Bomaitech Plans RMB 1.2 Billion IPO Despite Unsaturated Capacity Utilization

Recently, the official website of the Shenzhen Stock Exchange (SZSE) disclosed that BrosMed Medical Co., Ltd. (hereinafter referred to as “BrosMed Medical”) has updated its prospectus for its initial public offering (IPO) on the ChiNext board. Although BrosMed Medical’s fundraising investment projects involve capacity expansion, the company’s production capacity utilization rates for coronary balloons, peripheral balloons, and guidewires were not saturated during the reporting period. Meanwhile, the company’s core products have been included in centralized volume-based procurement programs, which may subject end-user prices to continued downward pressure.

BrosMed Medical specializes in the R&D, manufacturing, and global sales of high-performance vascular interventional medical devices. As a leading global provider of interventional treatment solutions for complex vascular diseases, it stands at the forefront of technology and product innovation within the industry. Additionally, BrosMed Medical is a leading Chinese manufacturer in the field of vascular interventional balloon catheters, ranking among the top in both production volume and sales domestically.

During the reporting period, BrosMed Medical maintained revenue growth. Financial data shows that from 2023 to 2025, the company achieved operating revenues of approximately RMB 335 million, RMB 460 million, and RMB 655 million, respectively; with corresponding net profits attributable to shareholders of the parent company of approximately RMB 28.5025 million, RMB 77.4426 million, and RMB 77.0084 million, respectively.

In 2025, BrosMed Medical generated revenues of approximately RMB 439 million, RMB 160 million, RMB 47.5308 million, and RMB 4.4369 million from its coronary intervention, peripheral intervention, other intervention and accessories, and R&D services segments, respectively, accounting for 67.42%, 24.6%, 7.29%, and 0.68% of the company’s total main business revenue, respectively.

It should be noted that the Company’s accounts receivable balance has continued to expand. During the reporting period, the carrying amounts of the Company’s accounts receivable were RMB 37.2315 million, RMB 64.5287 million, and RMB 85.9391 million, accounting for 9.7%, 12.68%, and 16.17% of current assets, respectively.

In this IPO, BrosMed Medical plans to raise RMB 1.2 billion, which will be allocated to the Songshan Lake Global Headquarters Project, the Technological Transformation (Phase I) Project of the Hunan Production Base, and the R&D Project for Interventional Medical Devices, with respective investments of RMB 640 million, RMB 160 million, and RMB 400 million.

However, during the reporting period, BrosMed Medical’s production capacity utilization was not saturated, with the capacity utilization rate for coronary balloons experiencing a slight decline in 2025. According to the prospectus, from 2023 to 2025, the company’s production capacity for coronary balloons was 1.868 million units, 2.088 million units, and 2.595 million units, respectively, with capacity utilization rates of 68.15%, 84.34%, and 82.81%. During the same period, the production capacity for peripheral balloons was 312,000 units, 356,000 units, and 550,000 units, respectively, with capacity utilization rates of 58.03%, 69%, and 89.82%; the production capacity for guidewires was 185,000 units, 210,000 units, and 250,000 units, respectively, with capacity utilization rates of 68.27%, 76.59%, and 80.4%.

Meanwhile, as of the date of signing this prospectus, the Company’s coronary dilation balloons have been included in centralized procurement across all provinces in China; peripheral vascular balloon dilation catheters and other vascular interventional balloons have been included in centralized procurement in certain provinces; and drug-coated balloons have been included in nationwide centralized procurement.

BrosMed Medical also cautioned in its prospectus that “the advancement of the volume-based procurement policy and the company’s future bid-winning status for its main products under such procurement will significantly impact the selling prices, sales volumes, and gross profit margins of its products, thereby affecting the company’s future revenue and profitability.”

In the view of Zhang Yue, Chairman of Aoyou International, BrosMed Medical’s capacity expansion is not merely aimed at the existing domestic volume-based procurement (VBP) market; rather, it strategically focuses on in-house production of core components such as hypotubes to reduce manufacturing costs under VBP, while targeting increased sales volume in overseas markets with more favorable pricing and profit margins.

“However, the company’s current production capacity utilization rate is only 80% to 90%. If domestic sales and overseas expansion fall short of expectations after the new capacity is put into operation, there will be large-scale idle capacity, with fixed asset depreciation continuously eroding profits. In addition, volume-based procurement (VBP) may lead to a significant decline in product prices, while capacity expansion adds substantial fixed costs; relying solely on ‘volume to offset price’ is unlikely to cover depreciation, potentially compressing the gross margin of individual products. Meanwhile, if the winning bid share in subsequent VBP rounds declines, or if overseas registration and channel expansion proceed slowly, the newly added capacity will not be effectively absorbed, and idle capacity may exacerbate cash flow pressures,” said Zhang Yue.

In response to the relevant issues, a Beijing Business Today reporter sent an interview request to BrosMed Medical, but no reply had been received as of press time.