Restricted Shares Will be Lifted on 22 September, and the Management and Investors of Arrail Group are "Hoarding", Release High Growth Signals
2022年9月22日 - 10:20AM
JCN Newswire
The restricted shares of Arrail Group Limited ("Arrail Group" or
the "Company", stock code: 06639.HK), a leading dental services
group in China, will be officially lifted and listed for
circulation on 22 September 2022. In this regard, the Company's
management and investors clearly presented the idea of being
"hoarding" and their current confidence.
Arrail Group is a leading dental services group and have
established a nationwide footprint in China, operating both Arrail
Dental, a leading premium dental services brand, and Rytime Dental,
a middle-end dental services brand. According to Frost &
Sullivan Report, the Company is the largest dental service provider
in China's premium private dental service market and the third
largest dental service provider in China's entire private dental
service market based in terms of total revenue in 2020.
Institutional shareholders' confidence in long-term development is
demonstrated by "not to reduce its shareholding"
Based on the confidence in the industry prospect and the future
development of Arrail Group, the major investors of the Company
said that they would continue to hold shares. Meanwhile, as
disclosed in the prospectus of the Company, approximately 31.55% of
the shares held by Mr. Zou Qifang, the founder of the Company, and
his management team will remain locked for 6 months until the end
of March 2023.
It is understood that prior to the public offering, Arrail Group
has carried out several rounds of financing from January 2010 to
January 2021, with the Pre-IPO Investors including KPCB China Fund,
Qiming Venture Partners, OrbiMedAsia, Temasek, Goldman Sachs,
Hillhouse Capital, etc. During the listing period, the Company also
introduced five cornerstone investors, namely Abax, Harvest, Hudson
Bay, OrbiMedAsia OrbiMed and Modern Dental, with subscribed amount
of approximately HK$507 million of shares, accounting for
approximately 74.66% of the offering shares as per the IPO Price
with a lock-up period of 6 months. The "no reducing shareholding"
idea of the management of Arrail Group and major investors will not
only help stabilise the share price of the Company, but also
promote the long-term stable development of the Company and enhance
investors' confidence.
The scarcity and uniqueness of national chain are recognised by the
market
It is worth mentioning that few institutions can achieve the
nationwide coverage with the distinguishing regional
characteristics of the dental service market. The Company is the
only national chain dental institution listed on the market at
present. Its business is distributed in four core regions
domestically, namely North China, East China, South China and West
China, and 15 cities. The scarcity and uniqueness of Arrail Group
are gradually being recognised.
Since entering the Hong Kong Stock Connect on 5 September, both the
share price and liquidity have improved significantly. On 9
September, the trading volume reached approximately 7 million
shares, with over HK$63 million. The share price has increased by
nearly 100% since early September. The Company's business expansion
prospects and development potential are promising.
The solid fundamentals and outstanding performance also added
confidence for "not to reduce its shareholding". As disclosed in
the financial report, affected by the news and the improvement of
comprehensive strength, for the financial year ended 31 March 2022,
the total number of visits of Arrail Group reached 1.559 million,
representing a year-on-year increase of 13.7% from 1.371 million in
the financial year 2020/2021; The total revenue was RMB1.624
billion (the same below), representing a year-on-year increase of
7.16% as compared to the financial year 2020/2021; The adjusted net
profit for the year amounted to RMB66 million, up 18.0% year on
year, with strong profitability.
The next step of the Company's development is also worth the
market's expectation. In early July, Arrail Group announced a
strategic cooperation with Wuxi Tongshan. The project was completed
on 1 September. In addition, the two new hospitals and six clinics
in this financial year were also basically completed. It is
expected that 268 chairs will be added in this financial year,
representing an increase of 20% as compared to the previous
financial year. The management of the Company stated that the new
chairs will lay a solid foundation for the long-term development of
the Company in the future.
In the long run, with the implementation of the centralised
purchase policy, the market gradually returns to the rational
cognition of the health care service sector. As the only listed
national dental chain medical institution in the market, Arrail
Group is undoubtedly the first one to enjoy the market bonus. In
the future, Arrail Group will continue to improve its operational
capabilities and service quality, and enhance its core competitive
advantages. It is expected that the results and valuation of Arrail
Group will be improved, thus promoting the further development of
its dental services.
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