Financial Associates News, June 28 (Editor Zhou Xinyang) Shandong Weigao Blood Purification Products Co., Ltd. submitted a prospectus to the Hong Kong Stock Exchange on June 27.
Citi, Huatai International and China Renaissance as lead underwriters
According to the prospectus, the company is in a leading position in all major tracks in the field of blood purification, leading domestic alternatives.In 2021, Weigao's dialyzer sales market share is 32.4%, ranking first in China, and blood pipeline sales market share is 32.6%, ranking first in China and far exceeding the second place, and it is exclusively sold in China. The sales of hemodialysis machines accounted for 22.1% of the total domestic sales of hemodialysis machines, ranking second in China and first among domestic manufacturers.
According to Tianyancha data, 28% of Shandong Weigao Blood Purification belongs to Weigao (01066.HK), a Hong Kong-listed company.
The prospectus disclosed that China's blood purification market has a huge base, rapid growth and huge growth potential.The number of patients with end-stage renal disease (ESRD) in China is huge, reaching 3.59 million in 2021.According to Frost & Sullivan, the number of ESRD patients in China is expected to reach 5.44 million in 2026.The number of ESRD patients treated in China is relatively low, at 526/million in 2019, far lower than 2465/million in the United States and 2696/million in Japan.ESRD patients usually require lifelong treatment, and there are long-term and persistent chronic disease management needs.Blood purification is the main treatment for ESRD, which mainly includes hemodialysis and peritoneal dialysis.
Weigao Blood said that under its promotion, the market share of domestic brands in the dialyzer and blood pipeline markets will reach 45.0% and 67.6% respectively in 2021.The market share of domestic brands of dialysis machines and peritoneal dialysis fluid is relatively low. In 2021, the market share of domestic brands in the field of hemodialysis machines and peritoneal dialysis fluid will both be less than 25%, and the wave of localization in this field will be promoted through cooperation with international giants.
The figure below shows the revenue breakdown by product type. Weigao Blood provides ESRD patients with comprehensive blood purification products, including hemodialysis products such as dialyzers, dialysis machines, blood pipelines, and peritoneal dialysis products.
As of the Latest Practicable Date, the Company has approximately 80 product candidates in the blood purification and life support and biopharmaceutical membrane markets, of which 20 have entered various stages of clinical trials.
The blood purification industry is strictly regulated
The main risks disclosed by Weigao Blood are that the blood purification industry is strictly regulated in China and other jurisdictions, and any changes in laws and regulations may restrict or prevent the company's business and increase compliance costs; the company faces fierce competition from domestic and foreign competitors. competition, the company may not be able to maintain or increase its market share in the industry;
Regarding the fund-raising proceeds after listing, Weigao Blood said that it will consolidate its market position in hemodialysis medical equipment and expand the peritoneal dialysis market; strengthen its research and development capabilities with the biomedical membrane technology platform as its core; continue to enhance brand influence and market penetration; expand production capacity; and further promote the internationalization of R&D, production and marketing.
During the track record period, the company's revenue achieved a compound annual growth rate of 15.7%, but the profit fluctuated. In 2019, 2020 and 2021, the revenue was 2.2022 billion, 2.5648 billion and 2.9476 billion respectively; the profit for the year was 196 million, 308 million, 269 million.
