CHISON, the third-largest exporter of ultrasound equipment and a strategic partner of BD, aims to list on the STAR Market, positioning itself against Mindray and Sonoscape.
Ultrasound Equipment Exports: Third Among Domestic Brands
On April 30, the Shanghai Stock Exchange accepted the application of Wuxi CHISON Medical Technologies Co., Ltd. (hereinafter referred to as “CHISON”) for an initial public offering (IPO) on the STAR Market.
Public records indicate that CHISON was established in 1996, with Mo Shanjue as its legal representative and Wuxi CHISON Investment Co., Ltd. as its controlling shareholder. The company is primarily engaged in the research and development, manufacturing, and sales of ultrasound medical imaging equipment. Its main business revenue is derived entirely from full-digital color Doppler ultrasound systems, black-and-white ultrasound systems, and technical services.
CHISON is one of the earliest enterprises in China to engage in the localization of ultrasound medical imaging technology, having mastered the full suite of core technologies for ultrasound medical imaging.
It is reported that CHISON primarily focuses on overseas sales, resulting in a relatively weak presence in the domestic market. According to estimates based on data from Signify Research, the global market size for ultrasound medical imaging equipment reached 193,056 units/sets in 2018. In the same year, the issuer sold 8,621 units/sets globally, capturing a market share of 4.47%.
According to data from China Customs, the company's ultrasound equipment exports ranked third among domestic brands in 2018.
According to the prospectus, CHISON plans to issue no more than 20 million shares in this offering, aiming to raise RMB 953 million. The funds raised will be used for projects such as the industrialization of ultrasound medical imaging equipment and the construction of R&D innovation and marketing operation bases.
Partnering with BD, Benchmarking Mindray and Sonoscape
CHISON’s primary revenue and profits are derived from ultrasound medical imaging equipment and its related technical services. To some extent, CHISON currently faces a significant issue of having a single-product structure.
The ultrasound medical imaging equipment industry is a technology-intensive sector, characterized by high demands for technological innovation and product R&D capabilities, as well as lengthy development cycles.
CHISON has also been continuously increasing its investment in research and development (R&D). Over the past three years, the company’s R&D expenditures amounted to RMB 28.2668 million, RMB 33.1158 million, and RMB 41.3454 million, representing 16.93%, 12.19%, and 12.65% of its operating revenue, respectively.
However, among domestic brands in the ultrasound equipment market, Mindray and SonoScape have always been the benchmark competitors for CHISON.
Undoubtedly, Mindray, as the leading domestic medical device enterprise, also holds a dominant position in the field of ultrasound equipment. Sonoscape, an emerging player in China's medical device industry, is often referred to as the "Mini Mindray." In recent years, benefiting from technological upgrades and the trend of domestic substitution, its market share has continued to expand both domestically and overseas.
However, CHISON will not merely follow in the footsteps of Mindray and Sonoscape. Last year, CHISON entered into a strategic partnership with the medical device giant BD.
Under the agreement, both parties will extend their strategic cooperation for the next four years on the basis of their existing partnership. CHISON will provide robust imaging support to BD, particularly in the field of vascular access, where BD’s extensive product portfolio will be integrated with CHISON’s ultrasound imaging solutions.
Ultrasound imaging, previously confined to departments of ultrasound, cardiology, obstetrics and gynecology, and health check-up centers, is becoming increasingly integrated with clinical departments, with its applications expanding widely in areas such as anesthesiology, surgery, and emergency care. BD has achieved a very high penetration rate in certain clinical departments and laboratory medicine departments within hospitals.
As a brand primarily focused on overseas sales, if CHISON and BD deepen their cooperation, the partnership will expand from the China region to a global scale, offering CHISON a pathway to transcend its current market position.
In its prospectus, CHISON stated that it will center on technological innovation and be guided by clinical needs to gradually enhance its R&D capabilities, continuously diversify its product portfolio, expand the application fields of its products, and vigorously push the boundaries of AI integration with ultrasound medical imaging.
Source:East Money Choice Data / Yiyeguan Cha / Lanjing Finance
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