Allmed Medical, China's Top Exporter of Medical Dressings for Nine Consecutive Years, Files IPO Prospectus

Today (February 19), Allmed Medical Products Co., Ltd. officially released the Prospectus for Its Initial Public Offering and the Announcement on Preliminary Price Inquiry and Promotion for the Initial Public Offering of A-Shares, planning to list on the SME Board of the Shenzhen Stock Exchange. The company intends to issue no more than 48 million new shares (accounting for no less than 10% of the total share capital after issuance). The stock abbreviation is Allmed Medical, and the stock code is 002950.

The Company primarily provides OEM services to internationally renowned medical device manufacturers, with export revenue constituting the primary source of its income. In 2015, 2016, and 2017, export revenue accounted for 87.53%, 92.71%, and 96.67% of the Company’s total operating revenue, respectively.

According to the latest prospectus disclosed by Allmed Medical, the company, founded in 2002, has long been dedicated to the healthcare sector. Its core business involves the research and development, manufacturing, and sales of disposable medical consumables, such as medical dressings, while providing OEM private-label services to internationally renowned medical device brands. The company emphasizes deep integration across the medical dressing industry chain. To date, it has established a complete production chain encompassing all stages, including spinning, weaving, bleaching and scouring, processing, packaging, sterilization, and testing, thereby demonstrating significant advantages in automated and large-scale production.

Medical dressings constitute a niche subsector of the medical device industry, with products including gauze, non-woven fabrics, bandages, and other medical hygiene materials. Allmed Medical primarily provides OEM (Original Equipment Manufacturer) services—i.e., contract manufacturing—for international medical device brands such as Johnson & Johnson in the United States.

Based on their intended use, Allmed Medical’s current product portfolio is categorized into four major series: wound care and dressing products, surgical/operative supplies, infection prevention and control products, and procedure kits. The company’s products are primarily exported to multiple countries and regions, including the United States, Canada, and Germany, with overseas customers consisting mainly of large-scale medical dressing brand owners or manufacturers.According to statistics from the China Chamber of Commerce for Import and Export of Medicines and Health Products, medical dressing products manufactured by Aomei Medical have ranked first in exports for nine consecutive years.

In terms of revenue, from 2015 to 2017, Allmed Medical achieved operating revenues of approximately RMB 1.585 billion, RMB 1.558 billion, and RMB 1.711 billion, respectively, with corresponding net profits attributable to shareholders of the parent company amounting to approximately RMB 157 million, RMB 248 million, and RMB 234 million, respectively.

According to the latest disclosure in the prospectus, the funds raised by Allmed Medical Products Co., Ltd. from this IPO will be invested in two projects: the “Annual Production of 600,000 Spindles of Medical Cotton Yarn and 1.2 Billion Square Meters of Medical Gauze Project” of Xinjiang Allmed Medical Textiles Co., Ltd., and the “Production and Construction Project for Medical Hygiene Nonwoven Products.” The total investment amounts for these two projects are RMB 809.1884 million and RMB 310.997 million, respectively. The funds will be used to acquire land, establish production facilities, and add advanced production equipment, thereby meeting the company’s production needs for cotton yarn, greige fabric, and nonwoven fabrics. This expansion aims to increase capacity for existing mature products while enhancing the company’s overall profitability.

In fact, in China’s medical dressing market, Allmed Medical, Winner Medical, and Zhende Medical are known as the “Big Three” of medical dressings. As early as April 12, 2018, Zhende Medical was the first to list on the Shanghai Stock Exchange, becoming the first publicly traded company in the medical dressing industry. Meanwhile, Winner Medical, which had submitted its initial public offering (IPO) application as early as October 2017, saw its IPO application rejected.

— Reposted from CIBLUE Devices