Once, when a well-known actress was filming a kiss scene, her husband who came to visit outside the venue was “worried” about her 3 million porcelain teeth.
Actually, the actor’s mouth is full of cosmetic teeth, Also known as “beauty crown”.
This technique requires grinding down the original teeth, Put a porcelain crown on it for cosmetic purposes. However, the damage to the original healthy teeth is irreversible, so this technique is not recommended first in the dental department of a public hospital.
Although porcelain teeth have their medical indications range, but because its effect manifests much faster than correction. Therefore, it is often used as a way to quickly achieve beauty.
For this reason, porcelain teeth are also attached more consumption attributes. Even if it needs to spend 3 million, it still has its specific consumer group.
outside public hospitals meeting basic oral health needs , and private hospitals are the best landing scenarios for consumer medical care.
On March 22, Real Group successfully landed in Hong Kong Exchange. As a result, the signboard of “the first high-end dental chain” has finally belonged.
Oral medicine has huge growth potential
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Riel Group stated in the prospectus that 75% of the funds raised from the listing will be used for business expansion, opening new hospitals and clinics in existing and new cities .
Expansion is a consistent path in the development of any chain brand . Behind the expansion of dental chain brands, there is a huge market demand as support.
Health Statistical Yearbook data show that in 2019 the Department of Stomatology< span>(Excluding outpatient departments, clinics, and all medical institutions outside the village clinic)The number of outpatient and emergency visits was 174 million, a year-on-year increase of 11.7%. According to the forecast of Guohai Securities, the actual number of dental patient visits nationwide in 2019 is about 317 million.
From 2014 to 2019, dental clinics in my country The compound growth rate of medical visits is nearly 11%.
But it doesn’t stop there, take dental implants as an example . According to the statistics of the Prospective Industry Research Institute, the penetration rate of dental implants in my country in 2019 is about 22 per 10,000 people. In the United States, it reached 95 per 10,000 people as early as 2018, a difference of more than 4 times.
According to China Oral Medical Prospectus, in 2020 The penetration rate of dental services in China is about 24.0%, which is nearly three times lower than that of the United States during the same period.
In addition, oral problems are High incidence. Among them, the caries rate of permanent teeth was between 42% and 98%, the calculus detection rate was between 61% and 97%, and the dentition loss rate of middle-aged and elderly people was between 32% and 82%.
However, according to the National Oral Epidemiological Survey , the proportion of dental treatment in all age groups in my country is still at a low level.
It can be seen that there is still a lot of oral medicine in China. There is a lot of room for growth, and it is far from saturated.
Rapid expansion with low threshold p>
The strong actual and potential demand has attracted more capital and dentists to join it.
In my country, there is a Personnel and facilities are clearly defined. In terms of site requirements, the minimum construction area of each dental chair in the dental hospital should be 30 square meters, and the clinic should reach 25 square meters.
According to this calculation, except for the need to go through relevant procedures and equipment In addition to employees, the actual threshold for opening dental service institutions is very low.
Guohai Securities pointed out in the research report that with For example, a clinic with 6 dental chairs has a total area of about 450 to 500 square meters, and the total investment in the early stage is between 3 million and 6 million yuan; while a dental hospital with 30 dental chairs has a total investment of about 15 million to 6 million yuan. 23 million yuan.
Source: Guohai Securities
Low threshold and strong reproducibility have accelerated the expansion of private dental hospitals.
From 2015 to 2020, the number of oral medical institutions in my country has rapidly increased from 64,100 to 87,700. According to the Real Group, the number of oral medical institutions in my country will exceed 140,000 in 2025.
Zou Qifang, the founder of Real Group, once planned that in 2025 Achieve the “Thousand Stores Plan”. However, this goal was not realized in the end, but at present, the Real Group still has 7 dental hospitals and 104 clinics. As of the end of 2020, its number of dental chairs ranked fourth in the country.
Tongce Medical also disclosed in its latest annual report that currently The company has 37 hospitals in Zhejiang Province, and Jiande, Binjiang, Future Science and Technology City and other hospitals are in the stages of preparation, construction, and acceptance. In addition, 21 branches have completed project approval and are about to start construction.
Dr. Ya also disclosed the future in the prospectus Three-year expansion plan. At present, the number of new establishments planned by the company has reached 43.
To the economically developed places Go
despite the header All dental chain brands are accelerating their expansion, but in the face of a huge market, no one can achieve a monopoly.
According to the Frost & Sullivan report, press In terms of revenue, the top five private dental hospitals in China will only account for 8.5% of the market share in 2020.
However, from Tongce Medical, Real Group and In terms of the distribution of their respective medical service institutions, dental doctors are obviously concentrated in economically developed areas.
Tongce Medical mainly focuses on Zhejiang Province. According to the 2020 China Health Statistical Yearbook, the number of dental emergency patients in Zhejiang Province in 2019 was 11.85 million, second only to Guangdong Province and second in the country.
According to the 2020 Zhejiang Statistical Yearbook, in 2019 Hangzhou and Ningbo have the highest per capita disposable income in the province, at RMB 59,000 and RMB 57,000 respectively. According to other statistics, the dental service market size of the above two cities accounted for 29.6% and 18.0% of the overall market size of Zhejiang Province respectively.
Dr. Ya is more inclined to southern Jiangsu. At present, the company has a total of 31 service agencies, of which 19 are concentrated in Suzhou City, Jiangsu Province.
Source: Haitong Securities Research Report
As can be seen in the prospectus of the Real Group, the company has taken a different approach and chose a national expansion strategy. Its service agencies are mainly located in first-tier cities, and have already touched the two companies mentioned above. “Base Camp”.
Source: Riel Group Prospectusspan>
In addition to basic oral diseases, the current private oral medical projects are more Most of it is to meet the needs of patients who “love beauty”. Therefore, oral medical treatment can be called “special needs medical treatment” to a certain extent, and the consumption attribute is stronger.
Expenditures on dentistry for all ages, basically Mainly at own expense. This is also an important reason why brand chains are deeply rooted in first-tier cities.
According to the National Oral Epidemiological Survey, 3 The proportion of out-of-pocket dental expenses for patients aged 4, 5, 35-44, 55-64, and 65-74 were 76.1%, 80.1%, 86.3%, 83.7%, 85.9%, and 86.2%, respectively.
“unfriendly” High-end dental care
The actor Liu Tao mentioned in the opening part has a mouthful of porcelain teeth worth 3 million, which is also the source of the story of “one mouthful of teeth, one suite”.
Indeed, if you want to receive services in a private dental hospital, you must first All you have to do is check your bank card balance.
According to the Health Statistics Yearbook, the 2019 Dental Specialist Hospital The total revenue was 28.8 billion yuan, and 44.98 million people were treated. According to this calculation, the unit price of a dental specialist hospital is about 640 yuan per person.
If you want to be “beautiful”, orthodontics is One of the ways with the least side effects. However, the price is also “not beautiful”. Taking a certain brand as an example, the most economical conventional wire bracket orthodontic treatment requires at least 5,000 yuan, while the starting price of a higher-end invisible orthodontic treatment requires 15,000 yuan.
Source: Guohai Securities span>
The two brands of the Real Group are more expensive. Conventional metal brackets cost a minimum of 25,000 yuan, and invisible braces can be as high as 65,000 yuan.
Source: Riel Group Prospectus
Rail Group takes the mid-to-high end as its brand positioning and aims to Mostly the upper middle class population. This group of people will have a higher demand for “beauty”.
Source: Riel Group Prospectus
As can be seen in the prospectus, Riel teeth The revenue of a single dental chair for Ke(Riel high-end brand), Ruitai Dental (Riel mid-end brand) in the half year from March to September 2021 They are 870,800 yuan and 557,000 yuan respectively; the unit price of customers is 1,435.6 yuan and 784.4 yuan respectively, which are higher than the average level.
Source: Riel Group Prospectus
According to Frost & Sullivan, The price of dental medical services in public tertiary hospitals is usually used as the pricing reference standard for the entire market. High-end dental services are at least 25% higher than public tertiary hospitals, and about 10% higher in mid-end.
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Compared with ordinary oral medical services, high-end oral medical services can provide patients with a high degree of personalization
It is reported that high-end service associations in public hospitals Subject to certain restrictions. Therefore, mid-to-high-end dental medical services are the main business model of private dental hospitals.
High-end dental is not profitable?
However, a Interestingly, with the IPO of Riel Group, its financial situation has been surprising.
Contrary to our perception, it seems that high-end dental Chain brands don’t make money.
In terms of revenue, 2019-2021< span>(The financial report year is calculated from March to March of the next year), the total revenue of Real Group is 1.080 billion yuan, 1.100 billion yuan, and 1.515 billion yuan respectively. But the losses were 304 million yuan, 326 million yuan, and 598 million yuan respectively. A total of 1.228 billion yuan has been lost in three years, increasing revenue but not profit.
In addition, the company’s gross profit margins were 15.2% and 10.1%, respectively. %, 24.1%. It is lower than the industry average and does not meet the “profiteering” standard.
Source: Prospectus of Real Group
It is also Tongce Medical, a mid-to-high-end dental medical service, with a gross profit margin level of more than 40%, and the gross profit margin in the first half of 2021 46.75%, twice that of the Real Group.
However, Tongce Medical insists on stabilizing Zhejiang Province The internal development strategy, and the national expansion strategy of the Real Group may be the main reason for the low cost advantage.
In 2020, Tongce Medical’s gross profit margin is 45.05% . Specifically, it is 46.91% in Zhejiang Province, but only 28.31% outside the province, which is basically the same as the gross profit margin of the Real Group.
It can be seen that dental chain brands want to expand nationwide The route is not an easy task.
Riel Group said that high-end dental medical groups usually Establishing institutions in prime locations in first-tier cities in China makes services more accessible to target consumers. At the same time, high-end dental care will generally have higher standards and provide higher service facilities and higher privacy to meet the expectations of mature consumers.
Without the support of sufficient scale and brand recognition , the bargaining power between high-end dental medical groups and properties will be greatly reduced, which also means that operating costs will be a lot of expenses.
At the same time, most importantly, dentists are The core asset of service is also a key variable that determines service quality and customer experience.
With competitive compensation and benefits, It is the consistent routine of home dental medical groups to compete for scarce resources.
Retain every dentist at any cost
Dentist reserve is a very important part of the dental chain, and its importance even exceeds a good location.
Statistics show that the average labor cost of dental chain brands It accounts for about 30% of the total revenue, nearly double that of ophthalmology, which is easy to standardize.
Riel Group (Financial report year), employee benefit expenses were 463 million yuan, 502 million yuan, and 585 million yuan, accounting for 42.87%, 45.64% and 38.61% of the total income for the year.
In 2020, Tongce Medical’s labor cost is 637 million Yuan, accounting for 30.5% of the total annual revenue, which has a certain cost advantage compared with the Real Group.
It can be seen that the labor cost becomes the loss of the Real Group main burden. But even so, try to keep every dentist.
As of September 2021, Real Group has 882 There are full-time dentists, and 31.9% of them have been employed for more than five years. The higher salary allows the team to maintain a certain stability. The retention rate of full-time dentists with 3 years or more of work experience was 95.8%.
Source: Riel Group Prospectus
It is worth noting that in 2021 ( Financial report year), the average full-time dentist in Riel Group can bring 1.8748 million yuan of income to the company. If calculated according to the ratio of employee benefits/total income for the year (38.61%), The average annual salary for a full-time dentist should be $723,800.
In addition, the Real Group is also “spending money” for part-time dentists “. Part-time dentists are paid a percentage of what the patient pays, with a minimum of RMB 500 to RMB 1,000 per working day.
Looking from Liepin.com, a senior dentist in Real Group The monthly salary is above 30,000 yuan. The monthly income of orthodontists in Beijing Jinsong Dental can reach 80,000 to 110,000, and the salary is 14.
Source: Screenshot of Liepin.com Real Group Recruitment Information
Source: Screenshot of Liepin.com Jinsong Dental Beijing Recruitment Information
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Behind the high salary, the scarcity of dentist resources is revealed.
175 dentists per million population in China in 2020 people, compared with 608 and 810 in the United States and Europe. Assuming that the number of dentists per million population in my country reaches the median of 700 in Europe and the United States, then according to the population base, the gap of dentists in my country is about 750,000.
According to the data from the Health Statistics Yearbook, the oral The number of practicing (assistant) physicians is 245,000.
Although our 2019 dental graduates were promoted to 35,800 people, but the raw water is stillHowever, it is difficult to quench the thirst, and the actual shortage of dentists is still large.
“The total number of registered dentists is still lower than that of public and private dentists The demand of medical institutions has led to fierce competition among market participants.” The Real Group admitted frankly.
Deep Binding with the Dentist< /p>
I would rather lose money than let go of a dentist, perhaps the most real in the industry portraiture.
Practitioners try their best to retain and expand talent Hiring efforts to meet expanding demand.
Tongce Medical has specially launched the “Dandelion Project” ”, the company pointed out that in the future, it will maintain a large number of talent recruitment every year, continue to obtain scarce medical resources, and reserve enough dental professionals for the company to meet the needs of the expansion of the new hospital.
Not only social recruitment, but private oral medical care has The focus of recruitment has shifted to the campus, and resources have been scrambled from the very beginning.
Currently, Tongce Medical is cooperating with University of Chinese Academy of Sciences, Zhejiang University, Hangzhou Medical College, University of Berlin Charité Medical University and other medical schools at home and abroad have cooperated.
Rear Group and Peking University School of Stomatology, Sichuan University West China School of Stomatology, Capital Medical University and other institutions have maintained long-term cooperative relations. In addition, the Real Group and Peking University School of Stomatology have also established the Real Scholarship Program to provide financial aid to qualified candidates.
“By doing this, Instill the company’s service standards and philosophy into the practice of students from the early stage, and cultivate their loyalty.” The Real Group said.
Furthermore, in June 2021 Registered a platform in the British Virgin Islands to hold equity-incentive shares for company employees. In this regard, the Real Group explained that it “attracts, retains and motivates company directors, employees, and other participants.”
In fact, as early as the A round financing of the Real Group, the company has successively issued incentive shares to employees to achieve the purpose of deep binding.
Before listing, Real Group completed a total of A In the 7 rounds of financing to E, except for the D-3 round, the company has issued incentive shares as employee benefits in the other 6 rounds of financing.
Produced by the health industry
Writing｜Lao Zhao next door