New Stock News | Tangji Medical submits application to the Hong Kong Stock Exchange again. Core product GBS has received regulatory approval in 11 other countries and regions.

According to the Hong Kong Stock Exchange's disclosure on August 28, Hangzhou Tangji Medical Technology Co., Ltd. (hereinafter referred to as Tangji Medical) submitted a listing application to the main board of the Hong Kong Stock Exchange, with ICBC International and Caitong International acting as its joint sponsors. As of the last practical date, the companys core product, the GBS, has received regulatory approval in 11 other countries and regions, including Hong Kong, Indonesia, Thailand, Vietnam, Saudi Arabia, Malaysia, Ecuador, Colombia, the Philippines, Singapore, and Brazil. Company Profile The prospectus shows that Tangji Medical is a medical device company based in China, focused on providing innovative solutions for the treatment and comprehensive management of metabolic diseases. As of the last practical date, the company has (i) one core product, the gastric bypass stent system (GBS), which is a device suitable for obesity that functions as a duodenojejunal bypass liner (DJBL) inserted through an endoscope, and the company is expanding the GBSs approved indications for those with a lower BMI; (ii) two other products and a digital health management platform that has already received regulatory approval; and (iii) an additional 13 pipeline products. By developing Chinas first approved medical device for endoscopic treatment of obesity, Tangji Medical has become a pioneer in the clinical application of metabolic diseases, offering innovative solutions in the treatment of these conditions, which differ from drug therapies and invasive weight-loss surgeries. Looking ahead, the companys vision is to bring clinical benefits to metabolic diseases through its minimally invasive technology, benefiting patients worldwide. The companys core product GBS is a MICROPORT device developed for the treatment of obesity. It is a flexible, recoverable sleeve liner placed via endoscopy that establishes an impermeable barrier between the gastric mucosa and the duodenum and proximal jejunum to reduce nutrient absorption and promote hormone regulation, thereby achieving weight loss. GBS is the worlds first commercially approved endoscopic medical device for treating obesity, receiving approval from the National Medical Products Administration in January 2024 as a Class III Innovative Medical Management device, making it Chinas first approved medical device for endoscopic treatment of obesity. The device has been approved through the Innovative Medical Management device special review procedure (green channel), highlighting its novel mechanism of action and significant clinical value. Additionally, Tangji Medical is actively advancing the global expansion of GBS. As of the last practical date, it has also obtained regulatory approval in 11 other countries and regions, including Hong Kong, Indonesia, Thailand, Vietnam, Saudi Arabia, Malaysia, Ecuador, Colombia, the Philippines, Singapore, and Brazil. Furthermore, the company is working on GBS registration in other regions, such as the European Union. Financial Information Revenue In the fiscal years of 2024, 2025, and the six months ending June 30, 2026, the company achieved revenues of approximately RMB 12.709 million, RMB 32.21 million, and RMB 23.69 million, respectively. Gross Profit and Gross Profit Margin In the fiscal years of 2024, 2025, and the six months ending June 30, 2026, the company recorded gross profits of approximately RMB 10.282 million, RMB 25.423 million, and RMB 20.11 million, corresponding to gross profit margins of 80.9%, 78.9%, and 84.9%, respectively. Losses for the Year/Period In the fiscal years of 2024, 2025, and the six months ending June 30, 2026, the company recorded losses of approximately RMB 65.957 million, RMB 88.33 million, and RMB 68.327 million. Industry Overview EBMT encompasses a range of minimally invasive gastrointestinal intervention techniques aimed at achieving clinically meaningful weight loss and metabolic improvement. These procedures are completed entirely via natural orifices using flexible endoscopic platforms, eliminating the need for surgical incisions. EBMT technology operates through established mechanisms, including gastric volume restriction, delayed gastric emptying, modulation of gut hormones such as GLP-1 and PYY, alteration of duodenal nutrient flow, and mucosal metabolic remodeling. Collectively, these pathways can reduce caloric intake, improve insulin sensitivity, and enhance metabolic control. At factory price levels, the global EBMT medical device market (including DJBL and other EBMT devices) is expected to experience a temporary decline before entering a rapid growth phase, decreasing from USD 162 million in 2024 to USD 148 million in 2025. The market is projected to expand to approximately USD 728 million by 2029, reach approximately USD 1.248 billion by 2030 (forecast), and further grow to approximately USD 4.662 billion by 2034 (forecast). The total EBMT medical device market is expected to grow at a compound annual growth rate (CAGR) of 53.1% from 2025 to 2030 (forecast) and 39.0% from 2030 (forecast) to 2034 (forecast). From 2025 to 2030 (forecast), DJBL and other EBMT devices are expected to grow at CAGRs of 159.8% and 37.8%, respectively; while from 2030 (forecast) to 2034 (forecast), they are expected to grow at CAGRs of 45.9% and 33.1%, respectively. The temporary decline in 2025 primarily reflects the fact that EBMT devices are still in the early stages of commercialization, as well as the short-term effects of the evolving paradigms of obesity treatment. Specifically, given the increasing global availability and pricing optimization of GLP-1 weight loss drugs such as semaglutide and tirzepatide, alongside the convenience of drug therapies compared to endoscopic interventions and their relatively high initial acceptance, some potential EBMT patient populations may be directed to drug treatments in the short term. Moreover, several leading global EBMT companies are expected to face revenue pressures and tighter financing conditions in 2025, leading them to implement cost control measures, make channel adjustments, and reduce sales and marketing investments, further slowing short-term commercialization efforts. While treatment pathways may gradually evolve towards a complementary model between drug therapies and EBMT devices (for example, using drugs for initial weight loss and device interventions for long-term weight maintenance and metabolic improvement), this combined treatment model is still in the clinical exploration and evidence accumulation stage in 2025 and has not yet been widely clinically applied. Looking ahead, benefiting from the rising prevalence of obesity and metabolic diseases, wider clinical adoption, accelerated product approvals, ongoing evidence accumulation, and enhancement of outpatient treatment capabilities, along with the recognition that EBMT devices can complement drug treatments and provide alternatives for patients who are unsuitable or unwilling to undergo weight-loss surgery, the global EBMT medical device market is expected to resume strong growth. The global DJBL medical device market is still in its early but rapidly expanding phase. At factory price levels, the market size is expected to grow from USD 1.8 million in 2024 to USD 4.5 million in 2025, and is projected to expand to USD 259.3 million by 2029 and reach USD 533.1 million by 2030 (forecast). From 2025 to 2030 (forecast), the global DJBL medical device market is expected to grow at a CAGR of 159.8%, reflecting the early launch phase of DJBL products and their rapid clinical adoption. The expected growth momentum is anticipated to continue from 2030 (forecast) to 2034 (forecast), with the market projected to reach USD 2.4175 billion by 2034 (forecast) and a CAGR of 45.9% during the period. This growth expectation will be driven by the rising prevalence of obesity and type 2 diabetes (T2DM), increased clinical acceptance of endoscopic metabolic therapies, timely regulatory approvals in major markets, and the gradual incorporation of DJBL devices into multidisciplinary obesity and metabolic disease management pathways. At factory price levels, China's EBMT medical device market (including DJBL and other EBMT devices) is expected to grow from RMB 130 million in 2024 to RMB 320 million in 2025, entering a rapid growth phase afterward. The market is projected to expand to RMB 7.81 billion by 2029, reach RMB 13.52 billion by 2030 (forecast), and further grow to RMB 41.55 billion by 2034 (forecast). The total market for EBMT medical devices in China is expected to grow at CAGRs of 111.1% from 2025 to 2030 (forecast) and 32.4% from 2030 (forecast) to 2034 (forecast). From 2025 to 2030 (forecast), DJBL and other EBMT devices are expected to grow at respective CAGRs of 100.1% and not applicable; while from 2030 (forecast) to 2034 (forecast), they are expected to grow at respective CAGRs of 28.9% and 42.2%. China's DJBL medical device market remains in its early but rapidly growing phase. At factory price levels, the market size is expected to grow from RMB 12.7 million in 2024 to RMB 32.2 million in 2025, projected to expand to RMB 628.3 million by 2029 and reach RMB 1.0335 billion by 2030 (forecast). From 2025 to 2030 (forecast), the Chinese DJBL medical device market is expected to grow at a CAGR of 100.1%, reflecting the early commercialization stage of DJBL products and their rapid clinical adoption in China. The expected growth momentum is anticipated to continue from 2030 (forecast) to 2034 (forecast), with the market projected to reach RMB 2.855 billion by 2034 (forecast), reflecting a CAGR of 28.9% during that period. This growth expectation will be facilitated by the rising prevalence of obesity and T2DM in China, enhanced clinical acceptance of endoscopic metabolic therapies, gradual expansion of product approvals within the country, improvements in outpatient endoscopic treatment capabilities, and the gradual integration of DJBL devices into multidisciplinary obesity and metabolic disease management pathways. Board of Directors Information The board of directors consists of six directors, including one executive director, two non-executive directors, and three independent non-executive directors. The term of the companys directors is three years and they are eligible for re-election. Shareholding Structure Mr. Zuo Yuxing holds 25.57%, Zhoushan Aizhong holds 6.16%, Dr. Xu holds 4.54%, Shanghai Fanghe holds 4.71%, Baidu Venture Capital holds 4.46%, Hong Li Ge Rui holds 4.20%, Hangzhou Bilin Star holds 1.31%, Hangzhou Gaoxin Materials Technology holds 6.02%, and other pre-IPO investors collectively hold 43.03%. As of the last practical date, Zhoushan Aizhong is a limited partnership established according to Chinese law, with Mr. Zuo as the general partner. Mr. Zuo holds approximately 12.64% of the limited partnership interest in Zhoushan Aizhong. Mr. Zuo is the largest limited partner of Zhoushan Aizhong. For the purposes of the Securities and Futures Ordinance, Mr. Zuo is considered to have an interest in the shares held by Zhoushan Aizhong. Intermediary Team Joint Sponsors: ICBC International Finance Limited, Caitong International Finance Limited Company Legal Advisors: Regarding Hong Kong and U.S. law: King & Wood Mallesons; regarding Chinese law: Jingtian & Gongcheng Law Firm Joint Sponsor Legal Advisors: Regarding Hong Kong law: Tian Yuan Law Firm (Limited Liability Partnership); regarding Chinese law: JunHe Law Firm Reporting Accountants and Independent Auditors: Ernst & Young Industry Advisor: Frost & Sullivan (Beijing) Consulting Co., Ltd. Branch in Shanghai Compliance Advisor: SOMERLEY CAPITAL LIMITED