Cofoe Medical Technology Co., Ltd. (referred to as "Cofoe Medical"), which grew from a retail store in Yiyang, Hunan to become a leading home medical device company owning the "Beibei Jia" brand, has recently passed the Hong Kong Stock Exchange IPO hearing. The company is now advancing toward a dual capital platform with listings in both A-shares and H-shares, with Huatai International and BNP Paribas acting as joint sponsors.
Cofoe Medical is already one of China's largest home medical device enterprises. According to data from Frost & Sullivan cited by the company, based on 2024 domestic revenue, Cofoe Medical ranks second among all home medical device companies in China, holding a market share of 2.1%.
The posture-correction product "Beibei Jia" contributes 500 million yuan in annual revenue.
Cofoe Medical began operations in 2007, focusing on the home medical device sector and strategically developing five major product categories: rehabilitation aids, medical care products, health monitoring devices, respiratory support equipment, and traditional Chinese medicine physiotherapy and other products. According to company disclosures, in 2024, Cofoe Medical held the top position in China's home rehabilitation aids market.
Financially, from 2023 to 2025, Cofoe Medical achieved revenues of 2.854 billion yuan, 2.983 billion yuan, and 3.388 billion yuan, respectively. Corresponding gross profits were 1.173 billion yuan, 1.509 billion yuan, and 1.752 billion yuan, while net profits for the periods were 253 million yuan, 312 million yuan, and 370 million yuan.
Breaking down the revenue structure, rehabilitation aid products consistently form the core revenue pillar for Cofoe Medical. In 2025, this category generated revenue of 1.178 billion yuan, accounting for 34.8% of total revenue, consistent with the proportion in 2024. Revenue from medical care products was 730 million yuan, with its share decreasing from 26.1% in 2024 to 21.6% in 2025. Health monitoring and respiratory support products accounted for 16.4% and 7.7% of revenue, respectively.
Notably, within its portfolio of proprietary brands, Cofoe Medical holds several brands targeting specific verticals. Among these, "Beibei Jia" enjoys the highest public recognition. Other brands include "Jian Er Ting Li," focused on hearing aids and related services; "Ji Rui Medical," specializing in wheelchairs; and "Hua Zhou," which primarily deals with medical dressings and related products.
In Cofoe Medical's business landscape, "Beibei Jia" was acquired through a purchase. The prospectus indicates that the "Beibei Jia" brand was established in 1997 and was one of the earliest brands in China dedicated to posture health management. In April 2022, Cofoe Medical used its own funds to acquire 100% equity of Oak Trade and related intellectual property associated with "Beibei Jia" for 177 million yuan. At the time, this acquisition was viewed skeptically by the market, with many considering "Beibei Jia" outdated and questioning the rationale behind the newly listed Cofoe Medical's decision to acquire it.
Cofoe Medical stated in its prospectus that after the acquisition, it implemented a strategic repositioning for "Beibei Jia," transforming it into a "posture management expert" focusing on both scientific shaping and health aesthetics. This move successfully broadened public awareness of posture-correction products, making more people across different ages and professions recognize the need for posture improvement and fostering a positive perception of the functionality and quality of "Beibei Jia" products.
In terms of data, "Beibei Jia" achieved annual revenue of 500 million yuan in 2024. Based on revenue, Cofoe Medical ranks first in China's posture-correction belt market, with a market share significantly exceeding that of the second-place competitor, which holds 8.5%.
Regarding market presence, mainland China remains the core source of revenue for Cofoe Medical, while the company's sales also extensively cover regions including Hong Kong, the United States, and the United Kingdom. From 2023 to 2025, the proportion of overseas sales revenue for Cofoe Medical increased year by year, reaching 1.7%, 2.0%, and 8.8%, respectively.
As of December 31, 2025, Cofoe Medical operated four major production bases in China to ensure self-supply of core products. Additionally, the company employs OEM/ODM partnerships, outsourcing the production of some proprietary brand medical products with relatively simpler technical specifications and processes to balance capacity and production efficiency.
Sales and distribution expenses as a proportion of revenue have been expanding annually.
The cost structure in the home medical device industry primarily includes raw materials, procurement, labor, marketing, and R&D. Within Cofoe Medical's cost structure, marketing expenditure holds significant weight, with a substantial portion directed toward online platforms and digital marketing.
Data shows that both the scale and proportion of Cofoe Medical's sales and distribution expenses have been increasing yearly, consistently impacting the company's overall operating performance. From 2023 to 2025, sales and distribution expenses were 741 million yuan, 973 million yuan, and 1.158 billion yuan, accounting for 26.0%, 32.6%, and 34.2% of total revenue for the respective periods.
This growing expenditure represents a double-edged sword for Cofoe Medical. The company acknowledges in its prospectus that "the effectiveness of our sales and marketing activities is crucial to our financial performance, and sales and distribution expenses have already affected our results." Regarding marketing costs, Cofoe Medical stated it is improving the efficiency of online marketing expenditures by continuously monitoring the return on investment for online advertising and optimizing placement strategies. Failure to effectively manage these expenses could negatively impact the company's profitability.
The intensely competitive industry landscape is likely an external factor driving Cofoe Medical's increased marketing investment. According to Frost & Sullivan data, the home rehabilitation aids and home medical care product sectors in which Cofoe Medical operates are highly competitive, each with over 300 market participants in China. The home respiratory support product market in China also has nearly 100 participants. Cofoe Medical faces potential competition from new entrants or existing rivals launching low-cost or innovative alternative products, which could further exert downward pressure on prices and profit margins.
In stark contrast to the rising marketing expenses, Cofoe Medical's R&D spending has shrunk for three consecutive years, with a cumulative decrease of nearly 24%, raising external concerns. Data indicates that in 2024, R&D costs decreased from 114 million yuan in 2023 to 96.4 million yuan, a year-on-year drop of 15.7%. In 2025, R&D costs further declined to 87.3 million yuan, a reduction of 9.1 million yuan from 2024, representing a 9.5% decrease.
Cofoe Medical explained that the reduction in R&D expenditure is primarily due to the ongoing optimization of the R&D project portfolio, concentration of resources on specific products, and the capitalization of some R&D projects in 2024 and 2025 as they reached more mature stages.
The controlling shareholder couple holds over 50% of the voting rights.
The origins of Cofoe Medical trace back to 2007. At that time, the couple Zhang Min and Nie Juan established Hunan Good Nurse Medical Device Chain Operation Co., Ltd. in Yiyang, Hunan, formally entering the offline retail sector for home medical devices. In 2009, the company's predecessor, Hunan Cofoe Medical Technology Development Co., Ltd., was established, adopting "Cofoe" as its proprietary brand for home medical devices. In December 2019, the company was restructured into a joint-stock company and renamed Cofoe Medical Technology Co., Ltd. In 2021, Cofoe Medical was listed on the Shenzhen Stock Exchange's ChiNext board, with stock code 301087.SZ. As of the close on April 13, Cofoe Medical's share price was 52.8 yuan per share, down 6.47%, with a total market capitalization of 11.03 billion yuan.
As the company's leader, 47-year-old Zhang Min serves as Executive Director, Chairman, and President of Cofoe Medical, responsible for overall management and operations. Public information shows that Zhang Min began entrepreneurial ventures during his university studies, initially gaining experience through medical device product agency. The prospectus indicates that Zhang Min possesses over 20 years of experience in key areas such as product development, IP development and management, sales, and marketing within the home medical industry.
Zhang Zhiming, Vice Chairman of Cofoe Medical, is the same age as Zhang Min. The prospectus states that he has extensive experience in supply chain, production and logistics, sales, and personnel management related to home medical devices. Before joining Cofoe Medical, he served as a government official in Meicheng Town, Anhua County, Yiyang City, Hunan Province, from March 2004 to June 2007.
Regarding the shareholding structure, prior to this Hong Kong IPO, Zhang Min directly holds 5.8% of shares, and his spouse Nie Juan holds 1.67%. Changsha XIEZIHAO Medical Investment Co., Ltd. holds 40.73%, and Changsha Keyuan Tongchuang Venture Capital Partnership holds 5.8%. Within these entities, Zhang Min holds a 90% stake in Changsha XIEZIHAO, with Nie Juan holding 10%. Additionally, Zhang Min is the executive partner of Changsha Keyuan Tongchuang, holding a 5% partnership interest, while Nie Juan, as a limited partner, holds a 55% interest. As of the last practicable date, the couple and these two major holding platforms collectively control approximately 54% of the company's voting rights.
The prospectus highlights that the controlling shareholders exert significant influence over the company's business, including matters related to operations management, mergers and acquisitions, expansion plans, policies and decisions concerning mergers and the sale of all or substantial assets, the election of directors, and other major corporate actions. It also notes the possibility that their interests may not always align with those of other shareholders.
This marks Cofoe Medical's second attempt to list in Hong Kong. Regarding the use of proceeds from the Hong Kong IPO, the prospectus mentions they will be primarily allocated towards global market expansion, product R&D and technological innovation (including AI and IoT applications), expansion of domestic sales channels and distributor networks, brand promotion and marketing activities, as well as for working capital and general corporate purposes.
Comments