Tianxing Medical's transition to the Hong Kong Stock Exchange and the broker change: A few months ago, due to the sponsor's application for "passive withdrawal"

Recently, Beijing Tianxing Medical Co., Ltd. (hereinafter referred to as "Tianxing Medical") submitted an IPO application to the Hong Kong Stock Exchange.

This comes less than three months after Tianxing Medical's failed IPO on the Sci-Tech Innovation Board in June this year, attracting market attention.

In its Hong Kong prospectus, Tianxing Medical stated: "Considering the market conditions at that time and the long approval time required for the Sci-Tech Innovation Board listing application, the application for the Sci-Tech Innovation Board was withdrawn in June 2025."

It is worth noting that during the termination process of the previous IPO, Tianxing Medical did not actively withdraw its application.

The Shanghai Stock Exchange's official website shows that the direct reason for the termination of Tianxing Medical's Sci-Tech Innovation Board IPO review was the unilateral withdrawal of the application by the sponsor, CICC.

In this regard, a person close to Tianxing Medical confirmed to Xinfeng that the company and the sponsor could not reach an agreement, and the sponsor proactively withdrew the company's IPO application.

In fact, unilateral withdrawals by sponsors are not uncommon. For example, in January this year, Dongfang Securities unilaterally withdrew the main board IPO application of Ningbo Zhongchun High-Tech Co., Ltd.

"This situation is becoming more and more common. If the sponsor and the issuer cannot reach an agreement, the sponsor will withdraw the issuer's IPO application and revoke its sponsorship, which is also to fulfill the role of a 'gatekeeper,'" a private equity person from the south told Xinfeng.

For this Hong Kong listing, Tianxing Medical has reappointed CITIC Securities and Jianyin International as joint sponsors.

Tianxing Medical focuses on sports medicine, with products including implants, active devices, consumables, and surgical tools. In 2024, revenue and net profit attributable to the parent company are expected to be 327 million yuan and 95 million yuan, respectively, representing year-on-year growth of 37.13% and 67.02%.

Among these, implants such as anchor nails used for soft tissue repair are the main source of income for Tianxing Medical, generating 270 million yuan in 2024, accounting for over 70%.

This is the result of Tianxing Medical participating in centralized procurement to "exchange price for volume."

In 2024, the sales volume of Tianxing Medical's implants reached 560,000 units, more than doubling year-on-year. However, prices experienced a cliff-like drop, with the unit price plummeting from 712 yuan/unit in 2023 to 446 yuan/unit, a nearly 40% year-on-year decline.

Despite this, Tianxing Medical's product gross margin remains quite impressive, with the gross margin for implants reaching 72.4% in 2024, only down 6.6 percentage points year-on-year.

As Tianxing Medical makes a second attempt at an IPO, whether it can successfully knock on the door of the Hong Kong Stock Exchange is highly anticipated.

Risk Warning and Disclaimer

The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at one's own risk