Shanghai Hanyu Medical Technology Co., Ltd. submitted the prospectus for its initial public offering of shares (draft) on March 1. The company plans to list on the STAR Market, with this offering consisting of no more than 26.625 million shares, accounting for no less than 25% of the total share capital after issuance. The company expects to raise approximately 1.722 billion yuan in funds, of which 253 million yuan will be used for production base construction projects; 856 million yuan will be allocated for R&D center construction and registration trial projects; 214 million yuan will be utilized for marketing network construction projects; and 400 million yuan will be used to supplement working capital.
Hanyu Medical mainly engages in the research, development, production, and commercialization of interventional devices for structural heart diseases and electrophysiology products. In 2019, 2020, 2021, and the first half of 2022, the company achieved revenues of 0 million yuan, 4.9 million yuan, 34.054 million yuan, and 21.666 million yuan respectively; net losses were 49.1924 million yuan, 157 million yuan, 191 million yuan, and 58.842 million yuan respectively.Since its establishment, the company has been continuously engaged in the research and development of innovative medical devices, and has not yet achieved the commercial production and sales of its products.As of the end of September 2022, the company's accumulated undistributed profit was -344,711,400 yuan.
During the reporting period, the company continued to incur losses and had accumulated uncompensated deficits. The main reason is that since its establishment, the company has been engaged in the research and development of innovative medical devices, which typically have long R&D cycles and require continuous investment before achieving commercial production, thus leading to ongoing losses. Additionally, share-based compensation expenses arising from equity incentives have significantly increased the company’s losses. The company’s R&D expenses are expected to remain at a relatively high level, and there is also some uncertainty regarding the commercialization progress of future products after their market launch. Therefore, the company may continue to be unprofitable or see its accumulated uncompensated deficits expand further.
