Mingde Bio Listed on A-Share Market, Becoming the Third POCT-Focused Company on China's Main Board

VCBeat (WeChat ID: vcbeat) has learned that on July 10, Wuhan Mingde Bioengineering Co., Ltd. (“Mingde Bio”) successfully listed on the A-share market, making its official debut on the Shenzhen Stock Exchange under the stock code 002932. It becomes the third A-share diagnostic reagent company with point-of-care testing (POCT) as its core business, following Wondfo Biotech and Getein Biotech.

Mr. Li Youxiang, Member of the Standing Committee of the Wuhan Municipal Committee of the Communist Party of China and Deputy Mayor; Ms. Chen Lili, Chairman of Mingde Biology; Mr. Song Haibo, President of the Medical Laboratory Industry Branch of the China Health Industry Enterprise Management Association; and Mr. Ren Peng, General Manager of Sinolink Securities, attended the stock listing ceremony together.

At the listing ceremony, Mr. Li Youxiang delivered a congratulatory address, stating, “We have entered the Shenzhen Stock Exchange to jointly witness the historic moment of Wuhan Mingde Biotech Co., Ltd.’s initial public offering (IPO) and listing of A-shares… Taking this opportunity, we hope that friends from all sectors of society will continue to support the development of Mingde Biotech and remain attentive to the development of Wuhan.”

Mingde Biology issued 16.646 million shares in this offering, at a price-to-earnings ratio of 22.99 times, raising a total of RMB 340 million. The proceeds will be primarily used for the expansion of in vitro diagnostic reagent production, development of mobile healthcare products, construction of R&D centers, expansion of marketing networks, and supplementation of working capital.

Mingde Biology, established in 2008, is primarily engaged in the independent research and development, production, and sales of POCT (point-of-care testing) rapid diagnostic reagents and rapid detection instruments, and has currently become one of the major suppliers in the POCT field.

The company has achieved multiple technological innovations and breakthroughs in the field of POCT rapid diagnostic reagents, mastering whole blood filtration technology, multiplex antibody labeling technology, colloidal gold preparation technology, and chemiluminescent magnetic enzyme immunoassay technology. Leveraging these technologies, it has established a POCT reagent R&D platform, with its product line covering over 20 categories of disease testing across six major areas: infectious diseases, cardiovascular and cerebrovascular diseases, renal diseases, diabetes, obstetrics and gynecology (eugenics and prenatal care), and health check-ups.

As early as January 2014, Mingde Biology listed on the New Third Board, becoming one of its veteran companies. During its listing period, the company benefited significantly from the New Third Board’s expansion and bull market, achieving remarkable results. In 2016, it topped the New Third Board Value Ranking, with a market capitalization exceeding RMB 2 billion.

However, Mingde did not rest on its laurels despite the strong performance on the NEEQ. On July 13, 2017, the company announced its delisting from the NEEQ and made plans for an A-share listing. On December 29, 2017, Wuhan Mingde Bio-tech Co., Ltd. disclosed its prospectus on the website of the China Securities Regulatory Commission (CSRC).2018Year5Month3Mingde Bio announced that it had successfully passed the regulatory review.

As disclosed in the prospectus, the Company’s operating revenues from 2014 to January–June 2017 were RMB 57.8025 million, RMB 95.3416 million, RMB 140.9791 million, and RMB 83.9308 million, respectively, while its net profits were RMB 21.5397 million, RMB 35.5965 million, RMB 59.6920 million, and RMB 34.1391 million, respectively.

Meanwhile, the company’s revenue increased by 64.94% and 47.87% year-on-year in 2015 and 2016, respectively; from 2014 to 2016, its annual revenue grew from RMB 57.8025 million to RMB 140.9791 million, with a compound annual growth rate (CAGR) of 56.71%, maintaining a trend of rapid revenue growth.

Currently, leading enterprises in China’s POCT industry are predominantly located in economically developed regions along the southeastern coast, such as Guangdong, Shanghai, and Nanjing. In addition to the three publicly listed companies—Wondfo Biotech, Getein Biotech, and Mingde Biotech—other representative domestic POCT enterprises include Aupu Biotech, Pumen Technology, Hotgen Biotech, Guosai Biotech, and Lepu Medical.

Mingde Biology’s core products consist of POCT rapid diagnostic reagents and rapid testing instruments. Following several years of rapid development, the company has achieved sustained revenue growth, expanded its market share, and enhanced its brand influence. It has emerged as one of the leading suppliers in China’s in vitro diagnostics (IVD) sector, particularly within the POCT segment, where it has established a distinct competitive advantage.

According to the “Global Point-of-Care Diagnostics Market Outlook 2018” (Rncos) report, China’s POCT market size was USD 740 million, USD 930 million, and USD 1.15 billion in 2015, 2016, and 2017, respectively. Converted at the average annual RMB-to-USD exchange rate for each respective year, Medbase Biotech’s domestic market share in China was 2.06%, 2.28%, and 2.13% in 2015, 2016, and 2017, respectively. Its market share is expected to expand to 5–8% over the next three years.

Now that Mingde Biology has finally made its debut on the A-share market, it has become the third A-share listed diagnostic reagent company with POCT as its core business, following Wondfo Biotech and Getein Biotech. It is believed that the power of the capital market will drive Mingde Biology’s R&D progress and large-scale operations, further consolidate and enhance its competitive advantage in the industry, and promote the continuous expansion of China’s POCT industry.