As global healthcare consumption upgrades and demand for non-drug pain management solutions rapidly grows, domestic health service providers are stepping onto the capital market stage. Recently, Hong Kong-based pain management and health service provider Anew Health (AVG.US) updated its prospectus, planning to issue 1.8 million common shares at $4-6 per share and list on the NASDAQ Capital Market, expecting to raise between $7.2 million and $10.8 million. Amid the accelerating transformation wave in the global health industry, this health service provider rooted in Hong Kong with global ambitions is quietly emerging and about to take the crucial step toward IPO capitalization.
**Solid Business Foundation with Healthy Customer Quality and Revenue Structure**
Anew Health operates under the "Functional Regeneration" brand, providing pain management and health services in Hong Kong. Functional Regeneration was established in 2007 and operates four service centers in Hong Kong. Through its "ANKH" brand, leveraging over 16 years of pain relief and body strengthening experience combined with advanced East-West technologies, the company provides non-surgical, non-invasive, non-drug pain management treatments and functional enhancement therapies, along with related health product services.
According to the prospectus, Anew Health achieved total revenue of approximately $40.02 million in fiscal year 2025, with its customer base continuing to expand steadily. During the fiscal year, the company served 10,039 customers, up 15% from 8,692 in the previous year. Average annual customer spending also increased from $6,278 to $6,478, a 3.2% year-over-year growth, reflecting enhanced customer loyalty and spending capacity.
From a business structure perspective, the company's revenue primarily comes from two segments: pain management and health services (accounting for approximately 99.9%) and health product sales. Notably, the company's core business does not rely on "one-time transactions" but is built on prepaid packages and membership models, indicating strong cash flow predictability and business stability.
However, the company faced short-term pressure on profitability. Net profit declined from $11.73 million in fiscal 2024 to $5.54 million in fiscal 2025, primarily due to one-time expenses and increased administrative costs related to strategic expansion, including new service center investments, staff expansion, and one-time director bonuses, rather than fundamental deterioration in operational profitability. Excluding these factors, the company's core business remains healthy. In other words, the issue is not with the business model itself but rather the inevitable investments during the expansion phase. As new centers gradually stabilize operations, these investments are expected to convert into revenue and profit growth drivers in the future.
**Broad Industry Prospects with Clear Strategy Targeting Global Markets**
From a development trend perspective, Anew Health's non-drug pain management sector is experiencing historic development opportunities. Data shows that from 2012 to 2025, Hong Kong's non-drug pain management market consumer base grew from approximately 206,600 to an estimated 281,400, representing a compound annual growth rate of 2.4%. Simultaneously, market service value increased from HK$3.207 billion to an estimated HK$7.882 billion, achieving a compound annual growth rate of 7.2%.
Market growth stems from two factors: first, Hong Kong's and global population aging trends have increased the prevalence of pain and musculoskeletal disorders; second, consumers' growing awareness of opioid dependency risks and invasive surgery side effects has driven rapid demand for non-drug, non-invasive treatments. Anew Health is a direct beneficiary of this trend.
With 16 years of accumulation since its 2007 establishment, the company has built solid brand recognition in Hong Kong. The "ANKH" brand emphasizes "non-drug, non-surgical" treatment philosophy, combined with its proprietary "RDS+" therapy that integrates traditional Chinese meridian theory with modern energy treatment technologies including laser, electrical current, radiofrequency, and ultrasound, helping customers achieve comprehensive health improvement through "Recovery, Detoxification, and Strengthening."
This differentiated approach combining traditional and modern methods aligns with Eastern consumers' cultural identity while meeting global preferences for scientific, non-invasive treatments, forming the company's core competitive advantage.
Customer feedback demonstrates high service quality recognition. According to the company's internal customer surveys from 2023-2024, over 87% of customers expressed satisfaction with therapist services, and nearly 70% clearly experienced pain relief. High customer satisfaction not only supports stable repurchase rates but also establishes a foundation for brand value enhancement through word-of-mouth marketing.
This US listing represents not only a crucial step in financing expansion but also an important opportunity for brand internationalization and service standardization.
Looking ahead, Anew Health's strategic focus is clear: on one hand, the company will continue deepening its Hong Kong market presence by opening new centers to further cover target demographics and strengthen local market share; on the other hand, international expansion will accelerate. The company plans to establish new overseas service centers, leveraging capital from IPO financing to rapidly replicate Hong Kong's successful experience in other high-growth overseas markets.
Currently, Anew Health is at a critical stage of expansion and transformation. In the non-drug pain management sector, its unique brand, therapies, and strategic positioning position it to become the most representative listed platform in the industry. With IPO financing in place, the company is poised to accelerate expansion in Hong Kong and overseas markets, further consolidating its industry-leading position and delivering long-term growth returns to investors.