"Little Mairui" McCarten's Second Attempt at Hong Kong Listing: Acquisitions Stack Up 8.2 Billion Valuation, Goodwill Takes Up Half of Net Assets, 80% of Revenue Tied to Distributors | IPO Watch

Source: Titanium Media

In the IPO queue outside the Hong Kong Stock Exchange, Shenzhen Maike Tian Biomedical Technology Co., Ltd. (hereinafter referred to as “Maike Tian”) is a familiar face.

On March 11, Maike Tian once again submitted an application for listing on the Main Board of the Hong Kong Stock Exchange, with Morgan Stanley and Huatai International continuing as joint sponsors. This is exactly six months after its initial filing in September 2022, coinciding with the expiration of the previous prospectus.

This time, Maike Tian not only updated its full-year financial data for 2025 but also received approval from the China Securities Regulatory Commission for overseas listing. The company plans to issue no more than 191.5 million H-shares and has also launched a “full circulation” of over 440 million unlisted domestic shares.

Led by the “Mindray alumni” entrepreneurial team and with Hillhouse Capital holding over 20%, this medical device company achieved a turnaround from loss to profit in 2025, seemingly on a healthy growth track. However, behind its shiny performance, there are underlying concerns: goodwill nearly half of net assets, over 80% of revenue relying on channel outsourcing, coupled with turbulent distributor networks, all testing its long-term resilience.

Seven years of fundraising totaling 2.259 billion yuan, with acquisitions supporting an estimated valuation of 8.2 billion yuan

Looking back at Maike Tian’s growth history is also a story of mergers and acquisitions.

Founded in 2011, Maike Tian’s core management team can be considered a “Mindray alumni group.” Chairman Liu Jie previously served as COO of Mindray Medical, responsible for financial planning, sales, marketing, and core operations; Vice Chairman Zhong Yaoqi was a senior vice president of international sales and marketing at Mindray, leading international expansion and M&A strategies.

Among the seven senior managers disclosed, five have experience at Mindray Medical, accounting for over 70%, laying a resource foundation for subsequent industry expansion and M&A integration.

The shareholder lineup behind Maike Tian also draws market attention.

Since 2016, the company has maintained roughly one fundraising round per year, completing a total of 10 rounds (including equity transfers, share subscriptions, and swaps) over seven years, raising a total of 2.259 billion yuan.

The investors are notable. Hillhouse Capital holds a total of 20.79%, becoming the largest external shareholder; Shenzhen Innovation Investment Group owns 8.54%; Hanshi and Suzhou Lirui hold 3.3% and 2.75%, respectively; leading institutions like SME Fund, Linghui Cornerstone, and Gotech Jingshi are also investors.

Continuous capital injection has become Maike Tian’s “ammunition depot” for M&A expansion. Since 2017, the company has rapidly built up three core business segments—life support, minimally invasive intervention, and in vitro diagnostics—through a series of acquisitions.

In 2017, Maike Tian acquired a 65% stake in Runpu Biotechnology, entering the coagulation testing field; in 2020, it acquired 51% of Shengke Yuan, completing its molecular diagnostics layout. In March 2021, it further acquired the remaining shares of Runpu Biotechnology and Shengke Yuan, both becoming wholly owned subsidiaries.

2022 was a busy year: first acquiring the UK-based Penlon Group, bringing anesthesia and respiratory solutions into its portfolio and gaining entry into the global anesthesia market; then acquiring Jiangsu Weidekang Medical to enter the endoscopy consumables field and the minimally invasive intervention sector.

By September 2025, Maike Tian acquired Guoke Meirunda Medical, expanding from flexible to rigid endoscopes, and also acquired Belgian medical device distributor Vedefar.

In its IPO prospectus, Maike Tian states that strategic acquisitions are one of the core methods for business growth. By integrating cross-departmental and multi-scenario product portfolios, it can quickly expand domestic and international market coverage.

By the end of 2025, the company’s commercial products totaled 330, including 60 life support products, 110 minimally invasive intervention products, and 160 in vitro diagnostic products, covering over 140 countries and regions worldwide, with overseas revenue accounting for 48%. Domestically, products have been adopted by over 6,000 hospitals, about 90% of which are tertiary hospitals, and more than 40 pipeline products are under development.

After the share subscription was completed in 2023, Maike Tian’s post-investment valuation rose to 8.245 billion yuan, about 24.77 times the 320 million yuan valuation in its Series A funding in 2016, reflecting strong market recognition of its M&A and integration strategy.

It is also noteworthy that between 2023 and 2024, Maike Tian completed two rounds of share transfers. In 2023, share transfers brought in 161 million yuan; in 2024, they brought in 89.96 million yuan. Since both rounds involved transfer of existing shares, this indirectly indicates that the company’s valuation remained above 8 billion yuan, with no significant fluctuations.

Accumulating risks from M&A integration, the dual aspects behind the turnaround

The 2025 profit figures give Maike Tian confidence to re-enter the Hong Kong stock market, but a closer look at the financial data reveals a clear duality: behind growth are multiple risks.

Aspect A is the continuous improvement in revenue and profitability.

From 2023 to 2025, revenue increased from 1.313 billion yuan to 1.619 billion yuan, a 15.71% year-over-year growth in 2025. Gross margin steadily rose from 49.6% in 2023 to 53.7% in 2025, reflecting product mix optimization and cost control.

The most critical breakthrough is in profitability. From 2022 to 2024, the company accumulated a net loss of 387 million yuan, but the loss narrowed each year. In 2025, it achieved a net profit of 50.73 million yuan, with an adjusted net profit of 129 million yuan, and a net profit margin of 3.13%, officially ending its continuous loss streak.

Aspect B signals risks that cannot be ignored. The “double-edged sword” of M&A integration is gradually revealing its pressures.

First is the high level of goodwill risk. By the end of 2025, goodwill from acquisitions of Penlon, Jiangsu Weidekang, and Vedefar totaled 928 million yuan, accounting for 49.47% of the company’s net assets of 1.876 billion yuan that year. Nearly half of the net assets. Among these, the goodwill from the acquisition of Weidekang alone is 914 million yuan, making it the main contributor to total goodwill.

Although Maike Tian employs a “gradual integration” strategy and the gross margins of Penlon and Weidekang have steadily improved in recent years, risks remain.

In 2025, Penlon’s revenue decreased by 16.41% year-over-year, falling below 2023 levels; meanwhile, minimally invasive intervention has become its largest revenue source, accounting for 50% in 2025. If future growth slows or profitability declines, it could trigger significant goodwill impairment, eroding profits.

Second is the high dependence on distributors and channel turbulence. From 2023 to 2025, revenue from distributors accounted for 87.8%, 84.3%, and 83.1%, respectively—over 80% reliance on outsourced channels.

While this model enables asset-light expansion, it also harbors long-term risks. Wu Gaobin, Secretary-General of the China Communication Industry Association and Vice President of the Integration Committee of the China Communications Industry Association, pointed out that over-reliance on distributors may weaken pricing power, squeeze profit margins, extend receivables, and increase cash flow volatility; in the face of policies like volume-based procurement, slow channel adjustments can weaken risk resistance.

Looking at distributor data, the total number of domestic distributors in 2025 remained at 2,773, but over half—1,514—became inactive. Overseas, the number remained relatively stable, with about 500 distributors lost annually; only the acquisition of Belgian distributor Vedefar in 2025 helped fill the gap.

The high attrition rate of distributors indicates declining channel coverage and efficiency, which is a critical issue for Maike Tian, heavily reliant on distributor networks.

The IPO prospectus also clearly states the risks: due to high dependence on distributors for sales and channel management, and given their key role in hospital bidding processes, any reduction, delay, or cancellation of orders, failure to renew or maintain good relationships, or inability to find replacements after distributor loss, could cause significant fluctuations or declines in revenue and growth sustainability, adversely affecting operations, financial health, and performance. Moreover, if distributor performance declines overall, it would directly impair the operation of the distribution network, further dragging down company performance.

More concerning is that profit growth relies increasingly on cost reductions. In 2025, sales and marketing expenses dropped from 25% of revenue in 2023 to 21.8%, R&D expenses from 21.4% to 16.9%, while revenue growth was only 15.71%. Cost control may contribute more to profit than revenue growth. The final outcome of this capital challenge remains subject to review by the Hong Kong Stock Exchange and market testing. This medical device company, once highly regarded, now stands at a crossroads. (Written by Company Observation, author Cao Qian, edited by Cao Shengyuan)

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