
anyreason,theOfferPriceisnotagreedbetweentheSoleGlobalCoordinator(foritselfandonbehalfoftheUnderwriters),andourCompanyonorbefore
Wednesday,30March2016,theGlobalOffering(includingtheHongKongPublicOffering)willnotproceedandwilllapse.Furtherdetailsaresetoutinthe
sectionsheaded“StructureandConditionsoftheGlobalOffering”and“HowtoApplyforHongKongOfferSharesandReservedShares”inthisprospectus.
Priortomakinganinvestmentdecision,prospectiveinvestorsshouldcarefullyconsideralloftheinformationsetoutinthisprospectus,includingtherisk
factorssetoutinthesectionheaded“RiskFactors”inthisprospectus.
TheobligationsoftheHongKongUnderwritersundertheHongKongUnderwritingAgreementtosubscribefor,andtoprocureapplicantsforthesubscription
for,theHongKongOfferShares,aresubjecttoterminationbytheSoleGlobalCoordinator(foritselfandonbehalfoftheHongKongUnderwriters)ifcertain
groundsarisepriorto8:00a.m.onthedaythattradingintheOfferSharescommencesontheStockExchange.Suchgroundsaresetoutinthesectionheaded
“Underwriting—UnderwritingArrangementsandExpenses—HongKongPublicOffering—Groundsfortermination”inthisprospectus.Itisimportant
thatyourefertothatsectionforfurtherdetails.
TheOfferShareshavenotbeenandwillnotberegisteredundertheU.S.SecuritiesActoranystatesecuritieslawintheUnitedStatesandmaynotbeoffered,
sold,pledgedortransferredwithintheUnitedStates,orfortheaccountorbenefitofU.S.persons,exceptthatOfferSharesmaybeoffered,soldordelivered
outsidetheUnitedStatesinoffshoretransactionsinaccordancewithRegulationS.
17March2016
EXPECTEDTIMETABLE(1)
If there is any change in the following expected timetable of the Hong Kong Public Offering, we will
issue an announcement in Hong Kong to be published on the websites of the Stock Exchange at
www.hkexnews.hkandourCompanyatwww.humanhealth.com.hk.
DoctorandDentistPreferentialOfferingandEmployeePreferentialOffering
commenceandBLUEandPINKApplicationFormsmadeavailableto
EligibleDoctorsandDentistsandEligibleEmployees,respectively, 9:00a.m.onThursday,
from ......................................................... 17March2016
HongKongPublicOfferingcommencesandWHITEandYELLOW
ApplicationFormsavailablefrom ................................. 9:00a.m.onThursday,
17March2016
LatesttimetolodgeBLUEandPINKApplicationForms ................ 12:00noononMonday,
21March2016
LatesttimetocompleteelectronicapplicationsunderHKeIPOWhiteForm
servicethroughthedesignatedwebsitewww.hkeipo.hk(2) .............. 11:30a.m.onTuesday,
22March2016
ApplicationlistsoftheHongKongPublicOffering,DoctorandDentist
PreferentialOfferingandEmployeePreferentialOfferingopen(3) ......... 11:45a.m.onTuesday,
22March2016
Latesttimeto(i)lodgeWHITEandYELLOWApplicationForms;(ii)give
electronicapplicationinstructionstoHKSCC(4)and;(iii)complete
paymentofHKeIPOWhiteFormapplicationsbyeffectinginternet
bankingtransfer(s)orPPSpaymenttransfer(s) ....................... 12:00noononTuesday,
22March2016
ApplicationlistsoftheHongKongPublicOffering,DoctorandDentist
PreferentialOfferingandEmployeePreferentialOfferingclose .......... 12:00noononTuesday,
22March2016
ExpectedPriceDeterminationDate(5) ................................. Tuesday,22March2016
(1) Announcementof:
Š theOfferPrice;
Š anindicationofthelevelofinterestintheInternationalOffering;
Š the level of applications in the Hong Kong Public Offering, the
Doctor and Dentist Preferential Offering and the Employee
PreferentialOffering;and
Š thebasisofallocationoftheHongKongOfferShares,theDoctor
andDentistReservedSharesandEmployeeReservedShares
tobepublishedonthewebsitesoftheStockExchangeat
www.hkexnews.hkandourCompanyat
www.humanhealth.com.hk(6)on .......................... Thursday,31March2016
(2) AnnouncementofresultsofallocationsintheHongKongPublic
Offering,theDoctorandDentistPreferentialOfferingandtheEmployee
PreferentialOffering(includingsuccessfulapplicants’identification
documentnumbers,whereappropriate)tobeavailablethroughavariety
ofchannelsincludingthewebsitesoftheStockExchangeat
www.hkexnews.hkandourCompanyatwww.humanhealth.com.hk
(seethesectionheaded“HowtoApplyforHongKongOfferSharesand
ReservedShares—11.PublicationofResults”)(6)from .............. Thursday,31March2016
—i—
EXPECTEDTIMETABLE(1)
(3) AfullannouncementoftheHongKongPublicOffering,theDoctorand
DentistPreferentialOfferingandtheEmployeePreferentialOffering
containing(1)and(2)abovetobepublishedonthewebsitesoftheStock
Exchangeatwww.hkexnews.hkandourCompanyat
www.humanhealth.com.hk(6)from .............................. Thursday,31March2016
ResultsofallocationsfortheHongKongPublicOffering,theDoctorand
DentistPreferentialOfferingandtheEmployeePreferentialOfferingwill
beavailableatwww.tricor.com.hk/ipo/resultwitha“searchbyID”
function ...................................................... Thursday,31March2016
DispatchofSharecertificatesinrespectofwhollyorpartiallysuccessful
applicationspursuanttotheHongKongPublicOffering,theDoctorand
DentistPreferentialOfferingandtheEmployeePreferentialOffering
on(7) ......................................................... Thursday,31March2016
DispatchofHKeIPOWhiteForme-AutoRefundpaymentinstructions/refund
chequeson(8) .................................................. Thursday,31March2016
DealingsinSharesontheStockExchangetocommenceon ............... Friday,1April2016
Notes:
(1) AlltimesanddatesrefertoHongKonglocaltimeanddate,exceptasotherwisestated.
(2) Youwillnotbepermittedtosubmityourapplicationthroughthedesignatedwebsiteatwww.hkeipo.hkafter11:30a.m.onthelastday
for submitting applications. If you have already submitted your application and obtained an application reference number from the
designatedwebsitepriorto11:30a.m.,youwillbepermittedtocontinuetheapplicationprocess(bycompletingpaymentofapplication
monies)until12:00noononthelastdayforsubmittingapplications,whentheapplicationlistsclose.
(3) If there is a tropicalcyclone warning signalnumber 8 or above, or a “black” rainstormwarning at any timebetween 9:00 a.m. and
12:00noononTuesday,22March2016,theapplicationlistswillnotopenonthatday.Seethesectionheaded“HowtoApplyforHong
KongOfferSharesandReservedShares—10.Effectofbadweatherontheopeningofapplicationlists”.
(4) ApplicantswhoapplyforHongKongOfferSharesbygivingelectronicapplicationinstructionstoHKSCCshouldrefertothesection
headed“HowtoApplyforHongKongOfferSharesandReservedShares—6.Applyingbygivingelectronicapplicationinstructionsto
HKSCCviaCCASS”.
(5) ThePriceDeterminationDateisexpectedtobeonoraroundTuesday,22March2016and,inanyevent,notlaterthanWednesday,
30March2016.If,foranyreason,theOfferPriceisnotagreedbetweentheSoleGlobalCoordinator(onbehalfoftheUnderwriters)and
ourCompanybyWednesday,30March2016,theGlobalOfferingwillnotproceedandwilllapse.
(6) The announcement will be available for viewing on the “Main Board — Allotment of Results” page on the websites of the Stock
Exchange at www.hkexnews.hk and our Company at www.humanhealth.com.hk. None of the websites or any of the information
containedonthewebsitesformspartofthisprospectus.
(7) SharecertificatesareexpectedtobeissuedonThursday,31March2016butwillonlybecomevalidprovidedthattheGlobal
Offering has become unconditional in all respects and neither of the Underwriting Agreements has been terminated in
accordancewithitsterms,whichisscheduledtobeataround8:00a.m.onFriday,1April2016.InvestorswhotradeShareson
thebasisofpubliclyavailableallocationdetailsbeforethereceiptofsharecertificatesandbeforetheybecomevaliddosoentirely
attheirownrisk.
(8) e-AutoRefundpaymentinstructions/refundchequeswillbeissuedinrespectofwhollyorpartiallyunsuccessfulapplicationsand
in respect of wholly or partially successful applications if the Offer Price is less than the price per Offer Share payable on
application.
You should read carefully the sections headed “Underwriting”, “Structure and Conditions of the Global
Offering” and “How to Apply for Hong Kong Offer Shares and Reserved Shares” in this prospectus for details
relating to the structure and conditions of the Global Offering, procedures on the applications for Hong Kong
Offer Shares and the expected timetable, including conditions, effect of bad weather and the dispatch of refund
chequesandSharecertificates.
—ii—
CONTENTS
IMPORTANTNOTICETOINVESTORS
ThisprospectusisissuedbyourCompanysolelyinconnectionwiththeHongKongPublicOfferingand
the Hong Kong Offer Shares and does not constitute an offer to sell or a solicitation of an offer to buy any
securityotherthantheHongKongOfferSharesofferedbythisprospectuspursuanttotheHongKongPublic
Offering.Thisprospectusmaynotbeusedforthepurposeof,anddoesnotconstitute,anofferorinvitationin
any other jurisdiction or in any other circumstances. No action has been taken to permit a public offering of
the Offer Shares in any jurisdiction other than Hong Kong and no action has been taken to permit the
distribution of this prospectus in any jurisdiction other than Hong Kong. The distribution of this prospectus
andtheofferingandsaleoftheOfferSharesinotherjurisdictionsaresubjecttorestrictions,andmaynotbe
made except as permitted under the applicable securities laws of such jurisdictions pursuant to registration
withorauthorisationbytherelevantsecuritiesregulatoryauthoritiesoranexemptiontherefrom.
YoushouldrelyonlyontheinformationcontainedinthisprospectusandtheApplicationFormstomake
your investment decision. We have not authorised anyone to provide you with information that is different
fromwhatiscontainedinthisprospectus.Anyinformationorrepresentationnotmadeinthisprospectusmust
not be relied on by you as having been authorised by us, the Sole Sponsor, the Sole Global Coordinator, the
Joint Bookrunners, the Joint Lead Managers, the Underwriters, any of our or their affiliates or any of their
respective directors, officers, employees or agents or any other person or party involved in the Global
Offering.
Page
ExpectedTimetable .................................................................... i
Contents .............................................................................. iii
Summary ............................................................................. 1
Definitions ............................................................................ 11
GlossaryofTechnicalTerms ............................................................. 24
Forward-lookingStatements ............................................................. 26
RiskFactors........................................................................... 27
InformationaboutthisProspectusandtheGlobalOffering ................................... 39
WaiversfromStrictCompliancewithListingRules ......................................... 42
DirectorsandPartiesInvolvedintheGlobalOffering ........................................ 44
CorporateInformation.................................................................. 47
IndustryOverview ..................................................................... 48
RegulatoryOverview ................................................................... 59
History,ReorganisationandGroupStructure .............................................. 83
Business .............................................................................. 104
ConnectedTransactions ................................................................. 140
RelationshipwithControllingShareholders ................................................ 154
—iii—
CONTENTS
Page
SubstantialShareholders ............................................................... 159
Directors,SeniorManagementandStaff .................................................. 160
ShareCapital ......................................................................... 170
CornerstoneInvestor ................................................................... 172
FinancialInformation ................................................................. 174
FuturePlansandUseofProceeds ........................................................ 211
Underwriting ......................................................................... 213
StructureandConditionsoftheGlobalOffering ........................................... 223
HowtoApplyforHongKongOfferSharesandReservedShares ............................. 234
AppendixI — Accountants’Report ................................................. I-1
AppendixII — UnauditedProFormaFinancialInformation ............................ II-1
AppendixIII — SummaryoftheConstitutionofourCompanyandCaymanIslandsCompany
Law ............................................................... III-1
AppendixIV — StatutoryandGeneralInformation .................................... IV-1
AppendixV — DocumentsDeliveredtotheRegistrarofCompaniesandAvailablefor
Inspection .......................................................... V-1
—iv—
SUMMARY
Thissummaryaimstogiveyouanoverviewoftheinformationcontainedinthisprospectus.Sincethisis
a summary, it does not contain all the information that may be important to you. You should read the whole
document before you decide to invest in the Offer Shares. There are risks associated with any investment.
Someoftheparticular risks ininvesting intheOfferSharesaresetoutinthesection headed“RiskFactors”
inthisprospectus.YoushouldreadthatsectioncarefullybeforeyoudecidetoinvestintheOfferShares.
OVERVIEW
We are a leading private integrated healthcare service provider in Hong Kong with comprehensive
outpatient capabilities covering general practice services, specialties services and dental services. According to
the Euromonitor Report, among the private healthcare service providers in Hong Kong(Note), we ranked first as
measured by the number of medical centres as at 31 August 2015. We operate our network of medical centres
underthefollowingbrandnamesasattheLatestPracticableDate:
HumanHealthIntegratedMedicalCentre
19medicalcentreswhichprovidecomprehensivemedicalservicescovering
generalpracticeservices,and/orspecialtiesservicesand/ordentalservices
HumanHealthMedicalCentre
29medicalcentreswhichprovidegeneralpracticeservices
PerfectLife
8medicalcentreswhichmainlyprovidegeneralpracticeservicesalongside
withcertainspecialtiesservices
PolyhealthSpecialists
5medicalcentreswhichprovidespecialtiesservices
PolyDental
1medicalcentrewhichprovidesdentalservices
andwealsooperate4dentalcentreswhichprovidedentalservicesunder
“Laserdontics ”orthenameofrespectivedentist(s)
Our Group has been providing healthcare services to the Hong Kong community since 1997. Through our
network of medical centres in Hong Kong, we generate our revenue in a growing market with a strong demand
forourservices.AsattheLatestPracticableDate,weoperated66medicalcentresacrossall18districtsinHong
Kong,mostofthemarelocatedatornearMTRstations,primelocationsproximaltopublictransportation hubs,
shopping plazas or residential areas. Among our medical centres, we have 115 service points providing
healthcareservicescoveringmultipledisciplines,whichinclude57generalpracticeservicepoints,45specialties
service points and 13 dental service points. Our comprehensive healthcare services, which includes specialties
services, covering up to 11 areas, namely general surgery, orthopaedics & traumatology, ophthalmology,
otorhinolaryngology, paediatrics, obstetrics & gynaecology, gastroenterology & hepatology, respiratory
medicine,cardiology,paediatric surgeryanddermatology, togetherwithourgeneralpracticeservicesanddental
services, enable us to position ourselves as an integrated healthcare service provider. We have established this
networkthroughorganic growthaswellasstrategic acquisitions, mostnotablyouracquisition ofthecontrolling
interest in Perfect Life in November 2014 and our acquisition of three companies engaged in the provision of
dental services in June 2015. As a result of the acquisitions, 9 medical centres and 4 dental centres have been
added to our Group. Our customers comprise individual customers and corporate customers which include
medicalschememanagementcompanies,insurancecompaniesandcorporations.ForFY2015,revenuegenerated
from individual customers and corporate customers represented approximately 79.3% and 20.7% of our total
revenue for that financial year, respectively. Moreover, as at 30 September 2015, the number of our patients
Note:ThisreferstoprivatehealthcareserviceprovidersinHongKonginrespectoftheirdirectlyoperatedmedicalcentres,andexcluding
privatehospitaloperatorsandprovidersofservicesotherthangeneralpracticeservices,specialtiesservicesanddentalservices(suchas
those medical centres providing only traditional Chinese medicine service, health check service, laboratory service, imaging service and
others).
—1—
SUMMARY
reached approximately 1.73 million, whereas our patient visits during FY2015 was approximately 1.23 million
times,respectively. Weattribute ourprominentmarketpositiontoourexperiencedandstableprofessionalteam.
AsattheLatestPracticableDate,amajorityofourprofessionalteammembersworkedwithourGroupformore
thanthreeyearstoupto18years.
Ourcorporateculturefollowsourmotto“FromOurHeart•ForYourHealth”( • ),whichestablishes
usasapatient-centricandquality-focusedserviceproviderwhosemissionistoprovidequalityhealthcareservices
through our network of medical centres. We are dedicated in providing healthcare services 7-day a week and late
nightservicesatamajorityofourgeneralpracticemedicalcentres.Inaddition,wearealsocommittedinproviding
highqualityhealthcareservicesbyadoptingmanagementpracticesandstandardoperationproceduresensuringthe
quality of service of our professional team and staff. We believe our commitment in providing quality healthcare
services will result in our lasting doctor-patient relationships whilst we builduponour success inestablishingand
operatingnewmedicalcentresindifferentregionsinHongKong.DuringtheTrackRecordPeriod,ourGrouphas
received the Caring Company award for the years from 2009 to 2015, the Hong Kong Star Brand Award
(Enterprise) in 2012 and 2013, the Management Excellent Award in 2014 and Prime Award for Corporate Social
Responsibilityin2014.
We believe we are well-positioned to capture market opportunities in the high-growth private healthcare
service industry in Hong Kong. Based on the Euromonitor Report, the aggregate revenue of general practice,
specialistanddentalmedicalcentresinHongKongincreasedataCAGRofapproximately11.5%fortheperiod
from2012to2014;therevenueofsuchmedicalcentresisexpectedtogrowataCAGRofapproximately11.4%
during the forecast period from 2015to2019.Weoutperformed themarket ataCAGRofapproximately 13.4%
for the past three financial years, and we believe our business will continue to enjoy such growth. According to
the Euromonitor Report, the private healthcare service industry in Hong Kong is highly fragmented, and is
mostly comprised of individual operators of general outpatient and specialist medical centres, in particular, the
total number of medical centres operated by private healthcare service providers in Hong Kong was 2,351 in
2014. There is likely to be an increasing trend of consolidation of private healthcare service operators and we
believethatwearewellpositionedtocapitaliseontheseindustrytrend.
We have a successful track record in the establishment and management of medical centres all operating
under our direct management and brand names. We intend to strengthen our market position and to build upon
our experience and successful track record of providing integrated healthcare services by continuing our
dedicationtopatient-centriccorporateculture,leveragingonourinfrastructure,managementexpertise,knowhow
andcustomerbase.BycontinuingourgrowthinHongKong,weintendtofurtherextendournetworkofgeneral
practicemedicalcentres,aswellasestablishnewspecialistmedicalcentresthatfocusonprovidingtreatmentfor
particular areas of medical problems, or those inter-related to such specialty areas. We also intend to expand to
major first-tier cities in the PRC by replicating our business model. We believe these strategies will help us
developourbusinesswithhighergrowthpotentialandprofitability.
OURMEDICALANDDENTALNETWORK
As at the Latest Practicable Date, we operate a total of 66 medical centres in our network, out of which 12
medicalcentresarelocatedontheHongKongIsland,22medicalcentresarelocatedinKowloonand32medical
centresarelocatedintheNewTerritories(includingLantauIsland).
—2—
SUMMARY
AdistributionofournetworkofmedicalcentresinHongKongbyservicepointsasattheLatestPracticable
DateissetforthinthemapofHongKongbelow:-
Sheung Shui
Fanling Ma On Shan
Yuen Long
Tai Po Market
Tin Shui Wai
Science Park
Tuen Mun
Tsuen Wan Kwai Chung Sha Tin City One
Kwai Fong Tai Wai
Mei Foo
Tsing Yi Wong Tai Sin
Lai Chi Kok
Cheung Sha Wan
Kowloon Bay Po Lam
Hang Hau
Mong Kok
Tung Chung Tseung Kwan O
Kowloon Yau Ma Tei Hung Hom Ngau Tau Kok Tiu Keng Leng
Jordan
Austin Kwun Tong
Tsim Sha Tsui Yau Tong
North Point
Quarry Bay Lohas
Park
Hong Kong Tin Hau Sai Wan Ho
General Practice Services
Central Shau Kei Wan
Specialties Services Wan Chai Causeway Bay
Dental Services Chai Wan
Aberdeen Siu Sai Wan
OURCUSTOMERSANDSUPPLIERS
OurCustomers
Our customers can be categorised into two groups: (a) individual customers who settle their own medical
payments by cash or cash equivalent, such as government medical vouchers, credit cards or debit cards; and
(b) corporate customers which we enter into contractual arrangements with them, such as medical scheme
management companies, insurance companies and corporations, which settle medical payments for their policy
members or staff members who are patients of our Group. Our individual customers comprise a significant
portionofourcustomerbase.ForFY2013,FY2014,FY2015andthethreemonthsended30September2015,the
revenuegeneratedfromourindividualcustomersrepresentedapproximately80.0%,78.9%,79.3%and79.2%of
our total revenue, respectively, and revenue generated from our corporate customers represented approximately
20.0%,21.1%,20.7%and20.8%ofourtotalrevenue,respectively.
During the Track Record Period, revenue from the five largest customers of our Group accounted for
approximately16.4%,17.1%,16.3%and15.5%ofthetotalrevenue,respectively.Forthesameperiods,revenue
attributabletoourGroup’slargestcustomeraccountedforapproximately5.7%,5.2%,5.0%and5.4%ofourtotal
revenue,respectively. Thefivelargest customers havebeencustomers ofourGrouprangingfrom 7to13years,
whicharemedicalschememanagementcompanies.OurDirectorsconfirmedthatallofthefivelargestcustomers
of our Group were Independent Third Parties. For further details on our customers, see “Business — Our
Customers”onpages126to128inthisprospectus.
OurSuppliers
Our suppliers primarily include doctors, dentists, pharmaceutical drugs distributors and manufacturers and
laboratoriesandimagingcentres.
ForFY2013,FY2014,FY2015andthethree monthsended30September 2015,costincurredwithourfive
largest suppliers accounted for approximately 18.7%, 17.8%, 14.3% and 14.7% of our total cost of services
—3—
SUMMARY
rendered, respectively. During the same periods, cost incurred with our largest supplier accounted for
approximately 5.3%, 4.3%, 3.3% and 3.3% of our total cost of services rendered, respectively. The five largest
suppliers have been suppliers of our Groupranging from 1to 16yearsandtheyinclude doctors anddistributors
of pharmaceutical drugs. Our Directors confirmed that all of the five largest suppliers of our Group were
IndependentThirdParties.Forfurtherdetailsonoursuppliers,see“Business—OurSuppliers”onpages128to
130inthisprospectus.
OURCOMPETITIVESTRENGTHS
Webelievethatwepossessthefollowingcompetitivestrengthswhichdifferentiateusfromourcompetitors:
Š Strategic network of medical centres where all locations are operating under our management and
brandnames;
Š Weareacomprehensivehealthcareserviceproviderandourspecialtiescapabilitiescreatesynergyand
improveouroverallhealthcareservices;
Š We provide seamless quality and integrated healthcare services to our patients through our
managementpracticesandstandardoperationprocedures;
Š Wehaveastrongandstablemanagementteam;and
Š Our established infrastructure provides a great platform for retention of good talents within our
professionalteamandourprofessionalteamdevelopslongtermrelationshipwithourGroup.
OURSTRATEGIES
Westrive tobecomeoneofthebestprivatehealthcare serviceprovidersinHongKongandinthePRC.To
achievethis,weplantoimplementthefollowingstrategies:
Š LeverageonourcustomerbaseandestablishadditionalspecialistmedicalcentresinHongKong;
Š ExpandournetworkofgeneralpracticemedicalcentresinHongKong;
Š ReplicatethesuccessofourmanagementpracticeandstandardisedoperatingplatforminthePRC;
Š IdentifyestablishedmedicalcentresinHongKongasacquisitiontargets;
Š Enhance our brand recognition through effective marketing strategies, refurbishment and maintenance
ofourmedicalcentres;and
Š Enhanceourinformationtechnologyinfrastructure.
HIGHLIGHTSOFRISKFACTORS
There are certain risks involved in our operations set forth in “Risk Factors” on pages 27 to 38 in this
prospectus. You should read the “Risk Factors” section in its entirety before you decide to invest in the
OfferShares.Someofthemajorriskfactorsinclude:
Š Wearedependentonourprofessionalteamandourfinancialresultsmaybeaffectedifwearenotable
torecruitqualifiedpersonstojoinourteamorretainthem;
Š We rely on our reputation within the healthcare service industry and our brands’ image which may be
adverselyaffectedbynegativepublicity;
—4—