We are a private dental services provider in Central China with a focus on Hubei and Hunan provinces, operating an expanding dental service network under the direct chain model in this thriving market. We provide reliable and accessible dental care to communities, dedicated to serving the general public. According to Frost & Sullivan, we ranked first among all private dental services providers in Central China in terms of revenue generated therefrom in 2024, occupying a market share of approximately 2.4%. Over the years, we have been focusing our dental services on addressing the mass market demands, maintaining strong presence in densely populated Central China.
Benefiting from years of efforts to expand our dental service network, the number of our dental institutions in operation increased from 77 as of January 1, 2022 to 86 as of December 31, 2024, and further to 92 as of the Latest Practicable Date, including 4 for-profit dental hospitals, 80 for-profit dental out-patient departments and 8 for-profit dental clinics covering 8 cities in Hubei and Hunan provinces. These three types of dental institutions are subject to different regulatory requirements and standards mainly in terms of dental chairs, departments, medical professionals and scale. See “Industry Overview — The Dental Services Market in China — Participants of Dental Services Market in China.” Pursuing a single-brand strategy, all of our dental institutions are operated under the unified brand name “愛尚大眾口腔” together with a trademark of “愛上大眾 ,” ensuring a cohesive and robust identity across our multi-regional dental service network. Most of our dental institutions are located in or adjacent to local communities, providing dental services to residents with ease of access.
We operate a Partnership Program primarily targeting seasoned medical professionals, to underpin the expansion of our dental service network, maintain the cohesion and stability of our core talent team and facilitate our talent team development, all of which constitute our competitive advantages and make our dental service network an ideal entrepreneurial platform for dentists. As of December 31, 2022, 2023 and 2024, 24, 32 and 37 dentists were minority shareholders of our dental institutions under the Partnership Program, respectively. Upholding the principle of “direct chain and direct partnerships (直營連鎖、直接合夥),” the Partnership Program has enriched our medical professional resources and fueled the expansion and profitability of our dental service network. In addition, our professional talent team led by seasoned dental experts and supported by our Technical Committee (技術委員會) consistently delivers quality dental services with advanced medical capabilities.
We place significant importance on our dentist resources and maintain a stable and broad dentist team. There were 280 dentists in total practicing at our dental service network as of December 31, 2024. For the years ended December 31, 2022, 2023 and 2024, the retention rate of dentists practicing at our dental service network for over three years reached approximately 87%, 89% and 90%, respectively. For the years ended December 31, 2022, 2023 and 2024, staff costs for dentists amounted to RMB57.8 million, RMB65.8 million and RMB58.2 million, accounting for 22.1%, 24.1% and 22.8% of our cost of sales for the same years, respectively.
We did not rely on any particular dentist during the Track Record Period. The revenue contributed by our top five dentists in each year during the Track Record Period, in terms of revenue contribution, accounted for approximately 8.0% to 10.0% of our total revenue each year.
Our dental services consist of general dentistry services, implantology services and orthodontics services, addressing oral health needs of customers of all ages. Leveraging our community-focused dental care, we have accumulated a loyal customer base during the Track Record Period. For the years ended December 31, 2022, 2023 and 2024, we served 276,310, 296,859 and 283,640 customers and recorded 708,651, 768,809 and 748,632 customer visits, respectively, with average spending per customer visit of RMB578, RMB575 and RMB544, respectively.
Our Business Model
During the Track Record Period, we generated revenue from provision of a comprehensive range of dental services, including (i) general dentistry services, (ii) implantology services, and (iii) orthodontics services.
General Dentistry Services
As a customer-centric dental services provider located in densely populated areas and adjacent to communities, we focus on the daily oral health of our customers. Through regular oral health management and early intervention of dental diseases, we help customers mitigate the risks of worsening symptoms and avoid costly treatments of serious diseases. As healthy teeth and gums improve the comfort, appearance and confidence of customers, we believe regular oral health management not only tackles customers’ basic and general dental problems but also enhances their overall quality of life. Our general dentistry services mainly cover (i) prosthodontics; (ii) oral medicine; (iii) oral surgery; and (iv) pedodontics. For the years ended December 31, 2022, 2023 and 2024, we recorded 520,961, 549,907 and 516,570 customer visits to general dentistry services, respectively, and the average spending per customer visit for general dentistry services was RMB408, RMB431 and RMB421, respectively, for the same years. See “Business — Our Dental Services — General Dentistry Services” for more details.
Implantology Services
Our implantology services aim to provide customers with a teeth replacement solution to replace the natural teeth with implants and achieve improved functionality and aesthetics. Through precise surgery and professional care, we can achieve successful implantation with long-term stability of the implants. Our implantology treatments utilize different types of dental equipment and consumables, mainly including cone beam computed tomography machines, implant machines, ultrasonic bone scalpels, implant membrane tacks, implant fixtures, bone grafts, abutments, drills and other dental tools for implants. For the years ended December 31, 2022, 2023 and 2024, the number of customer visits to our implantology services amounted to 59,763, 78,759 and 86,810, respectively, and the average spending per customer visit for implantology services was RMB1,953, RMB1,562 and RMB1,332, respectively, for the same years. See “Business — Our Dental Services — Implantology Services” for more details.
Orthodontics Services
As an important specialty of dentistry, orthodontics not only focuses on the aesthetic alignment of teeth but also, more importantly, aims to restore and maintain normal function of mouth, such as chewing, speaking and facial aesthetics. Our orthodontic treatments use a range of dental equipment and consumables, mainly including metal brackets, ceramic brackets, clear aligners and other appliances. For the years ended December 31, 2022, 2023 and 2024, we had 127,927, 140,143 and 145,252 customer visits to our orthodontics services, respectively, and the average spending per customer visit for orthodontics services was RMB627, RMB583 and RMB510, respectively, for the same years.
Source: Dazhong Dental (02651) Prospectus (IPO Date : 2025/06/30) |