New Stock News | Continuous Decline in Profit, Shanghai Pigeon Submits Disclosure Form to Hong Kong Stock Exchange for the Third Time

According to the disclosure by the Hong Kong Stock Exchange on February 27th, Huge Dental Limited (referred to as "Huge Dental" below) submitted an application to the Hong Kong Stock Exchange Main Board, with CICC and DBS as joint sponsors. The company had previously submitted listing applications to the Hong Kong Stock Exchange on February 18th and August 18th in 2025. Company Overview According to the prospectus, Huge Dental is a professional dental materials company, offering a diversified product portfolio covering clinical dental products, dental laboratory products, and digital dental products, suitable for various applications in the core dental professional field. The company mainly produces and sells dental materials in China through a distribution model and gradually expands into international markets. In 2024, the Chinese dental materials market accounted for 42.2% of the overall dental medical device market (including dental equipment and instruments), which has a highly fragmented nature. In the same year, the company's market share in the Chinese dental materials market by revenue was 1.3%. Huge Dental's comprehensive product matrix covers all scenarios in dental medical institutions (including dental hospitals and clinics) and dental laboratories, effectively meeting the diverse clinical needs of customers in various fields including restorative, implantology, operative dentistry, orthodontics, and pediatric dentistry. Based on sales revenue in 2024, the company is the largest manufacturer of dental impression materials in China and is also one of the largest manufacturers of clinical dental materials in China, with the most CE marked or FDA approved dental clinical materials among domestic manufacturers. Among Huge Dental's products, six products (namely elastic impression materials, synthetic resin teeth, temporary crown bridge resin blocks, bite registration silicones, zirconia ceramic blocks, and lingual orthodontic clear aligners) typically contribute more than 5% of revenue each year during the historical period. Elastic impression materials are the highest revenue-generating product, accounting for approximately 35% of total revenue during the historical period. Synthetic resin teeth and temporary crown bridge resin blocks together accounted for about 30% of total revenue during the historical period. According to Frost & Sullivan data, in terms of sales revenue in 2024, Huge Dental's elastic impression materials and synthetic resin teeth ranked first in the Chinese market. According to the same data, in terms of sales revenue in 2024, Huge Dental's elastic impression materials also ranked first among domestic brands in the global market. Financial Data Revenue In 2023, 2024, and 2025, the company achieved revenues of approximately RMB 358 million, RMB 399 million, and RMB 400 million, respectively. Annual Profit In 2023, 2024, and 2025, the company achieved annual profits of RMB 88.354 million, RMB 76.569 million, and RMB 47.699 million, respectively. Gross Margin In 2023, 2024, and 2025, the company's gross margins were 57%, 58.6%, and 58.3%, respectively. Industry Overview Dental medical devices refer to materials, equipment, and instruments used by dentists in treatment. Driven by factors such as population aging, increased awareness of oral health, and technological advancements in treatment, the dental medical device market is experiencing rapid growth. From 2019 to 2024, the dental medical devices industry expanded significantly and is expected to continue to grow strongly until 2030. The dental medical device market includes the dental materials market and the dental equipment and instruments market. The global dental medical device market is a large and continuously growing segment of the global healthcare industry that demands mature markets in developed economies such as Europe and North America, as well as rapidly expanding markets in regions such as Southeast Asia. The market grew from RMB 261.2 billion in 2019 at a compound annual growth rate of 5.3% to RMB 338.3 billion in 2024 and is expected to continue growing at a compound annual growth rate of 9.8% from 2024 to 2030, reaching RMB 592.1 billion in 2030. Industry leaders such as 3M, Dentsply Sirona, Ivoclar, GC, and Kuraray Noritake dominate the high-end clinical and dental laboratory materials submarkets with their strong research and development capabilities, powerful brand assets, and comprehensive integrated solutions. At the same time, emerging Chinese companies (such as Huge Dental, Angelalign, Upcera, and Aidite) are rapidly gaining market share. These participants leverage their ability to offer cost-effective alternative products and strategically target the rapidly growing markets in China and Southeast Asia. In 2024, Huge Dental held approximately 0.2% of the global dental materials market share based on sales revenue. Chinese Dental Medical Device Market The Chinese dental medical device market is large and growing rapidly. In 2023, the population in China affected by dental caries reached 765 million, and it is projected to continue growing from 2024 to 2030, highlighting a large patient base. Despite a relatively high disease burden, per capita dental healthcare consumption in China remains relatively low compared to developed markets, indicating significant penetration opportunities in the future. In addition, dental healthcare services hold a significant priority in individual healthcare consumption, providing resilience for demand growth. The size of the Chinese dental medical device market grew from RMB 43.4 billion in 2019 at a compound annual growth rate of 10.4% to RMB 71.2 billion in 2024 and is expected to grow at a compound annual growth rate of 15.2% from 2024 to 2030, reaching RMB 166.7 billion in 2030. Board of Directors Information The board of directors consists of seven directors, including four executive directors and three independent non-executive directors. Equity Structure As of the last practicable date, the Chairman, Executive Director, and CEO Mr. Song indirectly control 52.56% of the issued shares of the company with voting rights through HugeVanguard and Huge Star. Intermediary Team Joint Sponsors: China International Financial Hong Kong Securities Limited, DBS Asia Financing Limited Company Legal Advisors: For Hong Kong and US laws: Kirkland & Ellis LLP, for Chinese laws: King & Wood Mallesons, for Cayman Islands laws: Maples and Calder (Hong Kong) LLP, for international sanction laws: Ashurst Horitsu Jimusho Gaikokuho Kyodo Jigyo Legal Advisors of Joint Sponsors: Norden Law, Duan & Duan Law Firm Reporting Accountants and Auditors: Ernst & Young Industry Consultants: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Consultants: Zhongtai International Financing Corporation