Zheshang Taimei Medical Science and Technology Co., Ltd. (referred to as Taimei Medical Science and Technology) submitted its second application for listing on the main board of the HKEX, with China International Capital Corporation and Morgan Stanley as its joint sponsors, according to the news from Zhitong Finance and Economics APP on July 30. It is reported that the company submitted its application for IPO to the STAR Market of the Shanghai Stock Exchange in December 2021 and received a letter of termination of IPO of A shares from the Shanghai Stock Exchange on March 17, 2023. On January 29, 2024, it submitted a prospectus for the first time to the HKEX and plans to go public in Hong Kong IPO.

According to the prospectus, as a digital solution provider dedicated to the medical science industry in China, Taimei Medical Technology designs and provides industry-specific software and digital services to accelerate the research and development (R&D) and marketing of medical science products such as innovative drugs and medical instruments.

The software provided by Taimei Medical Science and Technology is based on the cloud, allowing users to access it anytime and anywhere through various devices via the Internet without the need to install and maintain software on their own devices. In addition to software, the company also provides a range of digital services, primarily involving image assessment, trial design and management, and data collection and analysis. During the reporting period, cloud software revenue accounted for 42.3%, 38.4%, 35.2%, and 34.3% of total revenue in 2021, 2022, 2023, and the three months ended March 31, 2024, respectively. Meanwhile, digital services revenue accounted for 57.6%, 61.6%, 64.5%, and 65.7% of total revenue during the same period.

Taimei Medical Science and Technology's cloud software and digital services are mainly provided through its two digital collaboration platforms (TrialOS and PharmaOS). The company's digital collaboration platforms play a pivotal role in connecting all parties in the medical science industry chain, including pharmaceutical and medical device companies, hospitals, third-party service providers, patients, and regulatory agencies. According to Zhushi Consultancy's data, Taimei Medical Science and Technology is the only domestic supplier that can provide a one-stop digital solution from R&D to marketing for the Chinese medical science industry.

In addition, Taimei Medical Science and Technology is also developing the next generation of digital collaboration platforms, including Trials and Wu Jie. Trials are designed specifically for medical science research and development, and are currently being further developed to add more functional modules and are expected to be launched at the end of 2024. To adjust and enhance PharmaOS's medical science marketing capabilities, Taimei Medical Science and Technology has developed another new generation platform called Wu Jie. Wu Jie was launched in the second half of 2023 and provides more external services to doctors through online and offline channels.

Its customers mainly include medical science companies such as pharmaceutical and medical device companies, as well as third-party service providers and clinical research institutions such as Contract Research Organization (CRO). The number of Taimei Medical Science and Technology's customers increased from 908 in 2021 to 1033 in 2022, and further increased to 1107 in 2023, with 896 and 870 as of March 31, 2023 and 2024, respectively.

Thanks to the emergence of SaaS products, the digital threshold for medical science companies has been lowered, and the demand for digitalization in the medical science industry has surged. The combination of cloud software and digital services creates commercial value for the R&D and marketing of the Chinese medical science industry. It is expected that by 2028, the market for digital solutions for research and development and marketing in China's medical science industry will reach RMB 24.3 billion, with a compound annual growth rate of 20.2% from 2023 to 2028.

The market for digital solutions for research and development and marketing in China's medical science industry, in which Taimei Medical Science and Technology operates, is highly fragmented, with the top five participants accounting for 23.1% of the market share based on revenue in 2023. According to Zhushi Consultancy's data, the company ranked first in the market with a market share of 5.9% based on the same indicator in 2023. According to Zhushi Consultancy's data, Taimei Medical Science and Technology is also the largest supplier of digital solutions for medical science research and development in China, with a market share of 8.2% of revenue in 2023.

Financially, as of March 31, 2021, 2022, 2023, and 2024, the company has achieved revenue of approximately RMB 0.466 billion, 0.549 billion, 0.573 billion, and 0.132 billion, respectively. During the same period, the annual losses were approximately RMB 0.48 billion, 0.423 billion, 0.356 billion and 0.118 billion, respectively.

According to the prospectus of Taimei Medical Technology, the company cannot guarantee that its monetization strategy or business initiatives will be successfully implemented or generate sustainable revenue and profits. During the reporting period, most of the company's revenue came from providing cloud software and digital services to medical science companies, third-party service providers (such as CROs), clinical research institutions, and others. Therefore, the company's business may heavily depend on its ability to retain existing and attract new customers in the medical science industry, especially its ability to create numerous platform-enabled medical science research and marketing solutions to meet the broad business needs of its clients. If Taimei Medical Technology cannot retain existing customers and attract new ones, the company's business, operational performance, financial situation and prospects will be significantly adversely affected.