Suning Global: Stepping On The Track Of "Medical Beauty" Needs To Be Observed

Suning global (000718. SZ), whose main business was changed to real estate development, didn't stop there in 2005.

In 2016, Suning global entered the medical and aesthetic industry as a real estate enterprise transformator, and launched a series of medical and aesthetic projects.

No one expected that by 2021, the concept of "medical beauty" will become the most popular concept in the capital market.

In 2016, the company and Suning global group jointly invested and established a 5 billion yuan scale medical and aesthetic industry fund Zhenjiang Suning global medical and aesthetic industry fund (limited partnership). After that, through the medical and aesthetic industry fund (45% shares of listed companies), it acquired four medical beauty hospitals, which were respectively distributed in Beijing, Shijiazhuang, Tangshan and Wuxi.

In 2017, Suning global acquired 90% equity of Shanghai Tianda medical beauty hospital Co., Ltd. (hereinafter referred to as "Shanghai Tianda hospital") with 63.56 million yuan through Shanghai Suya Medical Technology Co., Ltd. (hereinafter referred to as "Suya medical"), showing its determination to attack the medical and aesthetic industry.

In the context of the popularity of the concept of "medical beauty", Suning global has intensively accepted six groups of investors since May this year.

Participants in the survey include Societe Generale Securities, Haitong Securities, CITIC construction investment, Dacheng Fund, Harvest Fund, Ping An Property Insurance and other securities companies, funds and insurance companies.

Suning Global's share price was only 3.90 yuan / share at the end of March, reaching a high of 11.21 yuan / share on June 1.

Is Suning Global's medical and American business profitable at present? Can the rising market be sustained?

Two clues combined into layout Roadmap

In Suning Global's medical and aesthetic layout, a very key clue is that in July 2016, Suning global health, a wholly-owned subsidiary of Suning global health, and a subsidiary of Suning global group, Shanghai Suning international and Suning global capital, the subsidiaries of Suning global group, jointly initiated the establishment of Suning global healthcare industry fund (limited partnership), Subsequently, it was officially named "Zhenjiang Suning global medical and aesthetic industry fund (limited partnership)", and the latest situation is that Suning global holds 45% of the shares.

Shortly after the establishment of the medical and aesthetic industry fund, it invested in Beijing perfect creative technology company, the main product of which is "gengmei app".

In addition to subscribing for part of its series C preferred shares with a total subscription amount of US $2083.3, the fund also provided RMB convertible bond loans equivalent to US $20 million.

Since then, the medical beauty industry fund has launched a package of acquisitions, including 80% shares of Hanchen medical cosmetology in Wuhan and Kunming hospitals, 100% equity of Guangzhou Yanya Medical Co., Ltd., and 80% equity of Shanghai GANGLONG traditional Chinese medicine clinic Co., Ltd., Shanghai Gubei Yueli Medical Beauty Clinic Co., Ltd., and Shanghai Yuemei Medical Beauty Clinic Co., Ltd, 11 transactions including 80% equity of Shanghai Ganghua hospital, with a total transaction amount of about 329 million yuan (including no more than 240 million yuan planned to subscribe for 80% equity of Shanghai Ganghua hospital).

It can be seen that compared with the "strong regulation" industries such as medicine, medical devices and public hospitals, the medical and aesthetic segmentation field which is biased towards consumer medicine is undoubtedly more favored by real estate enterprise transformators such as Suning global.

In the 2017 annual report, Suning global mentioned that the medical and American resources acquired by the medical and aesthetic industry fund will be gradually incorporated into the listed company system after being cultivated and sorted out.

According to the industrial and commercial information, among the foreign investment of Zhenjiang Suning global medical and aesthetic industry fund, four medical beauty companies are in "survival" status, namely, Beijing Suya medical beauty hospital Co., Ltd., Shijiazhuang Suya meilianchen medical beauty hospital Co., Ltd., Wuxi Suya medical beauty hospital Co., Ltd. and Tangshan Suya meilianchen Medical Beauty Co., Ltd., each with 99% shares.

The remaining 8 companies, including Jinan Suya Medical Technology Co., Ltd. and Hangzhou Suya Hospital Management Co., Ltd., are in "cancellation" status.

Another clue of Suning Global's layout of medico is the joint venture with South Korea ID health industry group to establish Shanghai Suya Medical Technology Co., Ltd. (hereinafter referred to as "Suya medical"), in which Suning global, a wholly-owned subsidiary of Suning global, holds 60% of the shares and ID group holds 40% of the shares.

At present, Suya medical holds 90% equity of Shanghai Tianda medical beauty hospital Co., Ltd. and 100% equity of Chongqing Suya medical beauty hospital Co., Ltd.

In July 2017, Suning global acquired 90% equity of Shanghai Tianda hospital for 63.56 million yuan through SUA medical.

Suning Global's layout in the field of medicine and beauty can be said to be advancing rapidly.

Track growth remains to be seen

"One is to look at profitability, the other is to look at growth." In an interview with a major investment bank in Beijing, Suning Global's choice of the track was positive.

The current hot spot seems to be the fulfillment of Suning Global's industrial vision at that time.

Generally speaking, Suning global currently holds one medical and American Hospital (Shanghai Tianda hospital) and shares in four medical and American hospitals (medical and American hospitals under the medical and aesthetic industry fund, accounting for 45% of the shares, are distributed in Beijing, Shijiazhuang, Tangshan and Wuxi).

On June 15, Suning global also mentioned that "the five hospitals are medical beauty hospitals with an area of 3000-6000 square meters. The business involves plastic surgery and injection. The proportion of light medicine and beauty is about 40% - 50%, surgery is 20% - 30%, and dermatology is 25% - 30%

It is worth noting that in this meeting, it was specially mentioned that "the marketing method is mainly to bring the old with the new, and at the same time, new media such as live broadcast are also used. The competition of medical and aesthetic industry is technology, management, service and so on. After years of training and improvement, the company has strong competitiveness and brand reputation in the regional market

Suning global specially mentioned that Shanghai Tianda hospital has the advantage resources to carry out the qualification of "facial bone contour plastic technology", and has the qualification of grade 4 surgery, which is the highest level in the industry.

As the concept of "medical beauty" was once concerned by the market, Suning global released the announcement of stock price changes in the evening of January 7 after three consecutive trading limits from January 5 to January 7 this year, and the financial data of Shanghai Tianda hospital were made public.

From the current data, the performance of Shanghai Tianda hospital is not as good as its medical and aesthetic layout.

From 2017 to 2019 and the first three quarters of 2020, Shanghai Tianda hospital achieved revenue of 60.1479 million yuan, 36.5549 million yuan, 18.0664 million yuan and 12.2961 million yuan, respectively, with corresponding net profits of - 4.9465 million yuan, - 15.9109 million yuan, - 16.3195 million yuan and - 6.3709 million yuan, respectively, which is still in deficit.

This also means that in the closed loop of the capital story, the top priority is to make the relevant assets profitable.

In the above announcement of stock price changes, Suning global also stressed the risk, "the medical and beauty industry accounts for a relatively small proportion of the company's total operating income, and is still in a state of loss, not reaching a profit; At present, the company has not yet implemented the acquisition of assets such as biological medicine and medical devices in the medical and aesthetic industry.

A close look at Suning Global's revenue structure shows that real estate is still its main business, while medical and aesthetic industries account for a relatively small proportion: of the total revenue of 4.287 billion yuan in 2020, the real estate industry accounts for 94.24%, the construction industry accounts for 1.47%, the hotel industry and other industries account for 2.26%, the cultural and creative industry accounts for 1.04%, and other businesses account for 0.98%.

Insufficient compliance

Beyond profitability, compliance may be the biggest worry for the medical and beauty industry.

On the evening of June 10, the National Health Commission, the central network information office, the Ministry of public security, the General Administration of customs, and the General Administration of market supervision jointly issued a document, which decided to jointly carry out the special rectification work against illegal medical beauty services from June to December 2021, and issued the special rectification work plan for cracking down on illegal medical beauty services.

Some institutional investors have also asked Suning global the impact of questions. In this regard, Suning global believes that "the joint supervision of eight ministries and commissions is good news for legal and compliant medical and American medical institutions, and is conducive to promoting the standardization of medical institutions in the medical and aesthetic industry. In fact, what the eight ministries and commissions really want to crack down on is illegal medical treatment. The red head document issued this time clearly points out that illegal medical and beauty service places in hotels, beauty salons, clubs and residential buildings are also the focus of the crackdown. This time, we will make it clear. "

Suning global also mentioned that "Shanghai Tianda hospital, which is controlled by the company, has the advantage resources to carry out" facial bone contour plastic technology "qualification, and has the qualification of grade IV surgery. The other four medical and American hospitals (45% of the company's shares) under the industrial fund all have the qualification of first-class specialized hospitals, All of them have professional qualification. "

However, the 21st century economic report reporter inquired the public information and found that Shanghai Tianda hospital still had insufficient compliance. Since 2016, Shanghai Tianda hospital has received 15 administrative penalties.

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