Aivei: Challenges and Opportunities in China's Assisted Reproductive Industry

Aivi Healthcare, a private assisted reproductive technology (ART) hospital in China, has recently made another attempt to list on the Hong Kong Stock Exchange, reflecting the severe challenges in China's fertility landscape. In 2022, China experienced its first population decline in 60 years, with the number of newborns dropping from 15.2 million in 2018 to 9 million in 2023, and the birth rate falling from 1.1% to 0.6%. Social pressures have led to a decline in young people's willingness to have children, prompting the government to introduce a three-child policy and accelerate the inclusion of ART in medical insurance to encourage childbirth.

Ren Jizhong, the founder of Aivi Healthcare, is a 1960s-born accountant who transitioned into the ART field. In 2006, he left his position as general manager of an audio company to enter the ART industry. Under the guidance of Professor Zhang Lizhu, he opened the first hospital, Zhanjiang Jiuhe Hospital, in 2009. Despite facing challenges such as funding shortages and a lack of talent, the company has grown to become the fourth-largest ART service provider in China, having helped deliver 36,000 IVF babies.

The company's finances are robust, with revenues from 2021 to the first half of 2024 being 4.2 billion yuan, 4.07 billion yuan, 4.94 billion yuan, and 2.51 billion yuan respectively, with a gross profit margin consistently above 40%. Zhanjiang Jiuhe Hospital contributes nearly half of the revenue, but Jieyang Aivi Healthcare Hospital has the highest success rate, over 65%, mainly due to the traditional early marriage and childbearing culture in eastern Guangdong.

Aivi Healthcare faces the challenge of increasing numbers of infertile couples, rising from 55.4 million pairs in 2018 to 58 million pairs in 2023, with an expected increase to 67.4 million pairs by 2030. The company has not yet obtained a PGT (Preimplantation Genetic Testing) license and plans to use the funds raised from the IPO to enhance its technological capabilities.

Aivi Healthcare's story is one of perseverance and cross-industry innovation, and it is a true reflection of China's current fertility situation. At the intersection of policy encouragement and market demand, it stands at the forefront of the风口浪尖.