New Stock News | Taima Medical Technology submits secondary listing application to Hong Kong Stock Exchange as a supplier of digital solutions for the medical and scientific industry.

According to the disclosure of the Hong Kong Stock Exchange on July 30th, Zhejiang Taimei Medical Technology Co., Ltd. (referred to as Taimei Medical Technology) has submitted a second listing application to the main board of the Hong Kong Stock Exchange, with CICC and Morgan Stanley as its joint sponsors. It is reported that the company submitted a listing application to the Shanghai Stock Exchange's Sci-Tech Innovation Board in December 2021, and on March 17, 2023, the Shanghai Stock Exchange issued a letter terminating the application for an A-share listing. On January 29, 2024, the company submitted its prospectus to the Hong Kong Stock Exchange for its initial public offering (IPO) in Hong Kong. According to the prospectus, as a digital solutions provider focused on the medical science industry in China, Taimei Medical Technology designs and provides industry-specific software and digital services to accelerate the research, development, and marketing of medical science products such as innovative drugs and medical devices. Taimei Medical Technology's software is cloud-based, allowing users to access it anytime from various devices via the internet without the need to install or maintain software on their devices. In addition to software, the company also provides a range of digital services, mainly involving image evaluation, trial design and management, and data collection and analysis. During the past reporting period, cloud software revenue accounted for 42.3%, 38.4%, 35.2%, and 34.3% of total revenue in 2021, 2022, 2023, and the three months ended March 31, 2024, respectively. During the same period, digital services revenue accounted for 57.6%, 61.6%, 64.5%, and 65.7% of total revenue. Taimei Medical Technology's cloud software and digital services are mainly provided through its two digital collaboration platforms (TrialOS and PharmaOS). The company's digital collaboration platforms play a pivotal role in connecting various parties in the medical science industry chain (including pharmaceutical and medical device companies, hospitals, third-party service providers, patients, and regulatory agencies). According to Zhoushi Consulting, Taimei Medical Technology is the only provider in China that offers a one-stop digital solution for the medical science industry from research and development to marketing. In addition, Taimei Medical Technology is also developing the next generation of digital collaboration platforms, including Trials and Unbounded. Trials is designed specifically for medical science research and development. It is currently being further developed to add more functional modules and is expected to be launched by the end of 2024. To enhance PharmaOS's medical science marketing capabilities, Taimei Medical Technology has developed another new generation platform called Unbounded. Unbounded was launched in the second half of 2023, providing more external services to doctors through online and offline channels. In terms of customers, Taimei Medical Technology's customers include medical science companies such as pharmaceutical and medical device companies, as well as Contract Research Organizations (CROs) and clinical research institutions. The number of Taimei Medical Technology's customers increased from 908 in 2021 to 1033 in 2022, and further increased to 1107 in 2023, and finally to 896 and 870 as of March 31, 2023, and March 31, 2024, respectively. In the current industry situation, the emergence of SaaS products has lowered the digital barriers for medical science companies, leading to a surge in demand for digitization in the medical science industry. The combination of cloud software and digital services solutions has created commercial value for the research and marketing of the medical science industry in China. It is estimated that by 2028, the market size of digital solutions for medical science research and marketing in China will reach RMB 24.3 billion, with a compound annual growth rate of 20.2% from 2023 to 2028. In the highly fragmented market of digital solutions for medical science research and marketing in China, the market share of the top five market participants as of 2023 revenue accounted for 23.1%. According to Zhoushi Consulting, the company ranks first in the market with a market share of 5.9% based on the same index in 2023. Additionally, according to Zhoushi Consulting, Taimei Medical Technology is also the largest provider of digital solutions for medical science research and development in China, with a market share of 8.2% in 2023. Financially, as of the years 2021, 2022, 2023, and the three months ended March 31, 2024, the company achieved revenues of approximately RMB 466 million, RMB 549 million, RMB 573 million, and RMB 132 million, respectively. During the same periods, net losses were approximately RMB 480 million, RMB 423 million, RMB 356 million, and RMB 118 million, respectively. According to Taimei Medical Technology's prospectus, the company cannot guarantee that its monetization strategy or business initiatives will be successfully implemented or generate sustainable revenue and profit. During the reporting period, most of the company's revenue came from providing cloud software and digital services to medical science companies, third-party service providers (such as CROs), clinical research institutions, and others. Therefore, the company's business may highly depend on its ability to retain existing and attract new customers in the medical science industry, especially its ability to provide a platform that empowers medical science research and marketing solutions to meet a wide range of customer needs. If Taimei Medical Technology fails to retain existing customers and attract new ones, the company's business, operating performance, financial condition, and prospects could be significantly adversely affected.