New Stock News | Tianxing Medical Applies Again to the Hong Kong Stock Exchange to Become China's Fourth Largest Sports Medicine Equipment Provider

According to the disclosure by the Hong Kong Stock Exchange on March 3rd, Beijing Tianxing Medical Technology Co., Ltd. (referred to as Tianxing Medical) submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CITIC SEC and CCB International as its joint sponsors. This is the company's second submission to the Hong Kong Stock Exchange. Company Overview According to the prospectus, the company is a China-based medical device company that focuses on clinical solutions in sports medicine. Based on data from Frost & Sullivan, by sales revenue forecast for 2024, the company is the fourth largest sports medicine equipment provider in China, with a market share of approximately 6.5% in the Chinese sports medicine implants and devices market, and is also the largest domestic sports medicine equipment provider. Leveraging its independently developed implants, active devices, related consumables, and surgical instruments, the company provides comprehensive solutions for the treatment of soft tissue injuries such as shoulder, knee, hip, foot/ankle, elbow, and hand/wrist injuries, as well as sports rehabilitation and prevention. The sports medicine equipment industry in China is still in its early stages of development, with significant room for growth compared to developed countries. According to data from Frost & Sullivan, the Chinese sports medicine equipment market is expected to grow at a compound annual growth rate of 16.5% from 2024 to 2030. At the same time, domestic sports medicine equipment providers are expected to increase their market penetration in the Chinese sports medicine market. Additionally, the Chinese smart rehabilitation solution market is expected to achieve a compound annual growth rate of 47.5% and reach approximately RMB 22.9 billion by 2030. The company has developed a sports prescription rehabilitation system to tap into this growth area and has successfully expanded into the Chinese smart rehabilitation solution market. As of the latest feasible date (February 26, 2026), the company's sports medicine product portfolio mainly includes 62 products, covering implants, active devices, related medical consumables and surgical tools, as well as regenerative repair products, and providing clinical sports medicine solutions. With its technological capabilities, the company has had over seven products approved for medical device certification on average per year during the historical period. During the historical period, leveraging a diversified product portfolio, the company achieved deep penetration in the Chinese market: as of December 31, 2022, the company's products were available in over 1,000 hospitals, increasing to over 3,000 by December 31, 2024, with over 1,000 being tertiary hospitals. By September 30, 2025, the cumulative product sales volume had exceeded 1.8 million units. The company's product portfolio covers key aspects of the sports medicine cycle. Based on sales revenue for 2024, the company's market share is approximately 6.5% in the Chinese sports medicine implants and devices market. As of the latest feasible date, the company's product portfolio includes 62 products covering implants, surgical equipment and related consumables and surgical tools, as well as regenerative repair products. According to data from Frost & Sullivan, as of the same date, the company has obtained third-class medical device certification for 27 products and second-class medical device certification for 24 products, making it the company with the most certifications in the Chinese sports medicine industry. Additionally, as of the latest feasible date, the company has obtained over 200 medical device regulatory approvals and registrations in Europe, Southeast Asia, the Middle East, and Latin America. The company competes in the Chinese sports medicine equipment market. According to data from Frost & Sullivan, the Chinese sports medicine equipment market is highly concentrated, currently dominated by international participants. In 2024, based on sales revenue, the top five sports medicine equipment providers in China accounted for approximately 59.3% of the market share, with four of them being international participants. Based on sales revenue for 2024, the company ranks fourth among all brands in the Chinese sports medicine equipment market, with a market share of approximately 6.5% in the Chinese sports medicine implants and devices market, ranking first among all domestic brands. The company's business covers major product categories, including sports medicine implants, surgical equipment and related consumables, and other sports medicine products such as joint soft tissue regenerative repair products. In the Chinese sports medicine implants market, based on sales revenue, the company ranked first among domestic brands in 2024, and fourth among all brands, with a market share of approximately 8.8%. In the Chinese surgical equipment and related consumables market, based on sales revenue, the company ranked first among domestic brands in 2024, and sixth among all brands, with a market share of approximately 3.2%. Financial Information Revenue For the nine months ending September 30 of 2022, 2023, 2024, and 2025, the company's revenue was approximately RMB 147 million, RMB 239 million, RMB 327 million, and RMB 273 million, respectively. Profit For the nine months ending September 30 of 2022, 2023, 2024, and 2025, the company's profits were RMB 40.34 million, RMB 57.12 million, RMB 95.38 million, and RMB 89.87 million, respectively. Gross Margin For the nine months ending September 30 of 2022, 2023, 2024, and 2025, the company's gross margins were 70.9%, 74.3%, 69.6%, and 73.8%, respectively. Industry Overview The Chinese medical device market has experienced steady growth, with the market size increasing from RMB 562.9 billion in 2018 to RMB 1,050.2 billion in 2024, with a compound annual growth rate of 11.0%. It is further expected to reach RMB 1,726.7 billion by 2030, with a compound annual growth rate of 8.6%. In 2023, the Chinese medical device market experienced a temporary decline, mainly due to a decrease in sales of medical devices related to COVID and the implementation of medical anti-corruption actions. Factors such as an aging population, rising incidence of chronic diseases, increased healthcare awareness among patients, encouraging policies for domestic medical devices, technological innovation, the volume-based procurement program, and the continued implementation of other national health insurance plans are expected to drive the growth of the Chinese medical device market in the coming years. The global sports medicine implants and devices market has entered a mature stage. The market size increased from USD 5 billion in 2018 to USD 6.1 billion in 2024, and is expected to reach USD 8.8 billion by 2030, with a compound annual growth rate of 6.2%. The market experienced a temporary decline in 2020, primarily due to large-scale lockdown measures during COVID-19, leading to the postponement or cancellation of many elective surgeries, particularly in the field of sports medicine such as arthroscopic surgery, ligament reconstruction, and meniscus repair. The market size of the Chinese sports medicine implants and devices market increased from RMB 3.7 billion in 2018 to RMB 5.4 billion in 2024, with a compound annual growth rate of 6.5%, and is expected to reach RMB 12.1 billion by 2030, with a compound annual growth rate of 14.3%. Board of Directors Information The company's board of directors consists of eleven directors, including two executive directors, five non-executive directors, and four independent non-executive directors. Directors serve a term of three years, and may be re-elected for consecutive terms upon expiry. Shareholding Structure As of the latest feasible date, Mr. Dong, Tianjin Jikang, Tianjin Puhe, and Tianjin Yunkang directly own interests in the company's issued share capital of 33.14%, 1.88%, 2.36%, and 4.09%, respectively. The general partners of Tianjin Jikang, Tianjin Puhe, and Tianjin Yunkang are all Tianjin Bo Kang, of which Mr. Dong holds a 99% interest. Therefore, as of the latest feasible date, Mr. Dong, Tianjin Bo Kang, Tianjin Jikang, Tianjin Puhe, and Tianjin Yunkang collectively control approximately 41.47% of the company's issued share capital's voting rights. Intermediary Team Joint Sponsors: CITIC SEC (Hong Kong) Limited, CCB International Financial Limited; Legal Advisors: Gallant Y.T. Ho & Co., Beijing Zhong Lun Law Firm; Joint Sponsors and Compiling Legal Advisors: Orbis Law Office, Beijing Tianyuan Law Firm; Auditors and Reporting Accountants: Ernst & Young; Industry Consultant: Frost & Sullivan Industry Consulting Co., Ltd.