China’s largest private psychiatric hospital to break into a share again two years ago, has Kangning hospital solved the problem

Two years and nine months after the previous IPO was rejected, Wenzhou Kangning hospital Co., Ltd. (hereinafter referred to as Kangning hospital) rushed to A-share listing again. On September 30, the official website of Zhejiang Securities Regulatory Bureau showed that Kangning hospital signed the guidance filing document on September 18 and accepted the listing guidance of Guotai Junan. According to Frost & Sullivan research report, based on the company’s revenue in 2016, the company is the largest private psychiatric hospital group in China, ranking the fourth in China’s overall psychiatric market according to the company’s income in 2016. However, the first application of Corning hospital did not pass the meeting. In January 2018, the questions asked in the announcement on the results of the 19th meeting of the 17th IEC in 2018 issued by the CSRC focused on the company’s management output mode, related party transactions, whether it conforms to the accounting standards, etc. Now, more than two years later, have these problems been solved? The first question raised by the IEC is the way of management output. According to the prospectus, Kangning hospital provides management services to other medical institutions and expands the company’s network of medical institutions by means of output management, that is, the management services provided by the company to other medical institutions mainly include recommending and appointing qualified doctors, nurses and management personnel, etc., and the IEC requires the company to state that the hospitals under its management are not included in the scope of merger The reason is whether providing funds and collecting management service fees belong to the behavior of dividends, and whether it meets the requirements of accounting standards. < / P > < p > in fact, the output objects of the above management services also include the related parties of the company. According to the prospectus, the funds of Beijing Yining hospital in the preparation stage were mainly advanced by Kangning hospital. Before the establishment of Beijing Yining hospital, Kangning hospital accumulated 24.773 million yuan of funds in the preparation period. Guan Weili, the legal representative of Beijing Yining hospital, was one of the actual controllers of the hospital. At the same time, as of the date of the signing of the IPO, the company held 32.67% of the equity of Beijing Yining hospital. Another related party focused by the IEC is Pingyang Changgeng hospital. Guan Weili, Wang lianyue and Wang Hongyue once held 31.82% shares of Pingyang Changgeng hospital. However, in April 2015, when Kangning hospital launched the Hong Kong stock IPO, Guan Weili and other three people transferred the above shares to Shenzhen Qianhai Dinghui Fuhai equity investment partnership (limited partnership), which moved Pingyang Changgeng hospital out of the scope of the statement. < / P > < p > it is not difficult to find that the IEC does not “buy” the form of company management output. It requires the company to explain whether Beijing Yining hospital should be included in the consolidation scope according to the principle of substance over form, and whether the equity transfer related to Pingyang Changgeng hospital is not related.

however, from the first mock exam of Corelle hospital in recent two years, the company is deliberately downplaying the mode of management output. Originally, the hospital that provided management services was being incorporated into the company’s network of controlled medical institutions, which may become the company’s new A share. < / P > < p > in the prospectus submitted at the end of 2017, Corning hospital said that it would continue to lay out the network of medical institutions through the “center satellite” mode of self construction and operation or management output. In the 2019 annual report, the company said that in order to use its advantageous energy for the development of its own hospital, the company further reduced the management consulting business and no longer regarded it as the main business accounting and reporting. < p > < p > < p > < p > the daily economic news found that in 2019, in addition to realizing the control of Beijing Yining hospital, the company also held 65% equity of Huainan Kangning hospital through equity transfer, and 64.55% equity of Changchun Kanglin psychological hospital Co., Ltd. through equity transfer and capital increase. According to the company’s 2020 interim report, as of June 30 this year, the number of its own hospitals has increased to 23 and the number of operating beds has increased to 6853. < p > < p > according to the results of the company’s uncensored half year 2020 results released by Kangning hospital, the company’s revenue in the first half of the year was 465 million yuan, with a year-on-year growth of 22.8%; the net profit attributable to the parent company was 36.41 million yuan, a year-on-year decrease of 30.1%. However, if the impact of one-off projects in 2019 is not included, the net profit attributable to the parent company will increase by 109.9% in the first half of 2020. < p > < p > on October 6, the company announced that in the first three quarters of this year, the number of hospital bed days of the company was 1.6364 million, an increase of 21% over the same period of last year, and the number of outpatients was 201600, with a year-on-year increase of 22.6%. In the third quarter, the number of inpatient beds was 606000, up 22.8% year on year, and the number of outpatients was 75800, with a year-on-year increase of 29.6%. < / P > < p > then, is the inclusion of high-quality assets in the financial statements an important reason for the substantial growth of the company’s performance? Does the company have plans for M & a next? If we want to reduce the management consulting business, how will the entrustment agreement between the company and relevant hospitals be concluded? In this regard, on October 14, the reporter called Kangning hospital, but the phone was not connected until the press release. As for the actual controller, the guidance and filing public documents show that the company’s chairman Guan Weili and his spouse Wang lianyue jointly hold 29.34% of the company’s shares, which are the controlling shareholder and actual controller of the company. According to the relevant announcement, Guan Weili founded the company in February 1996. He worked as a clinician in Wenzhou psychiatric hospital from August 1987 to December 1993. Wang lianyue joined the company in January 1998, mainly responsible for the overall hospital operation and business development of the company. He worked as a nurse in Wenzhou psychiatric hospital from August 1988 to December 1997. In addition, Wande data shows that Wang Hongyue and Xu Yi hold 5.28% of the company’s shares, and Wang Hongyue is Wang lianyue’s sister. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks. < p > < p > Chinanet is a national key news website under the leadership of the Information Office of the State Council and managed by China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website releases information 24 hours a day, which is an important window for China to carry out international communication and information exchange.