Zhuozheng Healthcare (2677.HK) successfully listed on the Hong Kong Stock Exchange! Futu acted as the underwriter to support the company's IPO

February 6th,$DISTINCT HEALTH (02677.HK)$ The successful listing on the Main Board of the Hong Kong Stock Exchange marks the official entry of this emerging Chinese health services consumer brand into the Hong Kong stock market, ushering in a new chapter of development.

During this IPO process, Futu, with its professional investment banking capabilities and integrated multi-channel resource advantages, was invited to act as theJoint Global Coordinator (JGC), deeply participating in the entire project operation. Meanwhile, Futu leveraged its comprehensive corporate service ecosystem to provide full support to TrueMed Healthcare, helping the company build efficient communication bridges with all participants in the Hong Kong capital market, accurately conveying the core value of the company.

TrueMed Healthcare's listing in Hong Kong has been highly recognized by the market, with an impressive lineup of cornerstone investors including KingMed Diagnostics, XPeng Motors Chairman He Xiaopeng, as well as Tencent-backed tech companies such as Minglue Technology, Weimob Group, Kuro Games, and Shouhui Group. Among them, Tencent, as the largest institutional shareholder, holds nearly 20% of the shares.

According to the announcement, TrueMed Healthcare is the third-largest private mid-to-high-end comprehensive medical service provider in China, with a market share of 2.0% in 2024. The company has long focused on the mid-to-high-end medical services market, targeting affluent individuals with strong purchasing power and a preference for personalized medical experiences. Mid-to-high-end medical services refer to comprehensive customized services that emphasize patient experience and service quality, primarily divided into public and private mid-to-high-end medical services.

Data from Frost & Sullivan shows that the market size of China’s private mid-to-high-end medical services has grown rapidly, with total revenue increasing from 193 billion yuan in 2020 to 426.3 billion yuan in 2024, at a compound annual growth rate (CAGR) of 21.9%. It is expected to maintain a CAGR of 14.3% from 2024 to 2029, reaching over 831.4 billion yuan by 2029. In terms of market positioning, based on 2024 revenue, TrueMed Healthcare ranks third nationwide in the private mid-to-high-end medical services segment, with a 2% market share; in the overall mid-to-high-end medical services market, its share was approximately 0.1% in 2024.

Financial data from the prospectus reveals that TrueMed Healthcare has shown strong revenue growth in recent years: revenues for 2022, 2023, and 2024 were 470 million yuan, 690 million yuan, and 960 million yuan respectively, representing a CAGR of 42.2%; gross profit also increased rapidly, reaching 43.98 million yuan, 130 million yuan, and 230 million yuan over the past three years, with a CAGR of 126.7%. In terms of profitability, the company successfully turned profitable in 2024, with adjusted net profits over the last three years being -123 million yuan, -43.57 million yuan, and 10.7 million yuan respectively. For the first eight months of 2025, the adjusted net profit reached 10.45 million yuan, reflecting continued improvement in profitability stability.

Unlike most medical institutions that rely on national medical insurance payments, TrueMed Healthcare's revenue structure exhibits significant differentiation. According to the prospectus, the proportion of the company's revenue derived from national medical insurance was only 0.2%, 0.2%, and 1.2% of total revenue in 2022, 2023, and 2024 respectively. This characteristic minimizes the impact of medical insurance cost controls on TrueMed Healthcare.

Regarding the use of proceeds, TrueMed Healthcare plans to allocate the net proceeds from this IPO as follows:

35% will be allocated to the research, development, and application of medical artificial intelligence technology. This includes building a professional talent pool, engaging in strategic cooperation with leading research institutions and enterprises, external procurement, as well as upgrading existing systems through internal IT and data technology departments to deploy AI innovations in medical services and improve operational efficiency.

30% will be used for the upgrade and expansion of medical service institutions, with 20% dedicated to relocating an existing facility in Shenzhen and 10% for establishing new facilities in Hangzhou and Shanghai.

25% will be utilized for strategic acquisitions, targeting high-performing medical service providers in first-tier and emerging first-tier cities at opportune moments.

10% will serve as working capital and for other general corporate purposes.

As a leading digital fintech company, Futu, with an investor ecosystem of over 27 million and a comprehensive enterprise service system, is capable of providing companies with end-to-end services throughout the pre-, mid-, and post-IPO process, including one-stop ESOP stock option management solutions, Hong Kong and US IPO distribution*, investor relations (IR) and PR, financial public relations services, international placement*, secondary trading services*, and other core services.

As of Q3 2025, six out of the top ten companies in terms of Hong Kong IPO fundraising have collaborated with Futu. Nearly half of the Hong Kong IPO projects in Q3 involved cooperation with Futu. In Q3, on the Futubull platform, 12 new stocks had subscription amounts exceeding 100 billion Hong Kong dollars. Futu’s capability in US IPOs has been highly regarded, with popular new stocks like Bullish, Figure, and Gemini achieving full allocation for all subscribing US clients.

As of Q3 2025, Futu's corporate service clientele reached 1,112 companies, providing IPO distribution and IR services to 561 enterprises. It has successfully assisted 358 companies such as Meituan, Kuaishou, Xiaomi, Baidu, KE Holdings, JD Health, and Bilibili in going public in Hong Kong and the US. A total of 804 ESOP clients have signed up cumulatively, and 1,300 listed companies are now hosted on the Futu platform.

In the future, Futu will fully leverage its resources and market influence to provide more professional and efficient services to a wider range of clients!

*Securities-related businesses such as IPO distribution are provided by licensed subsidiaries under Futu.

*Data source: Market value calculated based on the first day of listing.

*Data source: Futu's Q3 2025 earnings report.

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