Select Language:
On October 15, a prominent Chinese medical device manufacturer announced plans for a secondary listing in Hong Kong to bolster its global operations and mitigate the effects of sluggish domestic performance.
The company aims to issue new shares and list on the Main Board of the Hong Kong Stock Exchange as part of its international growth strategy, seeking to establish a broader global capital platform and strengthen its financial position, according to a statement released yesterday.
This development aligns with earlier market speculation. Reports in July indicated that the company was considering a Hong Kong secondary listing to raise a minimum of USD 1 billion.
Founded in 1991, the firm is a leading provider of medical devices, offering products in areas such as in vitro diagnostics, medical imaging, patient monitoring, and life support systems. Facing decreased demand for equipment tenders from public hospitals and intense market competition, the company has experienced profit declines for four consecutive quarters since the third quarter of the previous year.
During the first half of this year, the company’s net profit dropped 33 percent year-over-year to CNY 5.1 billion (USD 716 million), while revenue declined 18 percent to CNY 16.7 billion (USD 2.3 billion).
In response to challenges within the domestic market, the company has accelerated its international expansion efforts. Overseas revenue reached CNY 8.3 billion in the first half, nearly half of total revenue, representing an approximate 11 percentage point increase from the previous year.
As medical equipment tenders in China begin to recover, the company expects its revenue growth to resume in the third quarter. Additionally, it anticipates faster growth abroad, especially in developing economies, as outlined in its investor relations report released yesterday.
The stock closed slightly lower today at CNY 230.5 (USD 32.40), reflecting a decline of over 50 percent from its peak in July 2021.
ChatGPT
Perplexity
Gemini AI
Grok AI
