On January 29, 2024, Zhejiang Taimei Medical Technology Co., Ltd., Zhejiang Taimei Medical Technology Co., Ltd. (“Taimei Medical Technology” for short) from Jiaxing, Zhejiang submitted a prospectus on the Hong Kong Stock Exchange to go public for an IPO in Hong Kong.
Taimei Medical Technology submitted a listing application to the Science and Technology Innovation Board of the Shanghai Stock Exchange in December 2021, and the Shanghai Stock Exchange issued a letter terminating the A-share listing application on March 17, 2023.
Link to Taimei Medical's prospectus:
Main business
Taimei Medical Technology, founded in 2013, is a digital solution provider in the field of life science R&D and marketing in China. With digital collaboration platforms: TrialOS and PharmaOS, it mainly provides cloud-based software and digital services to promote customer life science R&D and marketing activities.
According to Insight Consulting, in terms of revenue in 2022, Taimei Medical Technology is the largest provider of digital solutions in the field of life science R&D and marketing in China.
Taimei Medical Technology is building a next-generation digital infrastructure to accelerate the development and marketing of life science products such as innovative drugs and medical devices. As of September 30, 2023, the company has provided services to more than 1,300 pharmaceutical companies and CROs, covering 21 of the world's top 25 pharmaceutical companies and 90 of the top 100 innovative Chinese pharmaceutical companies. According to Insight Consulting, based on the number of customers, Taimei Medical Technology has become the most widely used digital solution provider in life science R&D and marketing in China.
Cloud software provides SaaS products based on a subscription model that can be deployed flexibly and customized software to meet specific customer requirements. It is used in various scenarios, mainly including clinical research digitalization, SMO digitization, independent image reading, pharmacovigilance, and life science marketing. It promotes effective data interconnection between different software, thereby supporting the effective execution of life science R&D and marketing. Taimei Medical Technology's software can generally be divided into two categories: (i) life science R&D software to assist life science companies, clinical research institutions and CROs to conduct compliant and efficient clinical research; and (ii) life science marketing software to help life science companies effectively manage distributors and medical sales personnel to achieve transparent drug channel processes, clear customer insight, visual sales behavior, and accurate sales and marketing.
Digital services mainly include IRC services and digital clinical research services. Customers can utilize service personnel familiar with the company's software to meet their needs with consistent quality without additional staff expenses. IRC services mainly help life science companies conduct independent medical imaging evaluations. Digital clinical research services first promote digital SMO business management by providing integrated services related to training, management and supervision. At the same time, they also mainly provide digital clinical research and other services and achieve real-time risk warning by digitally disassembling and simplifying the quality, transparency, and efficiency of clinical research to achieve the goal of digital project management.
Other, in addition to mainstream business, others include providing customers with medical professional services such as training and conference scheduling services.
Shareholder structure
According to the prospectus, in the pre-listing shareholder structure of Taimei Medical Technology,
Mr. Zhao Lu holds 17.29% of the shares;
As an executive partner, Mr. Zhao Lu's seven employee shareholding platforms Shanghai Xiaoju, Shanghai Kunrui, Xinyu Haolin, Xinyu Seven Warriors, Xinyu Xingmeng, Soft Enterprise Management, and Xinyu Nuoming held 3.78%, 3.60%, 0.67%, 0.45%, 0.43% and 0.15% of the shares respectively, totaling about 11.67%;
Xinyu Deep Space (GP Mr. Zhao Lu 1%, Ms. Tang Lili 99%) holds 3.38% of the shares;
Zhoushan Yijin (GP Mr. Zhao Lu 5%, Ms. Tang Lili 5%), holds 1.00% of the shares;
Mr. Zhao Lu and Mrs. Tang Lili can control about 33.34% of the total shares held by the above shareholders.
Tencent (00700.HK) holds 10.43% of Tencent's shares through Linzhi;
Suzhou Tencent Phase I Investment Fund is Suzhou Paiyi, the largest limited partner, holding 1.63% of the shares;
Jingwei Venture Capital holds 9.38% and 0.65% of shares through Jingwei Chuangteng and Jingwei Chuangbo respectively;
Kaifeng Venture Capital holds 3.83%, 2.39%, 1.37%, 0.71%, 0.42%, and 0.12% of shares through Nanjing Kaiyuan, Nanjing Kaitai, Kaifeng Taimei, Kaifeng Zhide, Kaifeng Changyang, and Kaifeng Health, respectively;
Northern Light Venture Capital holds 3.77% and 2.15% shares through Northern Lights Zhengyuan and Northern Lights Hongyuan respectively;
Wuyuan Capital holds 3.84%, 0.75% and 0.59% of the shares through Wuyuan Chenxi, Wuyuan Chenyu, and Wuyuan Qixing respectively;
SoftBank China Capital holds 2.32%, 1.60%, and 0.18% of shares through Ningbo SoftBank, Chengdu SoftBank, and Jiaxing SoftBank respectively;
Saifu Investment Fund holds 3.20%, 0.22%, 0.22%, and 0.22% of shares through Suzhou Saifu, Shenzhen Saifu, Nanjing Saifu, and Huangshan Saifu respectively;
Zheshang Venture Capital (834089.NQ) holds 0.60% of the shares, and holds 2.80% of the shares and 0.36% of the shares through Hangzhou Yangjian and Hangzhou Qizhen respectively;
Jin Jiao Langqiu entities, including Jin Jiao Langqiu, Rising Sun Hsinchu, and Olympic Bond held 0.58%, 0.36%, and 2.63% of the shares respectively;
Gongqingcheng Yuanxi holds 2.83% of the shares;
Yunfeng Fund holds 2.38% of the shares through Yunfeng Rui;
Gao Wei, through Fuheng, Zhuhai, holds 2.38% of the shares;
Changzhou Ivy League holds 1.07% of the shares;
Mr. Li Shenjia holds 0.27% of the shares;
Ms. Jiang Wenxin holds 0.16% of the shares;
Kaichuang Keyuan holds 0.12% of the shares;
Gongqingcheng Jingqiong holds 0.12% of the shares;
Management
The board of directors of Taimei Medical Technology consists of 9 directors, including 6 executive directors (Mr. Zhao Lu, Mr. Ma Dong, Mr. Zhang Hongwei, Mr. Huang Yufei, Mr. Wan Bangxi, and Ms. Ni Xiaomei) and 3 independent non-executive directors (Dr. Jiang Xiao, Dr. Li Zhiguo, and Mr. Feng Zhiwei).
3 members of the Supervisory Board (Ms. Li Jiaona, Mr. Wen Gang, Mr. Lu Yiming).
In addition to the executive director, executives include Mr. Jiang Chengwen, Chief Financial Officer, and Mr. Lu Wei, Deputy General Manager.
Company performance
According to the prospectus, in the past nine months of 2021, 2022, and 2023, Taimei Medical Technology's operating income was 466 million yuan, 549 million yuan, and 410 million yuan respectively, with corresponding net losses of 480 million yuan, 423 million yuan and 269 million yuan respectively.
Intermediary team
Taimei Medical Technology's intermediary team for this IPO mainly includes: Morgan Stanley and CICC as co-sponsors; PricewaterhouseCoopers as its auditors; Jingtian Gongcheng and Mimax are the company's lawyers in Hong Kong and the US; Jingtian Gongcheng and Guo Hao are Chinese cybersecurity and data privacy protection lawyers; Zhong Lun and Colu are its lawyers in China; and lawyers from Hong Kong and the US; Insight Consulting is their industry advisors.