Xiangyu Medical (688626.SH), a Leader in Rehabilitation Medical Devices, Plans IPO of 40 Million Shares

Sunnyou (688626.SH) has released its prospectus, announcing a plan to publicly issue 40 million shares, accounting for 25% of the company's total share capital after the issuance. The preliminary inquiry date is March 16, 2021, and the subscription date is March 19, 2021.

The strategic placement in this issuance involves only the co-investment by the sponsor’s related subsidiary. The co-investing entity is Haitong Innovation Securities Investment Co., Ltd. There are no special asset management plans for senior management and core employees, nor any other strategic investor arrangements. The initial co-investment ratio of Haitong Innovation Securities Investment Co., Ltd. is 5% of the total number of shares in the public offering, i.e., 2 million shares. The specific co-investment ratio and amount will be determined after the issuance price is finalized.

It is reported that, as an R&D leader in China’s rehabilitation medical device industry, Xiangyu Medical Co., Ltd. provides a series of rehabilitation products and comprehensive solutions to medical institutions at all levels across China, elderly care facilities, disability rehabilitation centers, welfare institutes, educational institutions, and households.

The announcement shows that the company's net profit attributable to shareholders of the parent company for 2017, 2018, and 2019 was RMB 64.4742 million, RMB 80.3273 million, and RMB 129 million, respectively. In 2020, the company's operating revenue amounted to RMB 495.5 million, representing a year-on-year increase of 15.93% compared with 2019; the net profit attributable to shareholders of the parent company reached RMB 196 million, an increase of 51.88% over 2019.

In addition, the Company will allocate RMB 177 million from this fundraising to the technological transformation project for the production of intelligent rehabilitation medical equipment, RMB 147 million to the construction project for the production of elderly care and postpartum rehabilitation medical equipment, RMB 146.7 million to the construction project for the R&D and exhibition center for rehabilitation equipment, RMB 76.7576 million to the R&D and sales center (Southwest) project for intelligent rehabilitation equipment, and RMB 160 million to operational reserve funds.