Although not in a share, but a share has always been a legend of Corning hospital. Kangning hospital, which became famous in the first World War because of the saying that “there are more than 180 million people suffering from mental illness in China”, rushed to the A-share IPO again two years after it was first launched. The reporter of financial investment news learned from the official website of Zhejiang securities regulatory bureau that Kangning hospital and securities companies, which have been listed in Hong Kong stock market, signed the guidance filing document on September 18 and accepted the listing guidance of Guotai Junan. < / P > < p > Corning hospital has always been obsessed with A-share, and started the IPO process as early as 2018. Unfortunately, two years later, Corning hospital made a comeback. Financial investment news reporter noted that in addition to the unique business of psychotherapy, its performance also makes the market enjoy talking about. Two years later, performance seems to continue to grow. According to the interim report for 2020 disclosed by Hong Kong shares of Kangning hospital, the first half of this year achieved revenue of 465 million yuan (not audited), and the whole year of 2019 achieved revenue of 379 million Hong Kong dollars (not audited), an increase of 22.8%; in the first half of this year, the net profit was 28.9 million yuan, a year-on-year decrease of 30.1%. As for the decline of net profit, Corning hospital said that the main reason was that the one-time income of about 45 million yuan was included in 2019, which raised the base. If the above one-off impact is not included in the comparison basis in 2019, the net profit attributable to shareholders of the company increased by 109.9% during the reporting period. However, after a long time, the gross profit rate of Kangning hospital is on the decline. According to the prospectus, from 2014 to 2016 and from January to June 2017, the comprehensive gross profit margin of Kangning hospital was 38.98%, 38.06%, 34.51% and 32.49%, showing a downward trend. According to the Hong Kong stock financial report, in 2018, the overall gross profit margin of Kangning hospital was 33.2%; in 2019, the overall gross profit dropped sharply to 24.3%; in the first half of 2020, the gross profit was 27.6%, with great fluctuation. The year of 2019 is very special for Corning hospital. Due to the control of medical insurance fee, the growth momentum of Corning hospital will stop abruptly. At the same time, it can be seen that Corning hospital relies heavily on medical insurance. It is understood that from 2014 to the first half of 2017, diagnosis and treatment services accounted for 70% of the revenue of Kangning hospital, and the drug revenue accounted for 25%, of which 90% of the total were medical insurance compensation items. After all, the treatment of mental illness includes hospitalization, long-term medication, etc., and it is easy to relapse, and the treatment cycle is long, so the total cost is not cheap, and the general family is difficult to afford. The coverage of medical insurance enhances the payment ability of patients, thus promoting the performance growth of Corning hospital. < / P > < p > in fact, since 2017, the settlement amount of public medical insurance accounts for more than 50% of the cash received by Corning hospital in the current sales of goods and services. Therefore, with the deepening of health care reform, the biggest buyers of medical care in the future are social insurance and the government’s direct financial budget. In the long run, it is an inevitable trend to control medical insurance fees. Private hospitals, including Kangning hospital, which are more dependent on medical insurance, will face great pressure. < / P > < p > Kangning hospital is not unprepared for the possible pressure of medical insurance cost control. The reporter of financial investment newspaper noted that the annual report of 2020 showed that the net profit of hospital revenue increased (excluding the one-off income in 2019), which was mainly due to the expansion of the hospital and the growth of the operating income of the original hospital. To change it into vernacular is to increase the number of mental hospitals and increase the income of existing hospitals. The former is easy to understand. All enterprises want to be bigger and stronger. They will reduce costs and increase income after forming scale advantages. In the 2020 interim report, Corning hospital also clearly proposed to continue to invest in joint ventures and provide hospital management services to expand its medical network. The latter is particularly noteworthy. According to the financial report, the operating income of the company’s own hospitals in the first half of the year was 439 million yuan, an increase of 21.8% compared with the same period in 2019; the average daily expenses per bed in the self owned hospital increased, driving the gross profit rate of the self owned hospital to 26.3%, which was 22.3% in the first half of 2019. < p > < p > for details, as the number of beds increased by 22.5% year on year, the utilization rate decreased a little, but the number of days of inpatient beds increased. Along with it, the drug income, medical service and treatment in hospital also increased correspondingly, while the drug price decreased. Compared with the gross profit, the gross profit of drug sales was the lowest, which was 14.9%, while the gross profit of treatment and general medical services was the highest (excluding real estate business), nearly 30%. It can be seen that in 2020, Kangning hospital has consciously reduced the proportion of drugs in the revenue, and increased the proportion of treatment and medical services. I wonder if it can be understood that the time for patients to be hospitalized becomes longer, and the corresponding treatment costs increase? There may be a risk of overtreatment. < p > < p > the reporter of financial investment news entered the word “complaints from Kangning hospital” on the search engine and jumped out of many relevant pages, among which some netizens mentioned the over treatment. In addition, the latest closing price of Corning hospital, which was listed in Hong Kong stock market in November 2015, was HK $24, and its share price was cut back from its peak on the next day of listing. Can Kangning hospital succeed in the second “running a” mode with the decline of gross profit rate and the risk of overtreatment? Financial investment news reporter will continue to pay attention to it. < / 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.