Huamai Tech Resumes Sci-Tech Innovation Board IPO Filing, Focused on Innovative Vascular Disease Therapies and Devices

Beijing Percutek Therapeutics Medical Equipment Co., Ltd. (Percutek Therapeutics) has updated and submitted relevant financial documents. In accordance with relevant regulations, the Shanghai Stock Exchange has resumed its review of the Sci-Tech Innovation Board's issuance and listing. CITIC Securities is its sponsor institution, and it plans to raise 1.293 billion yuan.

Percutek Therapeutics is a high-tech enterprise in China that focuses on the research, development, and application of innovative products and therapies in the field of vascular disease treatment. Its main business includes the research, development, production, and sales of medical device products in the fields of aorta, peripheral and coronary arteries, neurointervention, and access pathways.

For Type A aortic dissection, which requires highly complex surgical treatment, Percutek Therapeutics has innovatively designed the world's first integrated sutureless multi-branch artificial vascular stent graft system, simplifying the surgical procedure, expanding surgical accessibility, and is expected to improve patient survival rates. In the field of peripheral and coronary vascular interventional treatment, addressing the clinical challenge of CTO recanalization, the company has developed an innovative series of ultrasound catheter products, utilizing ultrasound technology to achieve a novel therapy for treating chronic total occlusion (CTO) and severe calcified lesions under the concept of "intervention without implantation."

As of the date of signing the prospectus, Percutek Therapeutics has obtained NMPA medical device product registration certificates for 8 products and EU CE certification for 2 products. The company's products have been used in more than 400 hospitals across 31 provinces, autonomous regions, and municipalities in China, including renowned tertiary hospitals such as Beijing Anzhen Hospital affiliated with Capital Medical University, Zhongshan Hospital affiliated with Fudan University, First Affiliated Hospital of Sun Yat-sen University, and the Second Affiliated Hospital of Naval Medical University (Shanghai Changzheng Hospital).

The company's products have been distributed to over 400 hospitals across 31 provinces, autonomous regions, and municipalities in China, including renowned tertiary hospitals such as Beijing Anzhen Hospital affiliated with Capital Medical University, Zhongshan Hospital affiliated with Fudan University, the First Affiliated Hospital of Sun Yat-sen University, and the Second Affiliated Hospital of Naval Medical University (Shanghai Changzheng Hospital). The company has participated in the research of the "Twelfth Five-Year Plan" National Science and Technology Support Program, undertaken major scientific and technological achievements industrialization projects under the Beijing Science and Technology Plan, as well as key advanced original technology transformation and industrialization projects in the Zhongguancun National Independent Innovation Demonstration Zone. Among these, the research, development, and application project of the abdominal aortic stent graft system was awarded the Second Prize of the 2019 Beijing Science and Technology Progress Award.

In recent years, the company has successively been rated as a national high-tech enterprise and a Zhongguan Village high-tech enterprise, a Beijing "Specialized, Refined, Unique, and Innovative" little giant enterprise, and an innovative leading enterprise in Beijing's Biomedical Industry Leapfrog Development Project (G20 Project). Driven by innovation, the company has gradually grown into a strong competitor in the international high-end brand product market within the niche field of vascular disease treatment.

Financially, in the fiscal years 2019, 2020, 2021, and the first half of 2022, the company achieved operating revenues of approximately RMB 48.94 million, RMB 50.00 million, RMB 88.83 million, and RMB 60.84 million, respectively. During the same periods, the net profits were approximately -RMB 32.81 million, -RMB 126 million, -RMB 120 million, and -RMB 27.54 million, respectively. The proportion of R&D investment to operating revenue during these periods was 55.56%, 42.33%, 42.20%, and 52.57%, respectively.

It should be noted that Percutek Therapeutics faces the risk of continuous losses. During the reporting periods, the main reasons for the company’s ongoing losses are that its products were launched relatively recently, and the marketed products have not yet achieved large-scale commercialization or formed significant economies of scale. Additionally, the company has been advancing the progress of its R&D projects, with some products currently undergoing clinical trials, resulting in substantial R&D expenditures during the reporting period. The company's future profitability largely depends on revenue growth from its existing products and the sales performance of products under development once they are successfully launched. If the sales of the company’s existing products fail to achieve rapid growth, the R&D and launch process of pipeline products is slow, or the commercialization of newly launched products falls short of expectations, the company may continue to incur losses.