Vishee Medical Lists on STAR Market Amid Soaring Demand in Rehabilitation Medical Device Industry

Original Title: Rapid Growth in Demand for the Rehabilitation Medical Device IndustryVISHEELaunched Today

On July 21, 2020, Nanjing Vishee Medical Technology Co., Ltd. (stock abbreviation: Vishee Medical; stock code: 688580) was officially listed on the STAR Market, with the sponsoring institution (lead underwriter) beingChangjiang SecuritiesUnderwriting and Sponsorship Co., Ltd.

Rapid Growth in Demand for Rehabilitation Medical Devices Industry, Broad Market Space

In recent years, with the continuous advancement of technology, many novel rehabilitation therapy technologies have been gradually developed and commercialized. It is understood that VISHEE is primarily engaged in the research and development, manufacturing, and sales of rehabilitation medical devices and products. The company has currently developed various categories of rehabilitation medical devices and products, including electrical stimulation, magnetic stimulation, and electrophysiology, forming a comprehensive portfolio of rehabilitation products and holistic solutions. These are applied in fields such as pelvic floor and postpartum rehabilitation, neurological rehabilitation, and psychiatric rehabilitation, holding significant medical, economic, and social value.

Driven by national policies such as medical insurance coverage and the two-child policy, coupled with residents’ continuously growing demand for rehabilitation services, the market demand for rehabilitation medical devices has sustained growth in recent years. According to data from Frost & Sullivan, from 2014 to 2018,

The market size of China's rehabilitation medical device industry grew from RMB 11.5 billion to RMB 28 billion, with a compound annual growth rate of

24.9%, the market size of rehabilitation medical devices in China is expected to grow at a compound annual growth rate of 19.1% to

RMB 67 billion in 2023.

Leveraging its numerous advantages, VISHEE has demonstrated a trend of sustained and rapid growth in its main business revenue. In 2018 and 2019, the company’s operating revenue increased by 43.80% and 53.47% year-on-year, respectively. Currently, VISHEE’s products are widely used in over 6,000 medical and professional institutions across China. During the reporting period, the company achieved operating revenues of RMB 144 million, RMB 208 million, and RMB 319 million, respectively, representing a compound annual growth rate (CAGR) of 48.55% from 2017 to 2019. Among rehabilitation medical device enterprises in China with publicly disclosed operational data, VISHEE ranks among the top in terms of revenue scale.

China has a vast population in need of rehabilitation, which has generated substantial demand for rehabilitation medical services and rehabilitation medical devices. From the perspective of industry development trends, future rehabilitation services will increasingly cover various functional impairments and chronic diseases, while continuously extending to grassroots levels, moving towards home-based and community-oriented models to serve a broader population.

Continuous R&D Investment, Advanced Technology Platform

After years of accumulation and development, VISHEE has established advanced technology platforms in electrical stimulation, magnetic stimulation, and electrophysiology, and mastered core technologies with independent intellectual property rights. The company currently holds 64 patents, including 8 invention patents and 35 utility model patents.

VISHEE has continuously invested in research and development (R&D) to ensure the vitality and competitiveness of its R&D system. During the reporting period, the Company’s R&D expenditures amounted to RMB 13.0412 million, RMB 18.5431 million, and RMB 27.3835 million, respectively, accounting for 9.03%, 8.92%, and 8.59% of its operating revenue for the corresponding periods.

As of December 31, 2019, the Company had 85 R&D personnel, accounting for 17.67% of its total workforce, thereby establishing a multidisciplinary, multi-tiered, and well-structured R&D and technical team. The Company is capable of assigning professional project managers, project systems engineers, and cross-functional project teams according to project requirements, ensuring reliable project execution. Through cross-departmental collaboration, the Company ensures that its product development is driven by actual market demands from the outset. By integrating the latest industry technological trends, end-user feedback, and competitive product analysis, the Company determines its product development strategy.

Looking ahead, VISHEE stated that it will continue to benchmark against the technological development directions of internationally leading companies in each specialized segment, consistently achieve technological breakthroughs, and accelerate the commercialization of its advanced technologies. The company will iterate and upgrade its existing electrical stimulation products, magnetic stimulation products, electrophysiology products, and consumables and accessories through technological innovation, while continuously investing in the research and development of next-generation magnetic stimulators and rehabilitationRobotand other related products.

(This article does not constitute any investment advice; information disclosure shall be subject to the company’s announcements. Investors who act on this information do so at their own risk.)