After more than ten years of development, China's private dental clinics still have such an impression. However, from the demand side, with the aggravation of the aging problem and the neglect of the older generation on tooth health, more and more tooth missing and tooth loss phenomena are crowding them into the dental clinic with doubts.

The very important reason is that it's very expensive to go to a regular third class hospital to fill a tooth. It's often the price of a car, so that hospital doctors will also persuade the elderly with serious tooth deficiency to go to private clinics for inquiry. Today, private dental clinics have reached a new stage: promising capital, broad market and formal operation. In the sea of great opportunities, there are more and more people fishing at sea.

Recently, Dr. Ya medical Holding Group Co., Ltd. announced a prospectus to be listed on the main board of Hong Kong. The sponsors are CICC and CSCI. Dr. Fang, who dominates in East China, also came.

With an annual income of 800 million, why is Dr. Ya anxious to go public? Who is Dr. tooth?

The company, which has been engaged in dental implant services, orthodontic services and comprehensive dental services for 11 years, is well-known in East China. According to the consulting report, in terms of annual income in 2020, the company is the largest medium and high-end private chain oral medical service provider in East China, the second largest private oral medical service provider, and the largest oral medical service provider in Jiangsu Province.

According to Dr. Ya's prospectus, Dr. Ya has been profitable for three consecutive years. In fact, the industry has been saying that gold eyes, silver teeth and copper bones. As early as ten years ago, a group of enterprises led by Aier ophthalmology took the lead in grasping the outlet of private ophthalmic chain hospitals. In recent years, the acceleration of aging has made the market focus on dentistry. The industry chain involved in the dental field is very long, involving not only upstream consumables, midstream distribution, but also downstream oral services.

In recent years, more and more capital parties have invested heavily in the field of oral services. So far, Dr. Ya has disclosed two rounds of financing. The angel round was completed in 2017. The investors are Beijing CICC Taian and Hongding investment. The latest round of equity financing was in May this year. The investors include Yuanhe holdings and China Merchants capital, which is also the last round of financing before IPO. Since its establishment in 2010, angel round financing was not carried out until 2017. A very important reason is that Dr. Ya doesn't need money.

Unlike TMT, chip, technology and other projects, dental clinics such as Dr. dental have high gross profit and strong cash flow. From the perspective of revenue, from 2018 to the first half of 2021, Dr. Ya achieved revenue of 632 million yuan, 871 million yuan, 835 million yuan and 507 million yuan respectively. Even in 2020, affected by the epidemic, the revenue only decreased slightly and the profitability was not weak. There is a strong return in the first half of this year.

In addition to the loss of RMB 3.9 million in 2018, Dr. Ya achieved profits from 2019 to the first half of 2021, recording adjusted net profits of RMB 23.6 million, 85.3 million and 61.6 million respectively.

The birth of profiteering industry

In many people's opinion, the dental industry has always been very unpopular, because few people really go to the dentist, that is, they go only when they have a bad toothache.

But in fact, with people's attention to health problems, the oral care industry has developed rapidly, so it is profitable to open chain hospitals or small clinics.

You know, China has a population of 1.4 billion, whether children, adults or the elderly, will be more or less troubled by oral diseases. In addition, more and more people take the initiative to enter dental institutions in order to pursue the tidiness and whitening of teeth, so the daily dental care and correction business is very good.

It is reported that after the "technical processing" of various dental clinics and hospitals, the price of a denture with a purchase price of only a few tens of yuan has doubled, ranging from hundreds to thousands to tens of thousands. It can be seen how much money the dental industry makes.

On the other hand, because the cost of treating teeth is too expensive, many people "default" that dentistry is a lucrative industry. Therefore, a large amount of capital flows into this industry.