Industry prospect advantage

◆ The demand of patient groups is large, and the awareness of oral health care is improved

      According to the data of the "Fourth National Oral Health Epidemiological Survey Report", compared with 2005, the caries rate of children and young adults showed an upward trend, of which the caries rate of children increased more significantly; the report also pointed out that among the residents aged 35 to 74, about 35% of the male and female residents had missing teeth that had not been repaired, in addition, periodontal health and denture problems were also not optimistic, and the oral health status of middle-aged and elderly residents should be paid attention to.

      According to the National Bureau of Statistics, the per capita disposable income of urban residents in 2020 was close to 44,000 yuan, an increase of 40% during the "13th Five-Year Plan" period. With the steady growth of income, the consumption capacity of Chinese residents in the field of medical and health care has gradually increased, especially in the field of "improved medical treatment" such as stomatology.

◆ The growth rate of private dental institutions is rapid

      According to the "China Health Statistics Yearbook (2012-2020)" and the data of the Med+ Research Institute, as of 2019, there are 885 stomatological hospitals in China, of which 723 are private hospitals, accounting for about 82%. Between 2011 and 2019, only 4 public stomatological specialty hospitals increased, and private stomatological specialty hospitals increased by 564, with a compound annual growth rate of 21%.

◆ Capital investment to accelerate the development of the industry

     In the whole year of 2021, the dental industry will have an average monthly financing event, and the total amount of financing will exceed 3 billion yuan. It is worth mentioning that Meiwei Dental has raised two rounds a year, of which a single transaction exceeds 1 billion yuan, and Rare Dental has completed nearly 200 million US dollars of Series E financing, which is the highest financing amount in the industry in recent years. In addition, Rare Group, China Dental Medical Group, and Dr. Dentistry all submitted prospectuses.

      High-quality resources in the industry are scarce

◆ The particularity of the medical industry

      Due to the particularity of the medical industry itself, the social responsibility is large and cannot be completely profit-seeking. Once a medical dispute or accident occurs at the cusp of public opinion, it will not only damage the corporate image, but also be right

 ◆ Private institutions lack high-quality resources

      According to the data issued by the Eggshell Research Institute, from the institutional side, the number of clinic medical institutions accounts for more than 90%, but only 53% of oral diagnosis and treatment services are provided, while the number of hospital medical institutions accounts for less than 10%, but 47% of oral diagnosis and treatment services are provided. The special policy requirements during the epidemic have also allowed some patients to transfer from private hospitals to public hospitals.

      From the perspective of doctor resources, according to the Health Statistics Yearbook, the number of registered dentistas in China in 2018 was only about 200,000, which means that the number of dentists per million people is 150, while most of the overseas developed countries are between 500 and 2,000. According to the Society of Stomatology, there is currently a shortage of more than 150,000 dentists. The scarcity of dentists has led to high labor costs. Some dentists prefer to work in public hospitals rather than private hospitals.