On December 30, Beijing Percutek Therapeutics Medical Equipment Co., Ltd. submitted the prospectus for its initial public offering of shares. Accordingly, the company plans to list on the Shanghai Stock Exchange's STAR Market via an IPO. The company intends to issue shares for the first time, with the number of shares issued accounting for no less than 25% of the total share capital after issuance; no existing shareholders will publicly sell their shares in this issuance. The total investment amount for the company’s proposed projects is 1.296 billion yuan, and it plans to raise 1.293 billion yuan. The main fundraising projects are the New Production Base Project for High-End Medical Devices, the Research and Development Project for Vascular Disease Treatment Medical Devices, and the supplementation of working capital.
The prospectus shows that the company is a high-tech enterprise in China, focusing on the research, development, and application of innovative products and therapies in the field of vascular disease treatment. Its main business involves the research, development, production, and sales of medical device products in the fields of aortic, peripheral and coronary, neuro-intervention, and access. In 2019, 2020, 2021, and January-June 2022, the company achieved operating revenues of 48.9444 million yuan, 50.0017 million yuan, 88.8269 million yuan, and 60.8369 million yuan respectively. During the same periods, the net profits attributable to the parent company's shareholders were -32.8125 million yuan, -126 million yuan, -120 million yuan, and -27.5418 million yuan respectively. During the reporting period, the proportion of revenue from aortic stent graft products in the main business income was 100%, 100%, 83.16%, and 86.70% respectively, constituting the company's main source of income.
The main reason for the company's continued losses is that the company's products have a relatively short time on the market, and the already launched products have not yet achieved large-scale commercialization, thus failing to form significant economies of scale. Moreover, the company’s ongoing R&D projects are progressing continuously, with some products currently undergoing clinical trials, resulting in substantial R&D expenses during the reporting period. At the same time, in order to implement a long-term incentive mechanism for talent, the company has granted equity incentives to employees, leading to high share-based payment expenses during the reporting period. The company's future profitability will mainly depend on its existing products.Operating RevenueThe growth as well as the sales performance after the successful market launch of products under development. If the sales of the company's existing products fail to achieve rapid growth, the R&D and market launch progress of products under development is slow, or the commercialization after the market launch of products under development falls short of expectations, the company may face the risk of continuous losses.
In November 2021, the National Healthcare Security Administration issued the "Notice on Printing and Distributing the Three-Year Action Plan for DRG/DIP Payment Reform," clearly stating that from 2022 to 2024, the comprehensive completion of DRG/DIP payment reform tasks will be achieved to promote high-quality development of medical insurance. With the full implementation of the DRG payment policy, the sales prices of high-value medical devices may decrease to a certain extent due to the constraints of standardized payment by disease category, posing potential risks of decline in the sales prices and gross profit margins of the company's products.
