New stock news | China Medical Technology submits application to Hong Kong Stock Exchange, becoming the largest third-party SPD solution provider in China.

According to the disclosure by the Hong Kong Stock Exchange on January 21, Anhui Zhongji Guoyi Medical Technology Co., Ltd. (referred to as "Guoyi Technology") has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Haitong International Capital Limited as its exclusive sponsor. According to the prospectus, Guoyi Technology is the leader in China's third-party SPD solution market. According to a Frost & Sullivan report, based on the revenue by 2024, Guoyi Technology is the largest third-party SPD solution provider in China, with a market share of 29.2%. According to the same report, the company is also the first third-party SPD solution provider in China. Company Profile The prospectus mentions that SPD refers to supply, processing, and distribution, an innovative supply chain model aimed at optimizing the supply and management of medical supplies in hospitals. This model is recognized for its flexibility and adaptability and typically covers (i) the procurement of medical supplies in hospitals and the management of their suppliers, (ii) the handling and circulation management of medical supplies in hospital central warehouses, and (iii) the distribution and issuance management of medical supplies to various departments within the hospital. Traditional hospital medical supply chain models heavily rely on manual operations and decentralized management, using paper records, limited information sharing, and lack real-time visualization of inventory and procurement. Guoyi Technology's SPD solution comprises three core components, namely SPD software systems, intelligent hardware, and professional services. Currently, the company's SPD solution covers the procurement, storage, distribution, and use management of medical supplies, helping hospitals reduce operational costs and improve supply management efficiency. As of September 30, 2025, Guoyi Technology's SPD solution has been deployed in 116 hospitals in 13 provinces in China, including 3 of the 8 A++ hospitals that have adopted the SPD solution according to the Frost & Sullivan report and 91 tertiary hospitals (of which 61 are tertiary hospitals). Guoyi Technology has achieved significant market penetration in economically developed regions with concentrated medical resources in China, such as the Yangtze River Delta region. As of the same date, the company's SPD solution has been deployed in 82 hospitals in the Yangtze River Delta region. In addition to the SPD solution business, Guoyi Technology has also developed an IDS solution with AMR as the core. IDS, or Intelligent Distribution System, is an advanced information-driven transportation and logistics system based on IoT and AI technologies and advanced hardware such as AMR (Autonomous Mobile Robot & Automation). Guoyi Technology's IDS solution in hospitals was launched in 2024, covering various logistical transport of different types of materials in complex hospital environments, including medical consumables, medications, sterilized medical equipment, high-risk specimens, and medical waste, covering key operational scenarios such as operating rooms, pharmacies, and laboratories. As of the final practicable date (January 15, 2026), Guoyi Technology's product portfolio includes seven AMR models, namely (i) Siasun Robot & Automation logistic transportation from hospital central warehouse to hospital secondary warehouse, (ii) Siasun Robot & Automation logistics transportation in the operating room, (iii) Siasun Robot & Automation distribution of drugs and intravenous infusion, (iv) Siasun Robot & Automation transportation of bulk supplies and medical equipment, (v) Siasun Robot & Automation transportation of specimens, (vi) Siasun Robot & Automation distributed logistics of disinfection supply center, and (vii) Siasun Robot & Automation collection of medical waste, each developed to address specific clinical and operational needs within hospital environments. Financial Information Revenue For the nine months ending on September 30, 2023, 2024, and 2025, the company's revenue was approximately RMB 248 million, RMB 378 million, and RMB 306 million, respectively. Net Profit and Comprehensive Income for the Year/Period For the nine months ending on September 30, 2023, 2024, and 2025, the company's net profit and comprehensive income for the year/period were approximately RMB 12.306 million, RMB 57.585 million, and RMB 43.199 million, respectively. Gross Margin For the nine months ending on September 30, 2023, 2024, and 2025, the company's gross margin was 37.1%, 41.8%, and 38.8%, respectively. Industry Overview In China, SPD solutions mainly focus on medical consumables and medications. In the entire SPD industry, the total transaction value of goods is a key indicator of the scale of distribution business. The distribution amount refers to the total transaction value of all relevant goods distributed by service providers during a specific period calculated at the actual purchase price. In terms of the total transaction value of goods, the overall size of the Chinese SPD solutions market increased from RMB 18.4 billion in 2019 to RMB 181.5 billion in 2024, with a compound annual growth rate of 58.1%. By 2029, the entire Chinese SPD solutions market is expected to grow to RMB 1,057.4 billion, with a compound annual growth rate of 42.3% from 2024 to 2029. Specifically, the total transaction value of medical consumables traded through SPD solutions in China increased from RMB 15.9 billion in 2019 to RMB 151.3 billion in 2024, with a compound annual growth rate of 56.9%. By 2029, it is expected to grow to RMB 724.9 billion, with a compound annual growth rate of 36.8% from 2024 to 2029. In addition, the total transaction value of medications traded through SPD solutions in China increased from RMB 2.5 billion in 2019 to RMB 30.2 billion in 2024, with a compound annual growth rate of 64.9%. By 2029, it is expected to grow to RMB 332.6 billion, with a compound annual growth rate of 61.6% from 2024 to 2029. While some medical supply vendors in China started offering SPD solutions earlier than third-party SPD solution providers, the latter have quickly become essential players in the market. The third-party SPD solution market can be measured based on the total transaction value of goods, but a more typical measure is based on revenue, reflecting the value of the services provided. In 2024, based on the total transaction value of goods, third-party SPD solution providers accounted for RMB 47.4 billion or 26.1% of the overall SPD solutions market, and this proportion is expected to continue growing rapidly, reaching RMB 526.6 billion or 49.8% of the overall SPD solutions market by 2029. Based on revenue, the size of the Chinese third-party SPD solutions market increased from RMB 100 million in 2019 to RMB 1.1 billion in 2024, with a compound annual growth rate of 75.7%. Based on revenue, it is expected to grow to RMB 9.6 billion by 2029, with a compound annual growth rate of 53.3% from 2024 to 2029. Board of Directors Information The Board of Directors is responsible for managing and conducting business and has general authority. The board of directors of Guoyi Technology currently consists of nine directors, including four executive directors, two non-executive directors, and three independent non-executive directors. Equity Structure As of the final practicable date, (i) Mr. Ding Zhenhu directly holds 1.94% equity of the company; (ii) Hefei Lingdao Yi (directly held and controlled by Mr. Ding, with 77.50%) directly holds 18.06% equity of the company; and (iii) Yishang Yuntian, Yishang Caihe, and Yishang Lihe (controlled by Mr. Ding as their (executive) general partners) hold 4.23%, 4.23%, and 3.28% equity of the company, respectively. Therefore, Mr. Ding is entitled to exercise or control a combined 31.74% and 26.98% equity stake (assuming not exercised) immediately before and immediately after completion of [compile] respectively. As a result, Mr. Ding, Hefei Lingdao Yi, Yishang Yuntian, Yishang Caihe, and Yishang Lihe collectively as a group of shareholders will not be considered the controlling shareholders of the company but will continue to be the single largest shareholder group after [compile] completion. Intermediary Team Exclusive Sponsor: Haitong International Capital Limited Company Legal Advisers: Morgan Lewis & Bockius, Jingtian & Gongcheng Legal Advisers of Exclusive Sponsor: Han Kun Law Offices, Han Kun Law Firm Auditors and Reporting Accountants: Ernst & Young Hua Ming Industry Consultants: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Adviser: Transcenture Capital Limited