Endolite China Files IPO Prospectus: Delivering Custom Prosthetic and Orthotic Solutions with Global Brand Backing
It is reported that the total number of persons with disabilities in China stands at 82.96 million, among whom 24.12 million have physical disabilities. The number of amputees is 2.26 million, accounting for 8% of the population with physical disabilities. According to the 2020 Assistive Technology Intelligence Research Report issued by the National Research Center for Rehabilitation Technical Aids, 900,000 individuals with physical disabilities in China have been fitted with prostheses, representing 39.8% of the amputee population.60% of amputees have not yet been fitted with prostheses. According to the report data,There are approximately one million amputees living in rural areas, towns, and villages in China, most of whose families have incomes too low to afford prosthetic limbs., many amputees either choose not to be fitted with prostheses or opt to passively wait for other means of obtaining free prosthetic devices.
Endelai Rehabilitation Equipment (Beijing) Co., Ltd. (hereinafter referred to as “Endelai”) was established in 2003. It is a chain-brand enterprise specializing in prosthetics, orthotics, and assistive devices in China, and also serves as the Chinese distributor for products under the Blatchford brand of the UK-based company Blatchford. ItsThe product portfolio covers prosthetics, orthotics, accessibility facilities, and home modification engineering, prioritizing cost-effectiveness while ensuring performance., bringing hope to people with disabilities in China.
Blatchford, established in 1890, has been at the forefront of prosthetic and orthotic product research, development, and manufacturing for over 130 years. The company pioneered the world’s first fitting system centered on the concept of “making prosthetics adapt to the patient.” A recipient of the Queen’s Award for Enterprise and the Design Council Award, Blatchford is the world’s oldest and largest specialized manufacturer and provider of prosthetic and orthotic solutions, encompassing production, sales, fitting, and aftercare services.
Liu Yanhong, founder and chairman of Endelai, is 58 years old this year, marking his 28th year in the prosthetics industry.
In 1982, after graduating from Hubei Engineering University with a specialization in internal combustion engine systems, Liu Yanhong heeded the national call to support economic development policies by returning to her hometown to become a vocational education teacher, a role she held for ten years.
In the 1980s, vocational education in China was flourishing. However, a decade later, as the market for skilled technical workers gradually became saturated, people increasingly pursued higher academic degrees, leading to enrollment challenges for vocational institutions. In 1992, Liu Yanhong, who had been teaching for ten years, resolutely left the education sector to venture into business.
At that time, it was no easy feat for government officials to leave the public sector and start their own businesses. Considering that many of his classmates had moved to Shenzhen after graduation, Liu Yanhong resolutely headed south to Shenzhen as well. In the first half of 1993, he found a job at a foreign-funded company specializing in prosthetics and orthotics. “That company was my mentor—my lifelong mentor. It was there that I entered this industry,” said Liu Yanhong.
Liu Yanhong spent another decade at the company, rising from an entry-level technician to the head of its mainland China operations. Over these ten years, he gained a deep understanding of, and firsthand insight into, the current state of development, as well as the challenges and pain points, facing China’s prosthetics industry.
Liu Yanhong stated, “Although China has a large population of individuals with limb disabilities, the prosthetics industry and market environment are in a significant downturn. At that time, while working for a foreign-invested enterprise, I observed that many products available abroad could not be manufactured domestically, or that foreign products far surpassed domestic ones in terms of technological sophistication, aesthetics, and performance. There were few manufacturers in China with production and processing capabilities, and the quality of prosthetic fitting services was uneven. It was then that I decided to start my own business, aiming to introduce advanced foreign technologies to enhance the quality of rehabilitation products and prosthetic fitting services in China, thereby benefiting more people.”
In 1998, Liu Yanhong accepted a company transfer to Beijing to develop new markets. The time had come.
In 2003, Liu Yanhong officially registered Endelai Rehabilitation EQUIPMENT(Beijing) Co., Ltd., and has since established more than 30 branded companies across China.Liu Yanhong stated, “The overall architecture comprises two lines. The first line consists of branch offices invested in by myself, including 13 entity companies and five technical service centers. The second line involves brand projects, comprising more than 10 companies and three to five technical service centers.”
After the company was established, Liu Yanhong identified a problem: there were too few high-quality prosthetic and orthotic products available in China, and their prices were prohibitively high, making them unaffordable for most people with disabilities.
At that time, the market model for domestic prosthetic products involved distributors acting as agents for foreign products and selling them to direct-sales fitting providers across various regions. These fitters then served individuals with limb disabilities by configuring mid-to-high-end products tailored to their needs, resulting in a significant price differential at the consumer end.
Liu Yanhong studied products from multiple countries. During the investigation, he found that mid-to-high-end foreign products are very popular in China, and several foreign prosthetic and orthotic product manufacturers have already established direct subsidiaries in the country. However, Blatchford, a UK-based company with a longer history and a more comprehensive product line, has not yet achieved significant development in the Chinese market.
"Identify quality products, secure distribution rights, and eliminate intermediaries to drive down prices." This was Liu Yanhong’s philosophy, and she put it into practice. Over the course of three years,In April 2017, Liu Yanhong became an agent for Blatchford products through a brand-owned direct sales model, providing customized prosthetic and orthotic fitting services directly to individuals with disabilities at all Endelai company-owned stores in China, thereby reducing the price of the agency products by nearly 30%., bringing benefits to more people with limb disabilities.
Meanwhile, Endelai also began to engage in contract manufacturing for some domestically produced products. To enhance service quality, Endelai established an exclusive chain service system in China, providing regular on-site services.There are currently over 30 technical service and maintenance centers and multiple service outlets across China.In addition, the company provides a seasoned socket fabrication team, fully equipped training rooms, and rehabilitation therapy rooms, offering persons with disabilities more convenient and safe prosthetic and orthotic fitting, maintenance, replacement, and technical services.
Currently, including agency products, the company offers nearly 30 types of upper-limb products, nearly 30 types of below-knee prostheses, and more than 50 types of above-knee prostheses, totaling over 100 varieties.
Each Endelai product is assigned a specific compatibility rating, including activity-level compatibility and impact-force diagnostic compatibility, which are determined by certified prosthetists following an assessment of the residual limb.By rating customers based on various factors such as activity level, physical fitness, body weight, and occupation, we identify the intersection point of these coordinates. We then use this point to configure parameters for the footplate, ankle joint, and knee joint, creating a unique product combination tailored to each user. This reflects the company’s long-standing philosophy: the best choice is what fits you best.
Among the products distributed by the company, there is a flagship product namedKX06 Large-Cylinder Hydraulic Knee JointKX06 Large-Cylinder Hydraulic Knee Joint is suitable for users with high activity levels, offering powerful performance and adaptability to various harsh environments. Constructed from aerospace-grade titanium, it is lightweight yet high-strength, enhancing walking ability and service life. It features Endelai’s proprietary large-cylinder hydraulic processing and control technology, providing exceptional support while incorporating an instantaneous joint self-locking mechanism to improve stability and safety. Its unique multi-linkage technology enables the “tibia” to move posteriorly during knee flexion, thereby reducing flexion resistance, conserving energy, and improving walking capacity.
KX06 Large-Cylinder Hydraulic Knee Joint Image source: Endelai official website
Liu Yanhong introduced, “It offers excellent maneuverability, combining flexibility with stability while being labor-saving. It has gained popularity among many middle-aged and young customers, with annual sales reaching nearly 300 units.”
Endelai has also made some explorations in high-end products. In 2011, Endelai collaborated with Tianjin University of Technology to develop aEndelai Intelligent Bionic Hand, officially launched in 2015. This is a free prosthetic hand,"Hand movement control is achieved by capturing surface electromyographic (sEMG) signals from the residual limb muscles using EMG sensors."The bionic hand is powered by a rechargeable lithium battery, with a single charge meeting daily power requirements. It offers 16 selectable gesture modes and 6 operational modes.
Liu Yanhong introduced, “While this product may not yet match the precision of high-end foreign models in terms of appearance, its performance—including movement and dimensions—reaches comparable international standards. Moreover, its assembly cost is under RMB 50,000, whereas similar foreign products have production costs exceeding RMB 100,000, making cost-effectiveness its greatest advantage.” The company also offers after-sales service that includes free replacements within a three-year warranty period.
Endelai Intelligent Bionic Hand | Image source: Endelai official website
From October 15 to 17, 2021, the China International Welfare Expo & China International Rehabilitation Expo (CR EXPO) will be grandly held at the China National Convention Center in Beijing. Endelai will showcase its two star products at this welfare expo: the KX06 Large-Cylinder Hydraulic Knee Joint and the Endelai Intelligent Bionic Hand.
CR EXPO, hosted by the China Disabled Persons’ Federation (CDPF), has been successfully held for fourteen sessions to date. It is a national-level exposition for assistive devices for persons with disabilities under the auspices of Chinese state ministries and commissions, and stands as one of China’s largest and most impactful gatherings for the rehabilitation and assistive technology industries. As the only national-level exhibition in the rehabilitation and assistive device sector officially organized by the CDPF, CR EXPO 2021 boasted unparalleled scale and influence, featuring an exhibition area of 25,000 square meters, over 350 exhibiting companies, and more than 50,000 professional visitors. This year’s expo will prominently feature dedicated zones for mobility aids, prosthetics and orthotics, rehabilitation, information and communication assistive devices and low-vision aids, accessibility solutions, and elderly care, bringing together the latest technologies and applications from the global rehabilitation, assistive technology, elderly care, and health industries.
Endelai also provides rehabilitation assistive devices and accessibility modifications for a larger number of families with disabled members, accounting for approximately 40% of the company’s output value.Endelai is also a designated rehabilitation institution for assistive devices under the Disabled Persons' Federations of multiple cities and prefectures.
When addressing the current constraints hindering the company’s development, Liu Yanhong highlighted two key issues. First, younger generations may have a limited understanding of the prosthetics industry, which could lead to a long-term talent shortage. Second, there are widespread challenges within the industry. Since 2015, the Chinese government has introduced policies that lowered entry barriers, which is beneficial for the industry’s long-term growth. However, this has also given rise to certain negative consequences, such as insufficient professionalism, inconsistent standards for store operations and technical practices, and market disorder. She expressed hope that regulatory guidelines would be issued to standardize the market and ensure the healthy and orderly development of the industry.
Liu Yanhong stated that she hopes to build Endelai into a true national brand in the prosthetics industry. First, it willContinue to expand the market and broaden regional coverage, enabling more individuals with physical disabilities to access products with higher cost-effectiveness. Second,Seeking Partners for Brand Franchising. Additionally,Expand the product line and continue to extend assistive devices as well as home accessibility design and renovation projects., enabling more people with disabilities to live with greater convenience and peace of mind.
“‘Gratitude in heart, virtue through good deeds.’ The company name ‘Endelai’ not only retains the Chinese translation of the original ‘Endolite’ product brand but also embodies our long-held aspiration: to benefit people with disabilities through our actions, truly supporting and assisting them, and bringing mobility back into their lives,” said Liu Yanhong.