Medical Device Maker Tianyi Medical Lists on Shenzhen Stock Exchange

Healthcare Author: Manyu Zhang Editor: Tao Ni Apr 10, 2022 10:31 AM (GMT+8)

The company takes this listing as an opportunity to increase its market share and become a domestic first-class medical device manufacturer

medical apparatus and instruments

Tianyi Medical (Chinese: 天益医疗, 301097.SZ) listed on the growth enterprise market (GEM) of the Shenzhen Stock Exchange on April 7. Its opening price was CNY 49.98 (USD 7.77), decreasing 4.56% from an issue price of CNY 52.37. 

Founded in 1998 and headquartered in Ningbo, Zhejiang Province, Tianyi Medical is a high-tech enterprise engaged in medical devices including medical polymer consumables in the fields of blood purification and ward nursing. 

At present, it has 28 patents, and its products are sold to 31 domestic provincial-level administrative regions and exported to Asia, Europe, North America, South America, Africa and other countries and regions.

According to the prospectus, from 2018 to 2020, Tianyi Medical's operating income was CNY 258 million, CNY 316 million and CNY 379 million respectively, with a CAGR of 21.2%; its net profit was CNY 44.578 million, CNY 63.204 million and CNY87.15 million, with a 39.82% CAGR. During the reporting period, its operating income and net profit both increased.

Tianyi Medical's prospectus reveals that its net profit attributable to parent company was CNY 78.292 million in 2021, decreasing CNY 8.858 million year on year. Tianyi Medical explains that with the epidemic gradually brought under control, the company's mask sales in 2021 dropped significantly, with a falling gross profit.

As of the prospectus signing date, Wu Zhimin, the controlling shareholder of the company, and his son Wu Bin are the actual controllers of the company. 

Before this issuance, Wu Zhimin directly held 28 million shares of the company, accounting for 63.33%. Wu Bin directly holds 12 million shares, with a 27.14% shareholding ratio. Zhang Wenyu, Wu Zhimin's nephew, the person acting in concert with the actual controller, directly holds 600,000 shares with a shareholding ratio of 1.36%. Wu Zhimin and Wu Bin held a 90.47% stake in Tianyi Medical and controlled 91.83% of the company.

Tianyi Medical closed 9.85% lower at CNY57.09 apiece Friday on the Shenzhen stock exchange, with a market value of CNY3.365 billion.