Recently, Sichuan Jinjiang Electronic Medical Equipment Technology Co., Ltd. (hereinafter referred to as "Jinjiang Electronics") submitted an IPO guidance filing application to the securities regulator.
This marks Jinjiang Electronics' second attempt to launch an IPO within three years. As early as June 2023, the company had aimed for a listing on the STAR Market but withdrew its IPO application after just one round of inquiries, leading to the termination of its IPO review.
Notably, CITIC Securities served as the sponsor for both of Jinjiang Electronics' IPO attempts. However, in a puzzling move, CITIC Securities stated in the IPO guidance materials that "Jinjiang Electronics has not experienced any termination, disapproval, or rejection of its initial public offering application in the past three years."
Industry practice dictates that if a company restarts its IPO within three years, the sponsor should clearly disclose its previous IPO attempts in the guidance materials. For instance, in another CITIC Securities-sponsored IPO project, Aike Medical Equipment (Beijing) Co., Ltd. (hereinafter referred to as "Aike Medical"), which also pursued a second IPO attempt, the guidance materials explicitly noted: "The company's listing application submitted to the Shanghai Stock Exchange STAR Market on April 20, 2023, was accepted. However, due to market changes, the company withdrew its application and received a termination notice from the exchange on April 11, 2024."
The discrepancy in disclosure has raised market concerns. Why did CITIC Securities, as the same sponsor, provide detailed records of Aike Medical's withdrawn IPO while omitting Jinjiang Electronics' terminated STAR Market IPO history in its guidance materials?
This inconsistency not only deviates from industry norms but also casts doubt on the accuracy of the guidance materials.
According to CITIC Securities' plan, Jinjiang Electronics is expected to complete its guidance phase by March or April next year, potentially taking the first step toward a formal IPO application.
Jinjiang Electronics specializes in electrophysiological 3D mapping systems, catheters, radiofrequency ablation devices, and related consumables. Its most innovative product is the Pulsed Field Ablation (PFA) system, which received approval from China's National Medical Products Administration (NMPA) in 2024, making it the first domestically approved PFA product in China.
PFA represents a significant breakthrough in ablation surgery. Current 3D systems typically use radiofrequency or cryoablation catheters, the mainstream surgical methods. However, these approaches lack tissue selectivity in ablation energy, often leading to complications such as thrombosis and pulmonary vein stenosis.
In contrast, PFA, which generates minimal heat, offers advantages like shorter treatment duration and faster ablation speed, ensuring precision while reducing damage to surrounding tissues and lowering complication risks.
However, the PFA market is becoming increasingly competitive. Since late 2024, multiple domestic medical device companies, including Apt Medical Inc. (688617.SH) and Aikemai, have also received approvals for their PFA products.
This growing competition may pose additional challenges to Jinjiang Electronics' PFA commercialization efforts.
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