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Yingtai Medical (01501.HK), a leading domestic interventional device, announced that on April 7, 2024, the company submitted the application materials for listing guidance and filing to the Shanghai Regulatory Bureau of the China Securities Regulatory Commission.
Due to the needs of business development, the company intends to prepare for listing on the stock exchange in China, and the recommended A-share listing guidance agency is China International Capital Corporation Limited. The proposed A-share listing is still in the early planning stage. As of April 7, the Company has not submitted any formal listing application to any relevant regulatory authorities in China.
Founded in 2006, KDL Medical is a leading manufacturer of cardiac interventional devices in China, with its main product layout covering cardiac intervention, non-vascular intervention and orthopedic intervention. According to the data of 2020, it ranks first in the domestic production of PCI supported devices, and is one of the few medical device manufacturers in China with complete industrial capabilities such as independent mold development, product research and development, equipment development, and independent sterilization, and is one of the largest exporters of interventional medical devices in China.
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1. 2亿募资没用完,为何二度IPO
After announcing its switch to A-shares on April 7, Yingtai Medical did not fluctuate much in Hong Kong stocks, falling slightly, down 0.54%. At present, the total market value of Yingtai Medical is 4.840 billion, and the stock price is 27.5 Hong Kong dollars.
Yingtai Medical focuses on interventional medical devices, and its performance has grown steadily in the past three years. From 2021 to 2023, the revenue will be 466 million yuan, 586 million yuan and 754 million yuan respectively, and the net profit in the same period will be 143 million yuan, 132 million yuan and 156 million yuan respectively.
When it landed on the Hong Kong stock market in 2019, Yingtai Medical was a member of KDL (603987. SH), and the company name is "Shanghai KDL Medical Devices Co., Ltd.", at that time, the A-share company "dismantled" the outbound listing was not restricted.
On May 18, 2022, Shanghai KDL Enterprise Development Group Co., Ltd. issued an indicative announcement that Shanghai KDL Medical Device Co., Ltd. will no longer be included in the company's consolidated financial statements and constitute a major asset restructuring.
According to the announcement, KDL Group will no longer hold a controlling stake in KDL Medical Equipment after the reorganization, and KDL Medical Equipment plans to change its name to "Shanghai KDL Yingtai Medical Device Co., Ltd.", which is mainly engaged in the research and development, production and sales of interventional medical devices.
Subsequently, Yingtai Medical also lifted its control relationship with KDL through the re-election of the board of directors. The term of office of the second board of directors and the board of supervisors of KDL Medical Devices expired on December 7, 2021. On March 18, 2022, KDL Medical held a meeting of the Board of Directors to recommend the re-election of Dr. Liang Dongke and the appointment of Mr. Lin Sen as Executive Director, the re-election of Mr. Zhang Weixin and Ms. Chen Hongqin and the appointment of Dr. Song Yuan and Mr. Wang Ruiqin as non-executive Directors, as well as the re-election of Mr. Jian Xigao and Mr. Xu Hongqun and the appointment of Mr. Xu Congli as an independent non-executive Director as a member of the third term of the Board. KDL has less than half of the seats on KDL Medical Devices' board of directors and can no longer control the board's decision-making. Pursuant to Rule 1.01 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, the Company ceased to be the controlling shareholder of KDL Medical Devices. This change seems to have become the foreshadowing of its "return to A".
According to the data calculation at that time, after excluding the shareholding of Yingtai Medical, the cumulative net profit deducted from the non-attributable parent from 2019 to 2021 was 454 million yuan, which actually did not meet the requirements of the new policy on the spin-off of the parent company with a cumulative net profit attributable to the parent company of not less than 600 million yuan in three years. However, if calculated according to the financial data from 2021 to the first three quarters of 2023, KDL's performance has also reached the standard, and Yingtai Medical should not be affected by the new spin-off policy.
However, 226 million yuan of the funds raised at the time of the IPO of Yingtai Medical Hong Kong stocks remained unused, accounting for 28.32% of the net funds raised in the IPO, and it is planned to be used to build a R&D center and other production facilities in Jiading District, Shanghai. This is the necessity of raising funds for its A-share IPO is questionable.
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A leading intervention enterprise in China
According to public information, Yingtai Medical was established in 2006 and has been deeply engaged in the field of interventional medical device segmentation, and is now one of the leading interventional device manufacturers in China. The main products are cardiac intervention, orthopedic intervention and peripheral intervention.
Significant changes in the company
On December 25, 2023, KDL Medical Equipment issued an announcement that according to the company's strategic planning and business development needs, with the approval of the Shanghai Municipal Administration for Market Regulation, the company's Chinese name will be changed from "Shanghai Kindly Medical Instruments Co., Ltd." to "Shanghai Kindly Medical Instruments Co., Ltd." with immediate effect. Changed to "Shanghai INTMedical Instruments Co.,Ltd." , the abbreviation was changed from the original "KDL Medical Equipment" to "Yingtai Medical".
After the name change, the business entity and legal relationship of the company remain unchanged, and the contracts, agreements, declarations and other legal documents signed in the name of the original company will continue to take effect during their validity period, and the original business relationship and service commitments will remain unchanged.
According to the announcement, the Yingtai medical logo consists of three parts, namely the company's trademark "INT" and the Chinese and English abbreviations. Compared with the old logo, the company's Chinese abbreviation has been changed, from "KDL Medical Equipment" to "Yingtai Medical".
The INT logo is taken from the English words Intervention and International; INT is similar to the Chinese "heart", which means "to do things with heart and to treat people with heart".
A leading enterprise of domestic interventional devices
The Company ranked 7th in the market share of PCI surgical support devices in the Mainland, ranked 1st among domestic brands with a market share of 3.1%, and ranked 10th in the Mainland coronary intervention device market and 2nd among domestic brands with a market share of 1.8%. It is one of the few medical device manufacturers in China with complete industrial capabilities such as independent mold development, product research and development, equipment development, and independent sterilization, and is one of the largest interventional medical device export enterprises in China.
Thanks to the company's continuous R&D investment, as of June 30, 2023, Yingtai Medical has 64 domestic registered products, 36 CE certified products, 18 FDA certified products, 292 authorized patents, 213 patents pending approval, and 5 software copyrights.
The company also has a number of world-firsts, including the world's first transcatheter aortic valve replacement (TAVR) balloon dilation valve with positioning device. On November 17, 2023, the team of Academician Ge Junbo and Professor Zhou Daxin from Zhongshan Hospital Affiliated to Fudan University successfully completed the last confirmatory clinical trial enrollment surgery for the world's first transcatheter aortic valve replacement (TAVR) balloon dilatation valve with positioning device. This also marks the successful completion of the full surgical enrollment of the Hanchor Valve Transcatheter Aortic Valve System.
With the aging of the population, the incidence and number of aortic regurgitation are increasing, which seriously endangers the health of patients. The Hanchor Valve Transcatheter Aortic Valve System, developed by Hanling Medical, a subsidiary of Yingtai Medical, is the world's first balloon dilation valve with positioning device specifically for aortic regurgitation, and its precise autonomous positioning technology is in the leading position in the application of TAVR system.
As the world's first valve product for simple aortic regurgitation with a bulbous transfemoral approach, the Hanchor Valve Transcatheter Aortic Valve System has good bending performance to easily cross the arch and maintain coaxial, and the positioning key can easily locate the sinus floor. The unique and innovative design of the product clamps the autologous valve leaflets to fully prevent valve displacement and paravalvular leakage. In the field of simple regurgitation treatment of aortic valve, Hanchor Valve is a major breakthrough in domestic medical devices and will have broad application prospects. This also shows Yingtai Medical's leading position in interventional devices.
Considering the fierce competition in the A-share market, dozens of medical device companies have recently stopped IPOs, will Yingtai Medical be able to successfully log in to the A-share market?