Guangdong Zhen Health Medical Technology Development Co., Ltd. (02697) will open its initial public offering for subscription from June 22 to June 25, 2026. The company plans a global offering of 3,564,700 H shares, comprising a Hong Kong public offering of 356,480 shares and an international offering of 3,208,220 shares, both subject to reallocation. The international offering is also subject to the exercise of an over-allotment option.
The offer price has been set within a range of HK$119.30 to HK$135.40 per share, with a board lot size of 20 shares. Trading on the main board of the Hong Kong Stock Exchange is expected to commence at 9:00 a.m. on June 30.
The global offering includes a 15% over-allotment option. If exercised in full, the company could issue up to an additional 534,700 H shares. Based on the mid-point of the offer price range at HK$127.40 per share and assuming the over-allotment option is not exercised, the company expects to raise net proceeds of approximately HK$388.1 million from the global offering.
Allocation of Proceeds
Approximately 74.5% of the net proceeds will be allocated to the research and development as well as commercialization of the company's core products. About 9.9% is earmarked for the development and commercialization of key products, while 6.0% will be used for the research of other candidate products and related patent applications and portfolio expansion. A further 2.0% is designated for expanding manufacturing capacity and enhancing production capabilities. The remaining 7.6% will serve as working capital and for other general corporate purposes.
Company Profile and Products
Established in 2018, Zhen Health Medical is primarily engaged in the research, development, and commercialization of robots for percutaneous puncture and ablation surgeries. It is recognized as the company with the earliest approvals and the highest number of approved products in this specialized segment.
The company's core products are percutaneous puncture surgical robots, which include four models: TH-S1, TH-S (designated as "domestically pioneered" by China's National Medical Products Administration), TH-S Pro, and TH-SA. All have obtained Class III medical device registration certificates and are approved for navigation and positioning in puncture surgeries for adult pulmonary and abdominal solid organs.
Beyond its core products, the company's pipeline includes the microwave ablation surgical robot TH-X MW (designated as "internationally pioneered" by the NMPA) approved for treating liver and lung tumors, the TH-X HMW approved for liver tumor treatment, as well as the TH-P series, MW150, TH-X Cryo, and ex-vivo organ preservation and assessment systems.
Market Position
According to data from CIC, Zhen Health Medical ranked first in China in terms of actual shipment volume in 2025 and also ranked first by revenue. Its market share by shipment volume and revenue was 36.4% and 28.0%, respectively.
The company has secured marketing authorization for 10 products (excluding consumables) and has established a customer base covering 23 key provinces in China. As of the latest practicable date, the company has partnered with 27 distributors within China and maintains an internal sales and marketing team of 51 people.
Public information indicates that the company's related products have been utilized in over 100 medical institutions, completing more than 7,200 surgical procedures.
Financial Performance
For the years 2024 and 2025, the company's revenue was RMB 1.791 million and RMB 12.178 million, respectively. Gross profit was RMB 1.310 million and RMB 9.294 million for the same periods. Research and development expenses were RMB 50.846 million and RMB 56.874 million.
The revenue growth in 2025 was primarily attributable to an increase in deliveries during the year, with a total of six systems delivered. These included two TH-S systems, one TH-P system, one TH-S Pro system, and two TH-X MW systems.
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