Huizhou Huayang Medical Devices, a 'Little Giant' in Advanced Wound Care with ~90% Overseas Revenue, Files IPO Prospectus
“The Chinese market for medical functional dressings, particularly in the high-end segment, still relies primarily on imports,” Huayang Medical told VCBeat.
Before delving into the medical dressing industry, it is essential to clearly distinguish between traditional dressings and functional dressings. Traditional dressings are typically nursing dressings based on cotton gauze and petrolatum gauze. Functional dressings, also known as advanced wound dressings, are primarily designed for hard-to-heal chronic wounds such as diabetic foot ulcers, pressure injuries, venous leg ulcers, and burns. These dressings maintain a moist wound environment, promote wound healing, effectively alleviate patient pain, and inhibit bacterial infection, thereby accelerating the wound recovery process.
As the global population aging issue becomes increasingly prominent, leading to a rise in patients with conditions such as ulcers and pressure sores, the global demand for advanced wound dressings continues to expand. However, according to the “Market Research and Development Trend Forecast Report on the Medical Dressing Industry (2023–2029)” by Puhua Youce, China’s medical dressing market is still dominated by traditional products with lower added value, such as cotton, gauze, and bandages, which account for more than 80% of the market share. In the field of advanced wound dressings, the primary market and technological advantages remain concentrated in developed countries in Europe and the United States.
As with the rise of many industries in China, in the 1990s, large multinational medical device companies began shifting the production of traditional wound care products to regions such as Asia and South America, driven by continuously rising labor costs in developed countries. Leveraging its advantages in labor costs and industrial supply chains, China absorbed this wave of industrial transfer and gradually developed a cohort of medical dressing manufacturers primarily engaged in original equipment manufacturing (OEM) for major international brands and focused on exports. Huizhou Foryou MEDICAL Devices Co., Ltd. (“Foryou Medical”) is a typical representative of the latter.
Since its establishment in 2005, Huayang Medical has been deeply engaged in the fields of high-end medical functional dressings, hemostatic materials, and absorbable materials for nearly two decades. Leveraging the "moist wound healing theory," the company has developed a series of core technologies, including silver-based antibacterial sustained-release technology, silicone gel coating and perforation technology, and needle-punched blended fabric technology. It owns three major brand series: Luofukang (advanced wound dressing products and solutions), Shataiqi (polymer hemostatic products), and Huasubao (absorbable biomaterials). Most of these products have obtained both US FDA 510(k) clearance and EU CE certification, and are best-selling in the United States, the United Kingdom, Canada, Russia, Turkey, and other regions.
Meanwhile, the company has been honored with numerous accolades, including National “Little Giant” Enterprise Specialized in Refinement, Uniqueness, and Innovation; National High-Tech Enterprise; Guangdong Province Specialized, Refined, Differential, and Innovative SME; Guangdong Province High-Growth SME; Guangdong Province Class A Quality Credit Medical Device Manufacturer; and Guangdong Province Engineering Technology Research Center for Novel Functional Dressings. It holds nearly 40 authorized patents domestically and internationally, along with over 100 registered trademarks at home and abroad. The company has obtained multiple international quality system certifications, including ISO 9001, ISO 13485, and KGMP. It is one of the few domestic manufacturers of novel functional medical dressings to have passed the U.S. FDA on-site inspection with “zero non-conformities.”
Honors Received by Foryou Medical (Partial)
“Forging ahead through hardships to blaze new trails.” From Huizhou to the United States, the United Kingdom, Russia, Brazil, the Middle East, South Africa, Indonesia, Turkey, and beyond; from serving a single client to supporting more than 300 clients worldwide; and from transitioning into absorbable biomaterials to becoming the leading ODM provider of novel functional medical dressings—Huayang Medical has spent nearly two decades achieving this journey.
Since its inception in 2005, Huayang Medical has been dedicated to exploration and research in the field of wound and trauma care. In its early stages, the company focused on the development of absorbable biomaterials, successfully producing raw materials such as PGLA, PGA, and PDO for manufacturing absorbable sutures and hemostatic clips. This achievement made it one of the few enterprises in China capable of large-scale mass production of such biodegradable materials at that time.
“But we neglected in-depth exploration of the end-user market and failed to fully penetrate the raw materials market.” Recalling the development challenges faced a decade ago, Huizhou Foryou MEDICAL Devices Co., Ltd. (Huayang Medical) makes no attempt to conceal them. That period marked the company’s “darkest hour.” Had it continued to focus intensively on the materials sector, Huayang Medical might have become embroiled in a protracted struggle characterized by high investment and long payback periods, even facing an existential crisis.
Against this backdrop, Huizhou Foryou MEDICAL Devices Co., Ltd. (Huayang Medical), through in-depth market research and leveraging its technical expertise in material R&D, identified a growing demand for functional dressings in developed markets across Europe and North America. Consequently, in 2014, the company decisively adjusted its development strategy, shifting its R&D and production focus from absorbable biomaterials to high-end medical functional dressings. With a specialization in chronic wound care, Huayang Medical established three core business segments: medical functional dressings, hemostatic materials, and absorbable materials. It successfully launched three flagship brand series: Luofukang (advanced wound dressing products and solutions), Shataiqi (polymer-based hemostatic products), and Huasubao (absorbable biomaterials).
Since then, the gears of fate have shifted direction. Huayang Medical successfully turned losses into profits, transitioning from a “struggle-for-survival mode” to a “leapfrog development mode.” From 2015 to the present, the company has maintained a strong growth trajectory, with both revenue and profits achieving double-digit annual increases.
Looking back at this decision from today’s vantage point, it appears clear-cut. However, for Huizhou Foryou MEDICAL Devices Co., Ltd. (Huayang Medical), which was then shrouded in the market “fog” a decade ago, this undoubtedly constituted a “perilous pivot.” It was precisely this bold transformation that enabled Huayang Medical to emerge as a prominent player in the high-end functional dressing sector, establishing itself as a leading domestic ODM provider of functional medical dressings.
It is precisely due to Huizhou Foryou MEDICAL’s persistent dedication to specialization and professionalism, its firm belief in the philosophy that quality builds brands, and its management team’s profound understanding of the industry coupled with forward-looking strategic vision, that it attracted the attention of Defu Capital. Defu Capital has long adhered to the principles of “focusing on healthcare and value investing” and consistently practices the investment philosophy of “capital rooted in finance, heart committed to industry.” Following extensive negotiations and thorough due diligence, Huizhou Foryou MEDICAL successfully introduced Defu Capital as a strategic investor. It is believed that such a highly compatible, aligned, and synergistic strategic investor will help Huizhou Foryou MEDICAL optimize and refine its equity structure, enhance corporate governance, strengthen market competitiveness, achieve high-quality development, and ensure steady, sustainable long-term growth.
After nearly two decades of exploration and accumulation, Huayang Medical has established a technology-oriented rather than product-oriented R&D laboratory. It has set up six major technical platforms: the Antimicrobial Dressing Laboratory, the Fluid-Control Dressing Laboratory, the Adhesive Dressing Laboratory, the Pressure Dressing Laboratory, the Biomaterials Laboratory, and the Gel & Hemostatic Dressing Laboratory. Leveraging the advantages of China’s complete industrial chain, the company has achieved independent R&D, independent regulatory registration, independent manufacturing, self-sufficiency in core raw materials, and ownership of its own brand.
Drawing on its deep expertise in wound care and insights into the cutting-edge technological development pathways within the field, Huizhou Foryou MEDICAL has established the “DIMES” principles. DIMES is a set of nursing guidelines closely aligned with modern moist wound healing theory, designed to provide healthcare professionals and patients with an easy-to-remember framework. It emphasizes comprehensive wound bed preparation by integrating Debridement, Infection Control, and Moisture Balance. If wounds remain non-healing despite these interventions, consideration should be given to promoting Edge Effect or providing additional Support & Service, thereby ensuring comprehensive and effective wound management, facilitating healing, and reducing the risk of complications.
The “DIMES” principle integrates product R&D, manufacturing, and academic education into a multidimensional framework, enabling Huizhou Foryou MEDICAL to chart a clearer, more comprehensive, and systematic course for its product and technology pathways in the field of chronic wound care. Amidst the surge in ODM (Original Design Manufacturer) dressings, the company has taken a proactive approach by guiding European and American clients to complete their product portfolios and strengthen their chronic wound care systems. In doing so, Huizhou Foryou MEDICAL has truly differentiated itself from most dressing ODM enterprises, standing out in the wave of “Made in China.” Not content with merely achieving “Quality Made in China,” it is leading the industry toward “Intelligently Made in China,” securing a strategic high ground in the intelligent innovation of functional dressings.
The company's currently marketed products include Shataiqi.®Absorbable Hemostatic Gauze, Shataiqi®Nasal Hemostatic Sponge, Luofukang® Soft Silicone Wound Dressing, Luofukang®Silicone Gel Scar Repair Patch, Luofukang®Alginate Dressing, Luofukang®Polyurethane Foam Dressing, Huasuobao®Polyglycolide, TMC, PDO, and dozens of other products.
Selected Products from Foryou Medical
Take the humble gauze as an example. Huizhou Foryou MEDICAL Devices Co., Ltd. spent eight years perfecting its “cloth,” developing ShaTaiQi.®Absorbable Hemostatic Gauze: Its special weaving pattern provides excellent conformability, making it suitable for applications such as parenchymal organ wound surfaces, oozing from tumor beds, anastomotic sites of hollow organs, and laparoscopic surgeries.
Compared with the majority of imported products on the market that utilize oxidized regenerated cellulose (ORC) as their technological basis, Huayang Medical’s Shataiqi® Absorbable Hemostatic Gauze, which employs carboxymethyl cellulose (CMC) technology, is a product within the category of plant fiber-based hemostatic materials. It achieves adjunctive hemostasis by rapidly forming an ex vivo thrombus through gel formation, which enhances platelet adhesion and accelerates red blood cell aggregation. Due to its rapid gelling properties and tissue adhesiveness, this product demonstrates more significant hemostatic efficacy and is effective for patients with coagulation disorders or impaired coagulation function. Clinical evidence has confirmed that it can achieve rapid hemostasis within just 1–3 minutes, followed by quick absorption and safe elimination from the body.
Shataiqi® Absorbable Hemostatic Gauze
LUOFUCON®Biguanide Alginate Antimicrobial Dressing is another flagship product independently developed by Huizhou Foryou Medical. This is a single-use sterile dressing based on alginate fibers, with polyhexamethylene biguanide (PHMB) added as an antimicrobial agent. It can be used to cover body surface wounds, effectively reducing the microbial load on the wound bed and managing infection by continuously absorbing exudate and killing bacteria.
PHMB has a history of over 60 years as an antimicrobial agent and has been widely used in Europe and the United States. As a polycationic compound, PHMB attracts various bacteria with negatively charged surfaces, adheres to and disrupts their cell membranes, causing leakage of cellular contents and ultimately leading to bacterial death.
Unlike other impregnated PHMB antimicrobial dressings, Huizhou Foryou MEDICAL employs proprietary technology to chemically graft a specific content of PHMB onto the fibers. This process endows alginate fibers with structurally stable biguanide groups possessing antimicrobial activity, overcoming the issue of easy free release of PHMB. As a result, the alginate fibers achieve stable and long-lasting antimicrobial performance while enhancing product safety.
LUOFUCON® Biguanide Alginate Antibacterial Dressing
Furthermore, as I have recently been focusing on the collagen sector, I have also noted that Huizhou Foryou MEDICAL Devices Co., Ltd. has launched LUOFUCON.®Collagen Series Products: Currently, two products have received marketing authorization—sheet collagen dressings and collagen powder. Both are the first in their respective categories in China to obtain U.S. FDA 510(k) clearance. This marks a significant step for Huayang Medical’s advanced dressings, transitioning from inert polymeric materials to bioactive biological products. The series is suitable for various types of wound management, including chronic wounds (such as ulcers and pressure injuries), acute wounds (such as lacerations and burns), and surgical wounds. Clinicians can select and apply these products based on specific wound conditions and needs.
Interestingly, unlike most domestic companies that generally opt for recombinant collagen or collagen peptide technologies, Huizhou Foryou MEDICAL Devices Co., Ltd. (Foryou Medical) firmly chose the technical route of extracting and purifying natural animal-derived collagen from the outset. According to Foryou Medical, the triple-helix structure of natural collagen plays a crucial role in wound healing. This intact triple-helix structure makes the collagen more similar to the body’s own structural components, thereby enhancing biocompatibility and reducing the risk of immune rejection or allergic reactions. Furthermore, collagen with an intact triple-helix structure exhibits superior mechanical properties, including strength and toughness. When applied in medical dressings, it provides excellent supportive performance, helping to protect damaged tissue and promote wound healing, while also adapting to the contours and movements of the wound site, thus offering greater conformability.
More importantly, the intact triple-helical structure of collagen can mimic the natural extracellular matrix (ECM) environment in the human body. Multiple bioactive sites within its intact structure can interact with cell surface receptors, modulating cellular biological activities and signal transduction pathways, providing signals necessary for cell adhesion and growth, and thereby promoting cell migration, proliferation, and differentiation, which influences the processes of wound healing and tissue repair and regeneration.
LUOFUCON® Collagen Dressing
Huayang Medical has established a dominant presence in overseas markets, with its products selling well in the United States, the United Kingdom, Russia, Brazil, the Middle East, South Africa, Indonesia, Turkey, and other regions, serving over 300 clients. Amidst a tightening global financial environment, Huayang Medical achieved counter-trend growth, with sales increasing by approximately 20% and profits by approximately 30% in 2023. Overseas business revenue accounted for nearly 90% of the company’s total revenue.
Among these, export operations are primarily conducted under the ODM model, with a main presence in the two major markets of the European Union and the United States, serving multiple well-known brand owners across various niche segments.
As a next-generation ODM provider of medical functional dressings, Huayang Medical not only flexibly adjusts product design and manufacturing processes to meet customer needs, offering personalized products and solutions, but also provides a one-stop comprehensive service solution covering multiple stages—including product design and development, raw material procurement, manufacturing, quality control, market access assistance, marketing promotion, clinical academic support, packaging, and logistics—thereby helping customers achieve full lifecycle management of their products.
It is reported that, based on existing production lines, Huizhou Foryou MEDICAL Devices Co., Ltd. has an annual output capacity of 58.5 million units for multilayer composite adhesive dressings, 12.6 million units for fiber-based dressings, 1.5 million units for absorbable hemostatic gauze, and 600,000 units for collagen dressings, along with 3.75 metric tons of absorbable biomaterials.
The surge in business growth is inseparable from strong support by talent and technology. The company has assembled a team of management and technical professionals with expertise in polymer materials, applied chemistry, biomedical engineering, biology, and basic medical sciences. Furthermore, the company strictly adheres to an R&D reserve fund system, allocating no less than 5% of the previous year’s sales revenue to its annual R&D budget.
To date, the Company has obtained 36 U.S. product registrations (18 FDA 510(k) clearances and 18 listed products); three EU CE certificates (covering nine Class IIb devices, one Class IIa device, and two sterile Class I devices), and is the first enterprise in China’s medical functional dressing industry to receive a TÜV SÜD-issued MDR certificate for passive Class IIb medical devices. For domestic registration, it has secured five Class III registration certificates, ten Class II registration certificates, and three Class I registration certificates.
In terms of corporate development, Huizhou Foryou MEDICAL Devices Co., Ltd. (Foryou Medical) formulated an ambitious “Three-Year Doubling” plan as early as 2023. Looking back at the past year, the company successfully achieved its predefined targets, with 2024 serving as a pivotal year for realizing these goals. To this end, Foryou Medical will adopt a more proactive strategy for overseas market expansion, comprehensively optimize its global market layout, and ensure the stability and security of its supply chain. Meanwhile, the company will accelerate the promotion of sales under its own brand to achieve its development objectives at an earlier date.