Domestic pet ownership has been rising year after year, and pet medical care is the second largest market after pet supplies

A true story: a pet owner in Shanghai spent 150,000 yuan on treatment "unconsciously" because an English shorthair cat that accompanied her for 10 years was sold for no reason half a year ago, and in the process of running through large and small pet hospitals and constantly "seeking medical treatment"
.

An incomplete statistic: In some of China's megacities, 100,000 pets are sent to funeral homes
each year.

While lamenting the spending power of the shovelers, opportunities in the pet industry are gushing out
.

In 2021, considered by some people in the industry to be the first year of pet medical treatment, Shengxiang, Wanfu, Danahe and other domestic and foreign head medical companies are all vigorously involved in this track
.

1.

The continuous increase in domestic pet ownership has brought a large number of service needs, and pet medical care is the second largest market
after pet supplies.

If a pet gets sick, most pet owners choose to go to a pet hospital
.

In 2014, the number of pet hospitals in China was only 13,100, in 2018 the number has reached 26,500, and in 2021 the number exceeded 30,000
.

Such a rapid growth trend, in addition to the explosion of demand, but also the boost
of capital.
One of the most notable participants is Hillhouse, which holds more than 100 stakes in pet-related companies
.

In 2018, under the impetus of all parties, 450 pet hospitals under Ruipeng Co.
, Ltd.
merged with 700 pet hospitals under the brands of Barbietang, An An Pet Doctor and Pet Yisheng invested by Hillhouse Capital, becoming the largest chain hospital chain in
China.
By the end of 2021, there will be more than 1,600 pet hospitals under New Ruipeng, and it plans to establish 5,000 smart hospitals
in the next five years.

Another strong contender for pet hospital chains is Goldman Sachs' Ruipai Medical, which has more than 300 stores by the end of 2020, of which 75% are located in first- and second-tier cities
.

Both have recently reported plans
for listing.

Although the development of pet medical service institutions is booming, it can be clearly felt that the market share of the top few major enterprises in the head is not high, and the service capacity of most domestic pet medical service institutions is uneven
.

For a long time, noon diagnosis and treatment have been based on empirical diagnosis, coupled with the inability of pets to speak, resulting in a
high misdiagnosis rate.
At present, with the assistance of medical equipment, it is undoubtedly possible to accurately diagnose pets and enhance the service capabilities and reputation of pet hospitals and clinics
.

Therefore, there is also a consensus in the industry: the advanced degree of pet hospital equipment often directly determines the turnover
.

At present, there are more than 20,000 domestic animal hospitals, one-third of which are equipped with DR, while CT and MR are still relatively low
.

Taking pet DR (digital X-ray examination equipment) as an example, for pet hospitals, the impact of DR on the treatment effect is very obvious
.
In the past two years, the presence or absence of DR equipment has almost become a watershed
in the competition of pet hospitals.

2.
Unknown domestic manufacturers occupy more than 40% of the domestic pet imaging market

Kuanteng Medical is committed to building a leading comprehensive medical imaging enterprise in China, covering CT, DR, MR, C ARM (MIDDLE C, small C) and other complete medical imaging equipment product line, and to achieve the whole product line and equipment core components (high voltage system, spectrometer, gradient system, detector, etc.
) of self-research and production
.

Up to now, Kuanteng Medical has completed 6 rounds of financing
.
In August 2020, the valuation of Kuanteng Medical acquired from the industrial acquisition fund of Juhua Technology was estimated to be about 442 million yuan
.

Recently, there have been reports that Kuanteng Medical meets the listing standards of the Science and Technology Innovation Board, the ChiNext Board and the Hong Kong Stock Exchange, and recently it has been reported that the company is receiving IPO counseling, and it is expected to impact the IPO
in the next two years.

Dipper Medical's Di Bao Cheng is a leader in animal imaging medical equipment
.

Founded in 2018, the operating income of Tianbaocheng reached 100 million yuan in 2019, and in the first half of 2020, it achieved revenue
of 70 million yuan.

Adopting completely independent research and development, it will achieve 919 DR shipments in 2021, far exceeding the second place with a market share of 49.
5% (13% market share of the second place).

In addition to DR (digital X-ray photography), there are CT (electrocomputed tomography) and MR (magnetic resonance imaging) products, but they have not yet entered the ultrasound track
.
In addition to the sales of animal equipment, there are pet radiotherapy centers, pet hemodialysis centers, pet interventional surgery centers, pet imaging centers, etc.
, which have completed the integration of hardware + software + service in China, with high brand effect and first-mover advantage
.

(According to the standards of a pet hospital: DR examination charges 300-400 yuan / time, CT / MR test fee of 1500-2700 yuan / time
.
) ）

As of August 2020, there are more than 3,000 pet hospitals and more than 1,500 imaging equipment in the world
.

3, Mindray, United Pictures two giants are grabbing the beach

The veterinary device market is different from the human market, characterized by the fact that there is no registration, and the cycle from research and development to commercialization is very short
.
And most of the products used by people can be transformed into veterinary products with a slight modification, which has certain advantages
for medical equipment companies with a strong product line foundation.

So why in the field of animal DR mentioned above, traditional human medical equipment manufacturers have not done professional animal medical equipment manufacturers? The core reasons are: 1) Restricted by the development of the early pet medical industry, the market scale gap is large compared with human medical equipment, and related businesses are not valued; 2) Professional animal medical equipment manufacturers have higher concentration, better performance and more complete
product types.

Although Mindray Medical has sporadically launched some animal medical equipment products in 2013-2019, it has not received market attention
.
In October 2020, Mindray Medical invested 200 million yuan to establish Shenzhen Mindray Animal Medical Technology Co.
, Ltd.
, announcing its full commitment to pet medical care
.

Mindray animal medical products can cover more than 90% of the equipment needs of pet hospitals, and are divided into three major sections
: life information and support equipment, imaging diagnostic equipment, and laboratory equipment (IVD).
Among them, it is worth mentioning that the Vetus series ultrasound system and the respiratory anesthesia machine Veta series, the former based on product performance and simple operation embodiment, can meet the animal heart, abdomen, reproduction, muscle and bone aspects of a number of examinations, the domestic pet ultrasound market share of more than 50%; The latter can achieve one-click intelligent ventilation according to the weight of the animal, and achieve a rapid increase in sales of 300%
year-on-year in 2021.

In 2019, the company's global veterinary revenue exceeded 200 million yuan, most of the revenue came from abroad, and only a small part of the domestic one, and the company's management expected to achieve 200 million US dollars in revenue
in 2024.

In last week's exchange, Mindray's management mentioned that the company's current four main product lines are anesthesia machines, ultrasound, blood cells, monitors, etc.
, and the existing product market only accounts for 20% of the entire pet equipment market size, which is confident in
the company's future growth after improving the product line.

Soon to register and release the "domestic high-end imaging equipment brother" joint photo medical, also has a deep layout
in animal medicine.

At present, Lianying Medical has launched two products
: uMR9.
4T, the first preclinical ultra-high field magnetic resonance imaging system uMR9.
4T and the first domestic preclinical large animal full-body PET/CT imaging system, uBioEXPLORER.

Among them, uMR9.
4T can achieve magnetic resonance imaging of small animals such as mice, rabbits and monkeys.
The large animal whole body PET/CT imaging system can realize sub-second dynamic imaging of the whole body of large animals, which can be applied to oncology, cardiovascular system disease research and development, nervous system disease research and development, new drug research and development and other fields
.

United Pictures Medical classifies the above two devices into the life science instruments sector
.

According to the prospectus, Lianying Medical's current life science instruments include CT, PET and other high-end products
.
Domestic pet hospitals are different from public hospitals, without the support of state funds, the purchase of equipment will pay more attention to cost-effective, the future breakthrough of domestic high-end animal medical equipment, will drive the amount of
domestic enterprise products.

Conclusion: Whether there is a chance at this track, everyone's body is already very honest
.