On February 28, Ark Yunkang Holdings*** hereinafter referred to as "Ark Yunkang") submitted an IPO application to the Hong Kong Stock Exchange, which is its third submission to the Hong Kong Stock Exchange.
Ark Yunkang claims to have the largest online chronic disease management platform in China, which can provide users with services such as integrated medical care, online retail pharmacies, and customized content and marketing solutions.
Even so, Ark Yunkang is still not profitable.
From 2021 to 2023, Ark Yunkang's revenue will be 176 billion yuan, 220.4 billion and 243.8 billion yuan, and the net loss for the same period was 30.4 billion yuan, 38.3 billion yuan and 19.7 billion yuan.
In this IPO, the issue of shareholder infighting in the past of Ark Yunkang has attracted attention from all parties.
According to the prospectus, Xie Fangmin and Zhou Feng, the current actual controllers of Ark Yunkang, had conflicts with Su Zhan and Ma Haozhi, shareholders and founders of the company, due to related party transactions and other issues, and Su Zhan and Ma Haozhi had snatched the official seal by force in order to compete for control.
At present, the incident has been resolved to a certain extent.
Su Zhan, Ma Haozhi and others have been found guilty by the court of sabotage of production and operation. At the same time, Xie Fangmin and Zhou Feng also made a commitment to the incident, and if Su Zhan and Ma Haozhi filed recourse against the company, the two of them would bear the corresponding losses.
As a company focusing on chronic disease management, Ark Yunkang's Jianke platform relied on 913 at the end of 2022With an average monthly active user count of 540,000, it has become the largest online chronic disease management platform in China.
There is a real demand for chronic disease management.
According to data from CIC Consulting, the number of people suffering from chronic diseases in China has reached 4 in 20229 billion people, and it is expected to reach 57.5 billion people.
China's surge in healthcare demand and uneven distribution of healthcare resources presents a significant opportunity to help physicians manage their patient burden more effectively, while addressing the need for convenient healthcare for patients with chronic diseases. "Compared with traditional offline chronic disease management platforms (including public hospitals), online platforms save patients the time to travel to and from hospitals or pharmacies to get medicines, as well as the time spent with doctors for face-to-face follow-up visits or repeated prescriptions, thereby simplifying the chronic disease management process." ”
At present, Ark Yunkang's business is divided into three major sectors: integrated medical care, online retail pharmacy, customized content and marketing solution services.
Among them, comprehensive medical services are that users can consult on the Jianke platform, and can also directly complete the purchase of drugs according to the prescription issued by the doctor; Online retail pharmacy services cover both online and offline drug and device sales; Customized content and marketing solution services are mainly aimed at pharmaceutical companies, such as its Jianke platform can publish medical information articles and short videos, hold online medical conferences, etc.
On the surface, Ark Yunkang's service group covers patients and pharmaceutical companies, and has achieved full coverage from C-end to B-end.
However, during the reporting period, Ark Yunkang's revenue was mainly from the online retail pharmacy service business, which generated 101.1 billion yuan, 125.2 billion yuan and 129.7 billion yuan, accounting for .8% and 533%。
Not only that, Ark Yunkang's integrated medical and online retail pharmacy service businesses have overlapped in terms of drug sales.
This means that although Ark Yunkang's Jianke platform has created the concept of chronic disease management, its substantive business points to Internet drug retail.
From the perspective of gross profit margin, Ark Yunkang and Dingdang Health (9866., which is currently focusing on Internet drug retailing for C-end consumersHK), which reported a consolidated gross margin of 33 in 20225%, 13 higher than Ark Yunkang5 percentage points.
This may have something to do with the overall size of the business. In 2022, the overall revenue of Ark Yunkang will be 220.4 billion yuan, only about half of Ding Dong Health.
Ark Yunkang also admitted that it is reducing the overall cost of drug procurement by increasing procurement volume and other measures.
Through the increasing purchase volume and enhanced bargaining power, we expect to obtain more favorable procurement**, credit terms and rebates from our existing suppliers and pharmaceutical company partners, thereby reducing our overall procurement costs and expanding our procurement channels to cover more suppliers and pharmaceutical companies. Fang Ark Yunkang said.
It is worth mentioning that although Ark Yunkang claims to be the largest online chronic disease management platform in China, the market is surrounded by strong competitors.
At present, Dingdang Health, Ali Health (0241.)HK) and the common people (603883SH) and other offline pharmacies have laid out chronic disease management business.
In October 2023, Zhu Shunyan, CEO of Alibaba Health, pointed out in an interview with ** that through the self-developed intelligent follow-up system for chronic diseases, Alibaba Health can track the disease management of patients in real time, and customize personalized patient education content and patient education frequency on demand, supervise patients to learn, follow-up, take medication, and ultimately improve medical indicators.
According to the disclosure of ordinary people, by the end of the third quarter of 2023, the number of people with chronic diseases has reached 12 million.
In terms of chronic disease management services, the company has installed chronic disease management equipment in all stores. The people pointed out that "compared with ordinary members, the overall contribution of customer stickiness and annual sales has increased significantly." ”
Around the market of chronic disease management, online and offline pharmacies are continuing to make efforts, and Ark Yunkang is challenged.
However, Ark also pointed out that its goal is to expand its services from chronic disease management to a wider range of diseases.
With the help of the chronic disease management platform, we are committed to providing personalized medical services and precision medicine to the growing group of chronic disease patients, with the goal of extending the service to a wider range of disease areas. Fang Ark Yunkang said.
Submitted to the Hong Kong Stock Exchange for the third time, Ark Yunkang attracted the most attention from the market because of a shareholder infighting that occurred during its reporting period.
Prior to the reorganization of Ark Yunkang (hereinafter collectively referred to as "Ark Yunkang"), its parent company was Yunyi Inc., which was registered in the Cayman Islands. The latter controlled Ark Yunkang's business through a series of agreements.
Among them, Xie Fangmin and Zhou Feng, who are now the actual controllers of Ark Yunkang and those acting in concert, relied on Yunyi Inc35% of the shares control Ark Yunkang, while founders Su Zhan and Ma Haozhi hold Yunyi Inc. together28% of the shares.
However, the calm of management activities was shattered by a regular strategic business review.
In 2019, when Ark Yunkang conducted a regular internal strategic business review, it was found that Su Zhan and Ma Haozhi had conducted transactions with Ark Yunkang through related parties, but this relationship was not disclosed.
The investigation found that between January and June 2019, Ma Haozhi's relatives and Su Zhan's long-term partners jointly established a company A, and Ma Haozhi, Su Zhan and others used their status as shareholders and directors to make Company A a the best businessman of Ark Yunkang.
At the same time, Ark Yunkang claimed that the service fee charged by Company A was higher than that of other transactions in the same period, resulting in the unfairness of the related party transactions.
As a result of these transactions, the Group recorded a slight loss of income prior to the restructuring. Although the loss of revenue is not significant, Yunyi IncOther directors considered that the transactions constituted a conflict of interest to the interests of the Group and all other shareholders before the restructuring as a whole and requested that the transactions be terminated. Ark Yunkang pointed out.
As a result, the contradictions within the shareholders were intensified, and a "simple and unpretentious" business war was staged.
In July 2019, Su Zhan, Ma Haozhi and others forcibly entered Guangzhou Yunyi, the operating entity of Ark Yunkang in mainland China, and restricted employees from entering and leaving the office, while also entering Xie Fangmin's office and taking away official seals and other items by force.
Trade Winds (ID: tradewind01) noticed that the two sides used to disagree on the claim of taking away a large number of items.
According to surging news reports, at that time, Xie Fangmin reported to the police that foreign currency, gold bars and other property placed in the safe were lost, and Ma Haozhi was later detained on suspicion of theft.
However, Su Zhan, who participated in the "seizure of power by force", said that the safe did not contain foreign currency, gold bars and other property, and it was impossible for them to commit theft in front of so many people in broad daylight.
After that, the Guangdong Provincial Public Security Department arrested Su Zhan, Ma Haozhi and others for the crime of sabotaging production and operation.
But the incident was not completely resolved.
In the turmoil of "seizure of power by force", Su Zhan and Ma Haozhi took Yunyi IncOn the grounds that the agreement to control the operating entity in the mainland was invalid, Xie Fangmin and Zhou Feng were denied a controlling position in Zhou Yunkang.
To this end, in September 2019, in Xie Fangmin and Zhou Feng and Yunyi IncUnder the impetus of other shareholders (excluding Su Zhan and Ma Haozhi), Ark Yunkang reorganized its shareholding structure, re-established the company Fangzhou Limited, and acquired Yunyi Inc. through a series of agreementsThe control of the Mainland operating entities held by it was transferred to Fangzhou Limited.
This means that this reorganization has not been recognized by Su Zhan and Ma Haozhi.
It remains to be seen whether this situation will lay a hidden danger in the equity dispute between the shareholders within Ark Yunkang.
Fang Zhou Yunkang pointed out that Su Zhan and Ma Haozhi did not have any solid legal basis for the restructuring of internal equity, and they could seek recourse from Fang Zhou Yunkang and other shareholders.
At present, Xie Fangmin and Zhou Feng also promised in this IPO that if Su Zhan and Ma Haozhi sue Ark Yunkang and win the lawsuit, they will bear the loss on behalf of the issuer and other shareholders.
Under the hidden concerns of equity disputes, the market is continuing to pay attention to whether Ark Yunkang, which has submitted the statement for three times, is expected to be successfully listed.
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