New Stock Preview | Dual Listing Overlapping Performance Turnaround, Sino Medical Sciences Technology Inc. Welcomes Value Revaluation Opportunity?

Recently, according to the Hong Kong Stock Exchange, Sino Medical Sciences Technology Inc. has formally submitted its application for listing on the main board of the Hong Kong Stock Exchange, with Zhongyin International as the sole sponsor. This high-end interventional medical device manufacturer, which first debuted on the ChiNext board on October 30, 2019, is seeking a dual listing in both Hong Kong and mainland China to further expand its financing channels and enhance its international market influence. As of the close of trading on July 7, 2026, the company's A-share market value is approximately 7.4 billion RMB. Sino Medical Sciences Technology Inc. (688108.SH) ranks among the top in the domestic coronary intervention and neurointervention submarkets, and in recent years has turned its performance from loss to profit with rapid improvements in profitability. However, compared to many medical device peers already listed on the Hong Kong stock market, the company's annual revenue scale of around 500 million RMB is still relatively small. It is a "small and beautiful" enterprise focusing on cardiovascular intervention. Can Sino Medical Sciences Technology Inc.'s IPO story win the favor of international and institutional investors with the momentum of a dual listing in Hong Kong and mainland China? Bulk procurement + reduction in R&D, turning losses into profits Founded in 2007, Sino Medical Sciences Technology Inc. is a global enterprise specializing in interventional medical devices. The company is dedicated to providing clinically validated solutions with a focus on curing. After nearly twenty years of development, the company has established an integrated global operational layout covering strategic technological and new material exploration, research and development, manufacturing, and commercialization, with business operations in approximately 30 countries and regions. The company's product portfolio mainly includes coronary artery intervention (PCI) and neurovascular intervention (NVI), with 26 products commercialized to date, including 24 third-class medical devices. The company recorded revenues of approximately 343 million RMB, 459 million RMB, and 525 million RMB in 2023, 2024, and 2025 respectively, with a compound annual growth rate (CAGR) of 23.7%. In 2024, benefited from the renewal of the coronary stent bulk procurement, revenue increased by 33.6% year-on-year; in 2025, the growth rate slowed to 14.5%, entering a stable release period. The improvement in profitability is even more significant, with net profits of -43.4 million RMB, -3.889 million RMB, and 47.466 million RMB respectively in 2023, 2024, and 2025, achieving a substantial improvement in profits in 2025. In the first quarter of 2026, the momentum of profitability continued, with operating income reaching 140 million RMB, a year-on-year increase of 38.56%, significantly faster than the 14.5% growth for the full year in 2025; net profit attributable to shareholders was 24.46 million RMB, an increase of 723.85% year-on-year, already exceeding half of the net profit for the full year of 2025 within just one quarter; net cash flow from operating activities was 18.73 million RMB, a significant improvement from -2.94 million RMB in the same period last year, demonstrating improving operating quality. It is understood that the significant improvement in profitability is the result of a combination of "revenue increase" and "cost reduction". On the one hand, the increase in the proportion of high-margin products and the dilution of fixed costs due to economies of scale has driven the overall gross margin from 57.6% in 2023 to 65.6% in 2025, with the gross margin for neurointervention products reaching a high of 81.8%, becoming a key driver of profit quality; on the other hand, research and development expenses decreased from 141 million RMB in 2025 to 123 million RMB in 2025, a decrease of 12.8% year-on-year, and the research and development expense ratio from 33.24% to 23.33%, saving direct research and development expenses also contributed significantly to turning losses into profits. Public information shows that Sino Medical Sciences Technology Inc. has currently developed 11 core technology platforms and a global portfolio of intellectual property, with 230 granted patents, 58 patent applications, and three PCT patent applications. 48 articles covering topics from basic research to clinical research have been published in leading professional journals, with 29 articles published in international journals such as JAMA, Circulation, JACC, and EHJ, demonstrating strong technical reserves. However, the continued reduction in research and development investment may affect long-term competitiveness and requires continued observation. In addition, beneath the shining profit statement, there are some warning signals regarding the financial health. Trade accounts receivable in 2025 increased sharply from 7 million RMB in 2024 to 25 million RMB, a year-on-year increase of 236.4%, far exceeding the 14.5% revenue growth rate, and continued to rise to 27.97 million RMB in the first quarter of 2026, indicating a deterioration in receivables efficiency and raising concerns about the cash quality of profits; from 2023 to 2025, the current ratio decreased from 2.3 to 1.6, the quick ratio decreased from 1.5 to 1.3, and current liabilities increased by 118% to 334 million RMB from 2023, showing a significant weakening of short-term solvency. In this Hong Kong listing, although Sino Medical Sciences Technology Inc. stated in its official announcement that the core purpose of the Hong Kong listing is to "deepen the company's globalization development strategy and overseas business layout", the current status of its overseas business shows that, although the company's overseas revenue increased from 10.24 million to 29.37 million RMB from 2023 to 2025, the proportion of total revenue also steadily increased from 3.0% to 5.6%, it is still in the early stages of development and has not yet become a pillar of performance, neither in terms of absolute scale nor percentage. Can coronary products being selected for bulk procurement, can the neuro business become a new growth point? Both coronary heart disease and stroke are common cardiovascular diseases, and interventional medical devices are critical in hospitals' surgical capabilities and long-term high-value consumables procurement and domestic substitutions. In terms of disease burden, the global number of coronary artery disease patients has increased from 249.9 million in 2020 to 270.8 million in 2025, and is expected to reach 315.4 million by 2035; the Chinese market has increased from 17 million to 21.5 million, with an estimated 32.2 million by 2035. At the same time, the global number of surgeries for the three major neurovascular diseases (ICAS, hemorrhagic stroke, and AIS) has increased from 400,000 in 2020 to 800,000 in 2025, and is expected to reach 3.1 million by 2035, with compound growth rates of 16.0% and 14.0% respectively; the Chinese market has increased from 152,900 to 384,400, and is expected to reach 1.8 million by 2035, with compound growth rates of 20.3% and 16.7%, indicating broad potential for growth. It is understood that Sino Medical Sciences Technology Inc.'s products are mainly focused on coronary intervention and neuro intervention, with the former being used for percutaneous coronary intervention in patients with coronary heart disease, including drug-eluting stents, coronary balloons, atherectomy balloons, etc.; and the latter mainly for the treatment of stroke-related diseases, covering intracranial stents, intracranial balloons, clot retrieval stents, and mesh stents. In terms of business structure, coronary intervention is still the company's revenue foundation, with 58.8% of the company's 2025 revenue coming from coronary intervention, and neuro intervention accounting for 41%, with the coronary income ratio increasing by 12.4 percentage points compared to 46.4% in 2023, while the neuro business decreased from 52.7% to 41.0%. This change in revenue structure is mainly due to the explosive growth in sales of coronary products after being selected in the national bulk procurement. The company's core product, HT Supreme drug-eluting stent system, experienced a 1103.5% year-on-year increase in sales volume of the HT series in 2023 after the bulk procurement was renewed, with subsequent growth rates gradually decreasing to 49.2% and 14.4%. As the first Class III implantable medical device originating from China, HT Supreme has been approved for sale in China and Europe, becoming the first Chinese original Class III implantable medical device to receive pre-market approval from the U.S. FDA. According to Zhishi Consulting's report, in 2025 Sino Medical Sciences Technology Inc. ranked fourth in sales volume in the coronary DES field in China, with a market share of 10.4%, still significantly lower than the leading 27.6% market share. In contrast, although the neuro business currently contributes less to revenue than coronary intervention, its gross margin is as high as 81.8%, much higher than the 54.1% for coronary business. In the ICAS intracranial artery stenosis stent niche market, the company's market share calculated by sales volume is 41.0%, ranking first domestically. Sino Medical Sciences Technology Inc.'s neuro business products include the NOVA NEO intracranial drug-eluting stent (DES) system, the world's only intracranial drug-eluting stent; the Neuro LPS intracranial balloon expansion catheter, the world's first low-pressure intracranial balloon catheter; the AUCURA flow-guided coated mesh stent, China's first flow-guided stent compatible with a 0.017-inch microcatheter to enhance the distant passage and featuring an anti-thrombotic coated flow-guided stent; as well as the APEX TRA SYSTEM radial artery access guidance system, China's first commercially available dedicated radial artery remote access guidance catheter. In addition, the company has developed the COMETIU intracranial drug-eluting stent, the world's first self-expanding drug-eluting stent specifically developed for ICAS indications. In 2025, COMETIU received breakthrough medical device designation from the U.S. FDA, becoming the first ICAS treatment device to receive such designation globally. However, it is worth noting that the ICAS intracranial stent is just one subcategory in the neuro intervention market. In terms of the entire Chinese neurovascular intervention device market, Sino Medical Sciences Technology Inc.'s market share was only 3.0% in 2025, ranking sixth domestically, and not in an advantageous position. In addition, the registration application for the COMETIU stent received a rejection letter from the National Medical Products Administration in October 2025, and there are market rumors speculating that the core reason may be the completion of only 1-year follow-up on domestic clinical trials of the COMETIU stent, not meeting the regulatory requirement for "long-term data of 2 years or more for implantable devices". Therefore, the subsequent commercialization process may require more research and time costs. Overall, Sino Medical Sciences Technology Inc., through the surge in performance achieved after entering bulk procurement with its coronary business, has turned losses into profits, while the neuro intervention business has significant future growth prospects. However, the significant improvement in profitability to some extent depends on proactively reducing research and development expenses, the sustainability of which needs to be tested, and there is still uncertainty in the subsequent commercialization process of the neuro business. In the more stringent pricing logic of the Hong Kong stock market, whether Sino Medical Sciences Technology Inc. can be recognized with its "small and beautiful" scale, remains to be tested with time.