Group Overview
The Group's OEM business (that is, based on the customer providing standard production customers or third party brand products for sale) manufactures various medical devices for customers, including respiratory products, contrast pressure injector disposable products, orthopedic support devices, rehabilitation devices, etc. However, in 2015, according to the enterprise management consultation report, the Group is the second largest OEM exporter of respiratory and anesthetic disposable products in China. In addition, the OBM Group develops, manufactures and sells respiratory equipment, disposable products, and orthopedic braces and rehabilitation devices under its own brand “Yingshi Medical”.
In 2015, according to the business plan, 87.3% of the Group's revenue came from OEM business, while 12.7% came from OBM business. According to regional plans, in 2015, the US contributed 83.9% of OEM business revenue, while China contributed 65.9% of OBM business revenue.
Industry Overview
According to the World Bank and Insight Business Management Advisory Report, total global health spending rose from approximately US$7016.9 billion in '11 to US$7612 billion in '15, with a compound annual growth rate of 2.1%.
According to in-depth corporate management consulting, global and Chinese medical device market sales volume (based on hospital purchase price) rose separately from 338.5 billion US dollars in 11 years to 431 billion US dollars in 15 years (compound annual growth rate of 6.2%), and from 135.4 billion yuan in 11 to 241.1 billion yuan in 15 years (compound annual growth rate of 15.5%).
Dangerous
The group's largest customer, “Bayer Group”, contributed 37.8%, 39.5%, and 36.0% of the group's operating value in '13, '14, and '15. If the relationship between the group and the customer were to end, it would have a significant adverse impact on the group's business and operating value.
valuations
According to the prospectus, as of March 8, 2016, calculated on the basis of 638 million shares expected to be issued immediately after the completion of the share sale, the net tangible assets range to be held by shareholders was HK$230 million to HK$262 million, equivalent to the unaudited and adjusted net tangible assets range of HK$230 million to HK$262 million, equivalent to unaudited notes that the adjusted net worth range of tangible assets per share was HK$0.36 to HK$0.41 million.