Easy Health Group aims for a Hong Kong Stock Exchange listing: backed by IDG and other investors, technology enhances health and insurance services market

On January 28, 2025, Easy Health Group officially filed its IPO application to the Hong Kong Stock Exchange, planning to list on the Main Board. CICC and China Merchants Securities (International) are joint sponsors. It is noteworthy that the company has a strong shareholder lineup, including IDG, Sun Life Insurance, Tencent and other well-known institutions, among which IDG's holding ratio exceeds 10%, becoming one of the major shareholders. According to the prospectus, as a technology-based one-stop platform, Easy Health Group focuses on providing comprehensive health services and health insurance solutions, dedicated to promoting the effective allocation of health services and related financial resources through technological tools. According to the Sandhill Research Report, Easy Health Group ranked second in the Chinese digital integrated health services and health insurance services market in terms of active users in 2023; and ranked fourth in the Chinese independent health services market in terms of revenue in the nine months ended September 30, 2024. The report also showed that the Chinese digital health service platform (in terms of revenue) increased from RMB36.5 billion in 2019 to RMB172.7 billion in 2023, with a compound annual growth rate of 47.5%, and is expected to reach RMB825.6 billion in 2028, with a compound growth rate of 36.7%. Easy Health Group provides users with diversified and personalized health services through its all-round ecosystem, including early screening, health check, medical appointment services and health product sales. Meanwhile, the Company also provides users with convenient health insurance products through its internet insurance platform - Easy Insurance. As of September 30, 2024, Easy Insurance has cooperated with 36 insurance companies and offers a total of 252 insurance products. The prospectus shows that Easy Health Group's revenue has maintained a rapid growth trend. Its revenue was approximately RMB394 million in 2022 and RMB490 million in 2023. In the first three quarters of 2024, Easy Health Group's revenue was approximately RMB643 million (RMB310 million in the same period of 2023), exceeding the full-year scale of 2023. Its adjusted net profit was RMB149.2 million, RMB146.6 million, RMB132.8 million and RMB76.6 million in 2022, 2023 and the nine months ended September 30, 2023 and 2024, respectively, achieving profitability during the reporting period. Before this IPO, Easy Health Group received multiple rounds of financing, with investors including Sun Life Insurance, IDG, DeTong Global (DeTong Capital), Tencent and others. According to the prospectus, Easy Health Group completed a total of approximately US$126 million in financing from 2015 to 2021. Among them, the holding ratios of Sun Life Insurance and IDG are both over 10%.