Star Sports Medicine Co.,Ltd.: Racing in the Sports Medicine Track at the Hong Kong Stock Exchange

In late autumn 2024, at the Star Sports Medicine production base located on Jinghai Second Road in Beijing Economic-Technological Development Area, an automated production line for suture anchors was being assembled. The latest sales figures were particularly striking: overseas revenue for the first three quarters exceeded 38 million yuan, accounting for 14% of total revenue for the first time, and revenue growth from January to May 2025 was as high as 370% year-on-year. Few people know that this seemingly thriving Chinese medical device company had just undergone a "life-and-death test" of volume-based procurement—just six months earlier, 14 of its core implant products were included in the national centralized procurement list, with an average price reduction of over 60%.

From taking root in Daxing Science and Technology Park in 2017 to ranking fourth in China's sports medicine equipment market with a 6.5% market share in 2024, becoming the absolute leader among domestically produced brands, Beijing Star Sports Medicine Co., Ltd.'s eight-year journey resembles a condensed history of China's high-end medical device industry breaking through barriers.

When it submits its application for listing in Hong Kong again in March 2026, the prospectus behind it describes not only this company but also the restructuring journey of the entire sports medicine track under the dual pressures of policy and market.

On July 31, 2017, Star Sports Medicine Co., Ltd. was established, and the commissioning and acceptance of GMP-standard production facilities were initiated simultaneously, marking the company's official entry into the preparatory phase for scaled production. At that time, the landscape of China’s sports medicine market had long been solidified: international giants such as Medtronic and Smith & Nephew, with decades of technical accumulation and brand establishment, firmly controlled over 90% of the market share. Domestic manufacturers were mostly clustered in the low-end consumables sector, earning meager profits and struggling to overcome technological barriers. At that time, domestically produced sports medicine implants either relied on imported core components for assembly or suffered from significant shortcomings in material compatibility and biological stability, making it difficult for them to enter core medical treatment scenarios such as tertiary hospitals.

The key to Star Sports Medicine Co., Ltd.'s breakthrough lies in avoiding homogenized competition and focusing on the independent research and development of core technologies for implants. Sports medicine implants are known as "precision components of orthopedic surgery," with their material compatibility and biological stability directly determining surgical outcomes and patients' postoperative recovery. These have long been monopolized by foreign technologies. The prospectus shows that shortly after the company's establishment, a dedicated R&D team was formed to delve into the field of biomaterials. Through repeated experimentation to optimize product formulations and production processes, a critical technological breakthrough was finally achieved in 2020 — the launch of China’s first all-suture anchor, successfully addressing industry pain points such as traditional metal implants interfering with MRI scans and easily causing soft tissue irritation.

Technological breakthroughs were quickly converted into market recognition. In July 2018, the company obtained its first NMPA medical device certification, and its products rapidly entered leading domestic hospitals such as Beijing Jishuitan Hospital and Shanghai Sixth People's Hospital, becoming key pilot products for these hospitals to explore alternatives produced in China. In 2020, the company simultaneously earned the titles of "National High-tech Enterprise" and "Top 50 High-tech and High-growth Companies in China," with annual sales exceeding 25 million yuan, achieving a critical leap from technological R&D to market implementation.

The timely intervention of capital became an accelerator for the company's expansion. In March 2020, they received angel round investment from Legend Capital; in July 2020, they again received angel round investment from Legend Capital; in March 2021, Delta Capital invested in their Series A round; in January 2022, Star Sports Medicine received a Series B round of financing worth hundreds of millions of yuan led by OrbiMed, with Legend Capital as a follow-up investor. In January 2023, the company also completed an equity financing round, with new investors including Langmafeng Venture Capital, Haida Investment, CCB International, Yahu Investment, and Yinhe Yuanhui.

By this stage, Star Sports Medicine had already carved a niche in the seemingly impenetrable fortress built by industry giants. By the end of 2020, the number of hospitals using the company’s products exceeded 1,000. Although the overall market size was still limited, the company had successfully established an initial reputation for "reliable Chinese-produced alternatives" within core medical institutions, setting the stage for future expansion.

In July 2021, Star Sports Medicine Co., Ltd. officially launched its overseas distribution business. The prospectus defined this decision as a core step in the "dual-market drive" strategy. At that time, competition in China's sports medicine market had become intense, with international giants increasing their localized presence, squeezing the survival space of domestically produced manufacturers. Expanding into emerging overseas markets became the key to breaking through the growth bottleneck.

The path to expanding into overseas markets is fraught with challenges. Medical institutions in regions such as Europe and Southeast Asia hold certain biases against Chinese medical devices, with core concerns focusing on product quality and the reliability of clinical data. To break through this barrier, the company established a professional overseas promotion team, bringing products to international medical exhibitions in Germany, France, and other countries while simultaneously submitting applications for local market access. By presenting comprehensive clinical data and product performance test reports, the company gradually gained recognition from overseas distributors and medical institutions. After six months of effort, the company secured its first overseas distributor order, officially opening the door to the international market.

This strategic move quickly yielded results. By the end of 2021, the number of overseas distributors had increased from 8 at the beginning of the year to 24, and by 2023, it had further exceeded 40. Products were exported to more than 50 countries and regions, including France, Poland, and Spain, with overseas business gradually becoming an important supplement to the company's revenue. As of September 30, 2025, the number of overseas distributors had grown to 63.

The in-depth cultivation of the domestic market has also yielded remarkable results. In 2022, the company was awarded the title of "Little Giant" enterprise at the national level for its core technology advantages and comprehensive product pipeline, with annual sales exceeding 100 million yuan for the first time. In 2023, the Beijing Testing Center obtained CNAS certification, won the "First Prize of Shanghai Municipal Science and Technology Progress Award," and the number of hospitals using its products surged to over 3,000, including more than 1,000 tertiary hospitals, covering the core medical institutions in most provinces across China.

Over the past three years, the company has built four major technology platforms: biomaterials, imaging power, intelligent healthcare, and tissue engineering, forming a complete portfolio of 62 approved products, including 27 Class III medical device certificates, ranking among the top in China's industry. Through continuous technological iteration, the company keeps optimizing product performance. Core products such as all-suture anchors and absorbable interface screws have achieved clinical results close to imported counterparts while priced at only 60%-70% of imported products, demonstrating strong market competitiveness.

Scale expansion has brought significant cost advantages. By collaborating with key suppliers on the design of raw materials and production process planning, Star Sports Medicine Co., Ltd. reduced the procurement price of the critical material PEEK from 900,000 yuan/ton in 2020 to 300,000-400,000 yuan/ton in 2023, a decrease of over 50%. The reduction in costs further enhanced product profitability. In 2023, the company's revenue reached 238.5 million yuan, an increase of 62.7% compared to 146.6 million yuan in 2021; net profit was 57.11 million yuan, a year-on-year increase of 41.5%, demonstrating the dual driving effect of "technology + scale."

In April 2024, the national volume-based procurement policy officially extended to the sports medicine field. The prospectus detailed the impact of this industry change: 14 core implant products were included in the procurement list. According to the procurement rules, the average price reduction for selected products exceeded 60%, meaning the profit margins of the company's main products would be significantly compressed. Many companies in the industry chose to forfeit selection or reduce production capacity, and some even exited the market.

Facing industry changes, Star Sports Medicine Co., Ltd.'s strategy is to actively embrace centralized procurement, trading price for volume. By controlling costs across the entire chain and optimizing the product mix, the company maintains profitability. It quickly adjusts production plans, expanding the scale of centralized procurement products through bulk purchasing, optimized production processes, and simplified packaging, further reducing unit production costs. At the same time, it negotiates more favorable procurement terms with key suppliers, optimizes supply chain management, and improves capital efficiency.

At the same time, the company has increased the promotion of non-centralized procurement products, focusing on advancing the market expansion of surgical equipment and related consumables to offset the profit pressure brought by centralized procurement. The prospectus shows that the company's surgical equipment and related consumables have not been included in the centralized procurement scope and possess technical barriers, becoming an important support for the company's profitability.

This strategy has produced results beyond expectations. In 2024, the company's implant sales volume surged by 113.8% year-on-year, reaching 560,100 units. Despite the average selling price dropping from 711.9 yuan/unit to 446.3 yuan/unit, revenue from the implant business still achieved a growth of 34.0%, reaching 250 million yuan. More crucially, effective cost management allowed the gross margin of implants to rebound to 76.6% in the first three quarters of 2025, significantly improving from 72.4% in 2024. The company’s total revenue reached 327 million yuan in 2024, with a net profit of 95.389 million yuan.

At the same time, the surgical equipment and related consumables business performed outstandingly, with revenue reaching 76.986 million yuan in 2024 and gross profit margin increasing to 60.5%, becoming a new profit growth point for the company. The rapid increase in market share confirmed the effectiveness of the strategy. In 2024, Star Sports Medicine Co., Ltd. ranked fourth in the sports medicine implants market with an 8.8% share and sixth in the surgical equipment and related consumables market with a 3.2% share, both indicators ranking first among domestically produced enterprises in China. In contrast, the market shares of international giants experienced varying degrees of decline, indicating subtle changes in the industry landscape.

By September 30, 2025, the company's cumulative product sales will exceed 1.8 million units, with revenue of 273.3 million yuan in the first three quarters and a net profit of 89.87 million yuan, representing year-on-year growth of 23.9% and 47.6%, respectively. Despite the impact of centralized procurement, the company achieved counter-cyclical growth, demonstrating its risk resistance through actual operating data. Overseas income continues to rise, with full-year overseas revenue for 2025 expected to reach 70.27 million yuan, accounting for 17.4%.

Behind Star Sports Medicine Co., Ltd.'s decision to go public in Hong Kong lies the attractive growth prospects of the sports medicine sector. According to data from CIC, the number of patients with sports medicine-related conditions in China is expected to reach 168.6 million cases in 2024 and exceed 200 million cases by 2030. The market size for sports medicine implants and devices is projected to grow from 5.4 billion yuan in 2024 to 12.1 billion yuan in 2030, with a compound annual growth rate (CAGR) of 14.3%. Even more promising is the intelligent rehabilitation sector, where the market is anticipated to experience a CAGR of 47.5% between 2025 and 2030, reaching 22.9 billion yuan by 2030. Star Sports Medicine's previously established sports prescription rehabilitation system is targeting this blue ocean market, becoming a significant potential growth driver for the future.

But the challenges cannot be ignored. In the global market, international giants such as Medtronic and Smith & Nephew still occupy the top three market shares, with their technological accumulation, brand influence, and R&D investment still holding significant advantages. Notably, Star Sports Medicine Co., Ltd. applied for a listing on the STAR Market in September 2023, but the application was terminated in June 2025 after sponsor CICC withdrew it. The prospectus cited "market conditions and the extended time required for approval" as reasons. Whether this Hong Kong IPO can successfully raise funds will directly impact its development speed in cutting-edge fields such as regenerative medicine and surgical robotics.

Standing at the Critical Juncture of Listing in Hong Kong, Star Sports Medicine's Growth Story Continues. If the IPO succeeds, the company will gain more financial support to accelerate the commercialization of 32 products under development, further solidifying its leading position among China-produced enterprises. This company, which started in Daxing, Beijing, has spent eight years transitioning from being a follower to becoming a peer leader in the sports medicine sector, demonstrating strong resilience despite the impact of centralized procurement. However, the real test lies ahead—after the listing: how to maintain profitability while sustaining growth, how to expand market share amid international competition, and how to continuously retain an innovative edge amidst rapid technological advancements are all ongoing challenges that the company must address.

Driven by the dual forces of an expanding athletic population and an aging society, sports medicine has become one of the fastest-growing sectors in the medical device field. The breakout story of Star Sports Medicine Co., Ltd. is not only about the survival of a single enterprise but also reflects the survival wisdom of China's high-end medical device industry amidst policy adjustments and technological innovation. Between the "perils" of centralized procurement and the "opportunities" of domestically produced alternatives, and between the encirclement by international giants and the breakthroughs of local companies, this life-and-death race in the sports medicine sector is set to unfold even more exciting chapters.