Jinjiang Electronics Files for STAR Market IPO with Over RMB 700 Million Raised in Series A and B Funding

On June 12, 2023, the official website of the Shanghai Stock Exchange showed that the Sci-Tech innovation board listing application of Sichuan Jinjiang Electronic Medical Device Technology Co., Ltd. (Abbreviation: Jinjiang Electronic) has been accepted. Its sponsor institution is CITIC Securities, and it plans to raise 2.691 billion yuan. (Click to download: Jinjiang Electronic Prospectus (Filing Draft))

Source of the image: STAR Market Official Website

The prospectus shows that Jinjiang Electronic is an innovative enterprise focusing on the research and development, production, and sales of high-end innovative medical devices for diagnosis and ablation in the field of cardiac electrophysiology. The quality and performance of its core products comprehensively match those of international leaders. With over two decades of deep cultivation in the cardiac electrophysiology field, the company has a profound understanding of bioelectrical signals and a strong foundation in electronic engineering, providing safe and efficient comprehensive treatment solutions for patients with rapid arrhythmia worldwide.

Jinjiang Electronic's IPO this time has chosen the fifth set of listing standards specifically designed for unprofitable pharmaceutical companies, namely: the expected market value is no less than 4 billion yuan, and its main business or products need to be approved by relevant national departments, with a large market space and have achieved phased results. Pharmaceutical industry enterprises must have at least one core product approved for Phase II clinical trials, and other enterprises that meet the positioning of the STAR Market need to have obvious technical advantages and meet corresponding conditions. Meanwhile, Jinjiang Electronic meets the specific requirements of the "Guidance No. 7 on the Application of Listing Standards for Medical Device Enterprises under the STAR Market Issuance and Listing Review Rules of the Shanghai Stock Exchange."

According to the PharmaCube InvestGo investment and financing database, Jinjiang Electronic has completed multiple rounds of financing, with its Series A and B rounds accumulating over 700 million RMB, marking the largest private market transaction in the history of China's electrophysiology industry.

The prospectus shows that Jinjiang Electronic's core product, LEAD-Mapping® Cardiac Electrophysiology 3D Mapping System, was approved in December 2022 and is currently in the early stage of commercialization. The LEAD-PFA® Cardiac Pulse Field Ablation Instrument and PulsedFA® Single-Use Cardiac Pulse Field Ablation Catheter are expected to be approved in the fourth quarter of 2023. In addition, several other products are expected to be approved for marketing in the coming years.

As of April 30, 2023, Jinjiang Electronic has obtained 13 Class III medical device product registration certificates, 4 Class II medical device product registration certificates, and CE certifications for 3 products in the European Union. In terms of products under development, Jinjiang Electronic has over 20 products in research, covering electrophysiological diagnosis and treatment equipment and consumables, as well as pain treatment equipment and consumables.

Financially, from 2020 to 2022, Jinjiang Electronic's operating revenue reached 41.339 million yuan, 60.6159 million yuan, and 59.159 million yuan respectively. The net profit attributable to the parent company’s shareholders was 24.725 million yuan, -16.5897 million yuan, and -1.0424 million yuan respectively. After deducting non-recurring gains and losses, the net profit attributable to the parent company’s shareholders was 2.0439 million yuan, -3.601 million yuan, and -3.4669 million yuan respectively. As of the end of the reporting period, Jinjiang Electronic's undistributed profit was -2.9986 million yuan.

During the reporting period, the main business revenue of Jinjiang Electronic by product category is as follows:

As of the date of this prospectus, Li Chuwén directly holds 13.0221% of Jinjiang Electronic, and Li Chuyǎ directly holds 22.0638% of Jinjiang Electronic. Together, they directly hold 35.0859% of Jinjiang Electronic and are the controlling shareholders and joint actual controllers of Jinjiang Electronic.

The prospectus shows that Li Chuwen, male, Chinese nationality, born in October 1967, has no permanent residency rights outside of China. He graduated from Beijing Medical University (now Peking University Health Science Center) with a master's degree. From September 1996 to September 1998, he worked at Chengdu Jinjiang District General Electronic Instrument Factory; from September 1998 to January 2002, he worked at Sichuan Jinjiang General Industrial Co., Ltd.; from January 2002 to the present, he has been working at Jinjiang Electronic, where he currently serves as chairman and general manager.

Li Chuya, male, Chinese nationality, born in November 1958, with no permanent residency rights outside China, graduated from Sichuan Radio and Television University (now Sichuan Open University) majoring in Electronic Engineering, with a college degree. From December 1976 to January 1978, he worked at a certain unit of the People's Liberation Army as a soldier; from January 1978 to March 1997, he worked at a research institute under the General Staff Department of the People's Liberation Army, serving successively as a soldier, assistant, and engineer; from March 1997 to August 1998, he worked at Chengdu Jinjiang District General Electronic Instrument Factory; from September 1998 to January 2002, he worked at Sichuan Jinjiang General Industry Co., Ltd.; from January 2002 to present, he has been working at Jinjiang Electronic, where he currently serves as director and deputy general manager.

Li Chuyu, male, Chinese nationality, born in June 1957, with no permanent residency rights outside of China, graduated from Sichuan Radio and Television University (now Sichuan Open University) majoring in Electronic Engineering, with a college diploma. From December 1976 to May 1978, he worked at a certain military unit as a soldier; from May 1978 to May 1979, he served at a certain military unit as a soldier; from May 1979 to June 1988, he worked at a research institute under the General Staff Department of the People's Liberation Army as an assistant engineer; from June 1988 to December 1992, he worked at the Rural Telecommunications Department of Sichuan Provincial Posts and Telecommunications Administration as a director-level official; from January 1993 to August 1998, he worked at China Telecom Chengdu Branch as the Director of the Maintenance Center; from September 1998 to February 2003, he worked at China Unicom Chengdu Branch as the Director of the Maintenance Center; from March 2003 to the present, he has been working at Jinjiang Electronic, and currently serves as the Chairman of the Supervisory Board.

Li Chusen, male, Chinese nationality, born in October 1965, with no permanent residency rights abroad, graduated from the Department of Radar, Measurement and Control Engineering, Command and Technology College of the Commission of Science, Technology and Industry for National Defense of the Chinese People's Liberation Army in 1987, with a technical secondary school education. From November 1980 to August 1985, he worked at a research institute under the General Staff of the People’s Liberation Army as a soldier; from August 1987 to February 1989, he worked at the teaching team of the Xichang Satellite Launch Center as an instructor; from March 1989 to February 1992, he worked at the Chengdu Branch of the Industrial and Commercial Bank of China as a financial manager; from March 1992 to August 1998, he worked at the Jinjiang District General Electronic Instrument Factory in Chengdu; from September 1998 to January 2002, he worked at Sichuan Jinjiang General Industrial Co., Ltd.; from January 2002 to June 2009, he worked at Jinjiang Electronic as Executive Director and General Manager; from July 2009 to March 2016, unemployed; from April 2016 to present, he has been working at Chengdu Xinjikang Technology Co., Ltd. as Chairman and General Manager.

Li Chuwu, male, Chinese nationality, born in July 1970, with no permanent residency rights outside China, graduated from the Accounting program at Chengdu University with a junior college degree. From November 1987 to April 1991, he served at a base of the PLA's Commission for Science, Technology, and Industry for National Defense; from April 1991 to August 2010, he worked at the Chengdu Branch of the People's Insurance Company of China as a business staff member; from August 2010 to July 2011, he was unemployed; from July 2011 to present, he has been working at Jinjiang Electronic, and currently serves as an advisor in the R&D Department.

The use of proceeds from Jinjiang Electronic's IPO is as follows: