On September 24, according to information disclosed by the Shanghai Stock Exchange, because Shanghai Huihe Medical Technology Co., Ltd. and its sponsors Soochow Securities Co., Ltd. and Guotai Haitong Securities Co., Ltd. withdrew their issuance and listing applications, the SSE terminated the review of its initial public offering and listing on the STAR Market in accordance with the relevant provisions of Article 63 of the Shanghai Stock Exchange Rules for the Review of Stock Issuance and Listing.
Under the company's original plan, it intended to raise 1.11 billion yuan for a production center, new product development, overseas clinical work, and replenishment of working capital. However, the company also emphasized that if product sales fall short of expectations after listing and R&D investment remains persistently high, it may still be unable to become profitable in the short term, which could in turn trigger delisting conditions.
It is worth noting that in the list of 21 companies selected in the fourth batch of on-site inspections of IPO applicants in 2026 announced by the Securities Association of China on July 1, Huihe Medical was included. Huihe Medical is mainly engaged in the R&D, production, and sales of innovative medical devices in the pan-vascular intervention field. In the heart valve disease track, the company pioneered a globally innovative annuloplasty technique, and its core product developed based on this technology, the transcatheter tricuspid annuloplasty system K-Clip®, passed the special review under China's "green channel" for innovative medical devices and was approved for market launch by the NMPA in March 2025.
From the timeline, on June 30, Huihe Medical's STAR Market IPO prospectus was accepted, and it planned to adopt the fifth set of listing standards. Financial data show that from 2023 to 2025 (the reporting period), the company's revenue was 2.8037 million yuan, 26.9882 million yuan, and 102 million yuan, respectively; net profit attributable to the parent company was -201 million yuan, -190 million yuan, and -219 million yuan, respectively. As of the end of the reporting period, the company's accumulated unrecovered losses were approximately 738 million yuan. Net cash flow from operating activities was -98.046 million yuan, -73.9687 million yuan, and -55.3829 million yuan, respectively, remaining negative for three consecutive years. During the reporting period, the company's R&D expenses were 134 million yuan, 108 million yuan, and 90 million yuan, respectively, with cumulative R&D investment exceeding 330 million yuan over the three years; share-based payment expenses recognized for equity incentives were 70.6073 million yuan, 79.309 million yuan, and 170 million yuan, respectively.
Huihe Medical stated that the company's continued losses were mainly affected by the above-mentioned high R&D expenses and share-based payments. In addition, Huihe Medical stated that at the current stage the company will continue to invest in R&D around the heart valve field and maintain a high level of R&D intensity to match market competition needs. At the same time, the company's independently developed core product, the transcatheter tricuspid annuloplasty system K-Clip®, is still in the early commercialization stage and still requires substantial investment in market promotion and clinical education.
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