On July 12, Sinohealth (02361.HK), a leading domestic provider of big-data solutions for the healthcare industry, successfully listed on the Hong Kong Stock Exchange. Prior to the IPO, Glory Fund, together with Nansha Jinkong, jointly established a dedicated fund to participate in the project’s investment.

Glory Fund’s comment

Glory Fund believes that industry-knowledge-graph-based big-data service providers hold tremendous commercial value for supporting business-intelligence decision making and market research. We have deployed capital across several top domestic big-data service providers that are deeply focused on different industry verticals, including Sinohealth and NewData Intelligence.

With the continued development of the digital economy and rising informatization in healthcare, society’s capacity to collect, apply and manage medical data is improving rapidly, and the volume of healthcare data is growing explosively. Following the successful listings of companies such as Yidu Tech, YimaiTong and Zhiyun Health, the health big-data sector has entered a period of rapid growth. Sinohealth is one of the few high-quality companies in the sector that has already achieved scaled profitability at this stage.

Company overview

Founded in 2007, Sinohealth is dedicated to providing enterprise-level big-data solutions to clients across China’s health industry. Its main businesses include data-insight solutions, data-driven publications and events, and SaaS services. Backed by the Sinohealth Engine/data & AI lab, and leveraging professional health-domain data processing capabilities and an exclusive off-hospital data collection network, Sinohealth’s health-industry ecosystem resources platform serves as the engine for market conversion. The company provides customers with a closed loop of data decision-making and digital connectivity services for off-hospital market operations.

Market position and financials

Sinohealth ranks first in China across three key dimensions related to healthcare product and channel big-data solutions: revenue generated, number of enterprise customers, and the number of top healthcare product manufacturers served. The company’s revenues for 2019–2021 were RMB 178 million, RMB 202 million and RMB 324 million, respectively; gross margins were 59.7%, 64.4% and 59.4%; and net profits were RMB 54.38 million, RMB 65.33 million and RMB 71.98 million.

Data assets and coverage

Sinohealth owns the industry’s largest primary health-industry database and a retail market-insight database. Its data collection network covers 299 prefecture-level cities and above in China and serves over 900 high-quality enterprise customers. Sinohealth builds its competitive edge on technology, using leading big-data processing capabilities to fully mine data value and efficiently apply insights across business scenarios. The company supports clients in identifying and evaluating market opportunities, selecting niche markets, developing marketing mix and budgets, commercial connections and supply-chain services, off-hospital terminal sales activation, pharmacy staff/consumer education, patient management, and marketing performance monitoring and strategy optimization.

Ecosystem and platform

Sinohealth has developed a large and influential health-industry platform. Offline, it organizes ecosystem events that connect high-end industry resources and provide forward-looking guidance to the sector; online, it operates media channels that reach vertical health users and the Healthcare Link network platform for health-industry participants, which connects more than 740,000 professionals.

Outlook

Following this successful listing, Sinohealth will continue to build a global ecosystem-style industry resource aggregation platform to empower the development of the biopharmaceutical industry.

Glory Fund is confident in Sinohealth’s technological strength and strategic direction. We will provide long-term support for Sinohealth’s development and contribute to the digital transformation of China’s biopharmaceutical industry and the realization of the national “Healthy China” strategy.