Chinese Electrophysiology Leader Jinjiang Electronics Withdraws from STAR Market IPO

Jun 06, 2024 19:16 CST Updated 19:16

Jinjiang Electronic

Developer of electrophysiology products

Instrument Family

Medical Device Media Reporting Pioneer

Share Professional Medical Device Knowledge

Source:Instrument Family,Reproduction without authorization is prohibited, and reproduction is allowed 24 hours later.

On the evening of June 5, the official website of the Shanghai Stock Exchange showed,Sichuan Jinjiang ElectronicMedical DeviceSichuan Jinjiang Electronic Science and Technology Co., Ltd. (hereinafter referred to as "Jinjiang Electronic") has terminated its STAR Market IPO.

The SSE stated,Due to Jinjiang Electronic and its sponsor withdrawing the issuance and listing application, according to "ShanghaiSecuritiesAccording to the relevant provisions of Article 63 of the "Exchange Stock Issuance and Listing Examination Rules," the issuance and listing examination has been terminated.

The prospectus shows that Jinjiang Electronic is a company specializing in high-end diagnosis and ablation in the field of cardiac electrophysiology.Innovative HealthcareA company engaged in the research, development, production, and sales of medical devices. It is one of the few companies in China with a complete line of cardiac electrophysiology products, capable of providing a comprehensive portfolio of equipment and consumables required for the entire process of cardiac electrophysiology procedures, including "mapping, modeling, ablation, and validation."

Jinjiang Electronic's Sci-Tech Innovation Board IPO was accepted on June 12, 2023, entered the inquiry phase on July 7 of the same year, disclosed the first round of inquiry response opinions on January 9 this year, and was suspended on March 31 due to the expiration of the financial data recorded in the issuance and listing application documents, which needed to be supplemented and resubmitted.

Fundraising Reduced by 700 Million Yuan

On June 12, 2023, Jinjiang Electronic's IPO was accepted by the Shanghai Stock Exchange. However, in the following half year...In China, its review process has stalled, with the first round of inquiries yet to be disclosed. The planned fundraising amount has been reduced from 26.91 billion yuan to 19.5 billion yuan, a decrease of approximately 7.41 billion yuan.

According to the previous prospectus, Jinjiang Electronic originally planned to allocate 26.91 billion yuan for three major projects: R&D and Technology Center for Medical Devices, Medical Device Production Base Project, and E-marketing Network and Marketing Capability Construction, with proposed investments of 9.58 billion yuan, 9 billion yuan, and 3.33 billion yuan respectively. The remaining 5 billion yuan would be used to supplement working capital.

Screenshot from the prospectus

In addition,The sponsor representative of Jinjiang Electronic has also changed.Previously, the sponsor representatives of the company were Hu Chaofeng and Zhao Dongtian from CITIC Securities.After updating the information, the sponsors are Zhao Dongtian and Shao Caijie.

It is understood that the fifth set of listing standards adopted by Jinjiang Electronic,This standard does not emphasize financial indicators and does not set specific requirements for revenue and net profit. Instead, it emphasizes that the core technology of the proposed listed company should align with China's medical device scientific and technological innovation strategy.Support "hard tech" medical device companies that have not yet reached a certain revenue scale to go public on the Sci-Tech Innovation Board.

However, since the second half of 2023, the number of companies adopting this standard for listing has dropped to a freezing point. Industry analysts believe that even with the adoption of the fifth set of standards, companies with continuous losses are not favored in the capital market. It should be noted that previous IPO applicants reduced their fundraising amounts based on inquiries raised by regulatory authorities. However, Jinjiang Electronic voluntarily lowered its fundraising amount before completing the first round of inquiries. Insiders think this might be related to the company's loss-making performance.

Financial data shows that from 2020 to 2022, the operating revenue of Jinjiang Electronic was 41.339 million yuan, 60.6159 million yuan, and 59.159 million yuan, respectively.Net profits were RMB 24.7252 million, -RMB 16.5897 million, and -RMB 1.0424 million, respectively;Net cash flow from operating activities was 1.8814 million yuan, -29.4652 million yuan, and -75.0258 million yuan, respectively, with the scale of cash outflow expanding year by year. It can be seen that,The company's net profit has experienced losses twice. In addition, its prospectus also states that the company cannot guarantee profitability in the short term.

Screenshot from the prospectus

Focus on Cardiac Electrophysiology

The product technology is in a leading position in the industry.

Founded in 2002, Jinjiang Electronic is a high-tech enterprise among the first group of national-level companies specializing in the R&D, production, sales, and service of high-end medical devices and consumables in the field of cardiac electrophysiology. After more than two decades of development, the company has become a leading enterprise in China's cardiac electrophysiology sector, providing safe and efficient comprehensive diagnosis and treatment solutions for patients with rapid arrhythmia worldwide.

Throughout its development history,Whether it was the collaboration with Bard in 2004 or the acquisition of CARDIMA, a Nasdaq-listed company in the United States, by Jinjiang Electronic in 2011, both had a significant impact.Through its collaboration with Bard, Jinjiang Electronic not only broke through the core technology of multi-pole discharge (one of the underlying PFA technologies) but, more importantly, achieved a leap in equipment performance. The acquisition of CARDIMA has enabled it to fully obtain international leading R&D and production capabilities for a complete set of consumables, and based on this, it has built a comprehensive electrophysiology technology platform integrating devices and consumables, achieving a comprehensive breakthrough in products offering solutions for complex arrhythmias.

In 2013,It launched the first domestically produced cardiac 3D mapping system in China, breaking the monopoly of imported products.On this basis, a new generation of LEAD-Mapping® Cardiac Electrophysiology 3D Mapping System adopting magnetoelectric fusion technology was launched in December 2022.

In November 2021, Jinjiang Electronic successfully completed the patient enrollment for the LEAD-PFA Pulsed Field Ablation System registration clinical trial.Becoming the first company in the Chinese market to complete patient enrollment for the PFA product registration clinical trial.Subsequently,The LEAD-PFA® Cardiac Pulsed Field Ablation System and PulsedFA® Single-Use Cardiac Pulsed Field Ablation Catheter have entered the special review process for innovative medical devices in China.

Taking the Lead

Leading PFA Cardiac Electrophysiology Technology

As a pioneer in China's cardiac electrophysiology industry, Jinjiang Electronic continues to innovate its technology matrix and expand its product lines, establishing seven core technology platforms: a simulation and validation technology platform, a medical electronics technology platform, a mapping and navigation technology platform, an RF ablation energy technology platform, a pulsed electric field ablation energy technology platform, a catheter technology platform, and a system integration technology platform.Possesses independent R&D capabilities for a full range of cardiac electrophysiology devices and consumables, and is expanding into the pain management field.

In the emerging PFA cardiac electrophysiology technology field, the company maintains a leading position in China in terms of the registration and application progress of PFA cardiac electrophysiology products.On December 27, 2023, Jinjiang Electronic's LEAD-PFA Cardiac Pulse Field Ablation Instrument and Pulsed FA Single-Use Cardiac Pulse Field Ablation Catheter received marketing approval from the National Medical Products Administration (NMPA).

Data shows,PFA, as a revolutionary technology, is a major disruption to existing ablation methods and also the hope for the next generation of atrial fibrillation ablation.Unlike traditional radiofrequency ablation and cryoablation, PFA has attracted significant attention from many medical device R&D companies due to its higher safety, more reliable efficacy, and shorter learning curve.

With a mature magnetic and electric fusion three-dimensional system, Jinjiang Electronic can directly connect seamlessly with the former in the development of PFA.At the same time, based on the technical foundation of the consumable product Cardima, the catheter can be made thinner and smaller, with sufficient space to install positioning sensors, giving it a first-mover advantage in the industry.

It is reported that the PFA product of Jinjiang Electronic is pulsed ablation under full magnetic positioning three-dimensional mediation, which has the following advantages:

Safer

PFA is a non-thermal ablation method that does not generate heat, causes virtually no heat-related damage, and is highly selective without harming surrounding tissues.For the X-ray exposure issue that both doctors and patients care about the most, it can also be observed clinically that, except for a small amount of exposure required during the interatrial septum puncture and other procedures, Jinjiang Electronic's PFA system can achieve nearly zero radiation. This ensures safety and efficacy while significantly reducing X-ray exposure time, benefiting both doctors and patients immensely.

At the same time,Based on the three-dimensional platform combined with pulsed ablation, it is possible to achieve modeling, mapping, ablation, and validation in one single catheter for the entire procedure.The surgical procedure is simpler and smoother, eliminating the need for multiple punctures, multiple sheaths, or repeated catheter exchanges.

More Efficient

The circular multi-electrode ablation catheter launched this time achieves ablation and isolation of the bilateral pulmonary veins.It belongs to simultaneous multi-point discharge, with each discharge only taking 0.3 milliseconds, which is shorter in time and more efficient compared to radiofrequency and cryotherapy.At the same time, under the real-time mediation of the three-dimensional mapping system, the ablation effect can be immediately revealed, and any problematic areas can be promptly subjected to supplementary ablation.

More Comfortable

The entire surgical process can optimize parameters for patient comfort. The surgery is performed under local anesthesia, with no significant pain or stimulation response, allowing the patient to complete the procedure comfortably.

More convenient

PFA is not particularly demanding in terms of contact requirements. The design of the circular catheter also aligns with the operating habits of most doctors today.To be able to perform atrial septal puncture, one can basically master the operational skills quickly, and the circular catheter does not need to use saline infusion throughout the surgery.Not only does it simplify the surgical process, but it also has advantages for patients who cannot tolerate saline.

——

According to the Frost & Sullivan report, driven by factors such as the intensification of population aging, the increase in the number of patients with arrhythmia, and the popularization of ablation surgeries as well as the upgrading of ablation surgery consumables,The market size of electrophysiology devices in China grew from 1.48 billion yuan in 2015 to 4.67 billion yuan in 2019, with a compound annual growth rate of 33.2%. The compound annual growth rate from 2019 to 2024 is projected to be 32.1%.

China's electrophysiology market reached nearly 5 billion yuan in size in 2019, maintaining a 5-year compound annual growth rate of over 30%;With the aggravation of population aging, the increase in the number of patients in the arrhythmia market, and the popularization and technological upgrading of electrophysiological surgical products, the market scale of electrophysiological surgery-related products is expected to reach nearly 20 billion yuan by 2024.

However, it should be noted that the electrophysiology market in China is currently monopolized by multinational giants such as Medtronic, Johnson & Johnson, Abbott, and Boston Scientific.Johnson & Johnson, Abbott, and Medtronic, three major giants, occupy nearly 90% of the electrophysiology market in China.

However, with the continuous improvement of technical strength and product competitiveness of China's cardiac electrophysiology enterprises, as well as the support of national policies for local brands,Chinese electrophysiology companies, represented by MicroPort EP, HT Medical, Xinsite, and Jinjiang Electronic, are beginning to rise., Device Home will continue to follow the latest developments in this field.

END

Raising One Billion in a Year, Chinese Cardiovascular Giant May Split

Leading Chinese Medical Device Manufacturer: Were the Father-Son Controlling Persons Once Investigated?

Orthopedic Market Leader Acquires Competitor

The Pioneer of Valves: Why Sell Off Key Business for 30 Billion?

Shorten R&D Cycle, Improve Product Testing Efficiency! YHJY Granted UL Witness Testing Laboratory Certification

Medical Device Giant Restructures with Major Layoffs

Instrument Family: Top 10 Cardiovascular Innovation Products in 2024

Industry Giant Acquires 52 Medical Institutions

$23.5 Billion, Medtronic's Choice

Johnson & Johnson, Major Personnel Changes

BusinessBusiness cooperation email: qxzj@landianyiliao.com