The Hong Kong Stock Exchange (HKEX) recently disclosed that Lianchi Hospital's application for a Main Board listing, initially submitted on January 13, 2026, has been automatically invalidated after failing to complete a hearing within six months. This private medical institution, focused on obstetrics and gynecology, has been listed on the New Third Board since 2015. However, its attempts to list on the Selective Layer, the ChiNext board, the Beijing Stock Exchange, and the Hong Kong Stock Exchange have all been unsuccessful. Behind these repeated failures are three major issues: a liquidity crisis, operational risks in medical care, and deficiencies in information disclosure.
A key reason for the Hong Kong IPO was to replenish working capital and repay debts from acquisitions and construction. With the equity financing channel temporarily closed, the company must rely on operating cash flow or new loans to manage its debt, leading to rising interest expenses that could erode profits. Should industry demand fluctuate or medical insurance payments slow down, the company's cash flow could face significant pressure.
In the area of medical risk, the company's prospectus revealed cumulative compensation payments of RMB 3.3 million for medical disputes during the reporting period. At the time of filing, there was still one unresolved lawsuit involving a patient's death, with claims exceeding RMB 100,000. Obstetrics and gynecology care is closely tied to the safety of mothers and newborns. Ongoing disputes and unresolved litigation not only increase non-operating expenses but also damage brand reputation. A serious medical incident could directly impact operations and the company's market valuation.
Deficiencies in information disclosure and data compliance have been key factors in prolonging the review period and causing the IPO process to become invalid. The company's prospectus only vaguely listed four major fundraising directions: hospital upgrades, mergers and acquisitions, R&D, and working capital replenishment, without disclosing the specific amount and proportion for each project. This prompted regulatory scrutiny. In May 2026, the China Securities Regulatory Commission issued a supplementary materials request, requiring further detail on the use of funds. It also demanded a supplementary explanation of Lianchi Hospital's patient personal information protection and data security management mechanisms, as well as an investigation into whether there had been any leakage of user privacy to third parties.
The company's listing strategy has lacked a stable plan, creating additional uncertainty. Founded in 2007, it was listed on the New Third Board and entered the innovation layer in 2015. It started preparations for the Selective Layer in 2020 but terminated them in April of the following year. In November of the same year, it switched to ChiNext board guidance, only to change its target to the Beijing Stock Exchange six months later. It abandoned the Beijing Stock Exchange plan in 2023 and rushed to prepare for a Hong Kong IPO in January 2026. Over six years, the company has changed its listing venue five times, repeatedly terminated guidance, and switched sponsors, incurring significant intermediary costs and signaling a lack of strategic direction to the market.
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