Net profit falls short of three years ago, proactively cutting off "liquidity support" projects—is Kolarridi's second IPO attempt likely to succeed?
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Behind the glamour of high-end radiotherapy equipment costing tens of millions, the seemingly inconspicuous supporting consumables often hide relatively high profit margins.
As a supplier of radiotherapy supporting materials, Guangzhou Klarity Medical Equipment Co., Ltd. (hereinafter referred to as "Klarity") focuses on positioning membranes and similar products, with gross profit margin exceeding 60% for the past three years—over 10 percentage points higher than downstream equipment manufacturers.
Now, Klarity is sprinting towards the Beijing Stock Exchange and will be reviewed on March 13.
This is not Klarity’s first time on the review stage. As early as 2021, the company applied to list on the ChiNext Board and was given the opportunity the following year, but the listing was directly rejected by the listing committee due to the limited market space for its main products.
The regulatory concerns at that time have indeed been somewhat validated.
Now, Klarity finds itself caught in the dilemma of "increased revenue but not increased profit." In 2025, revenue reached 315 million yuan, up more than 30% from 2022; but parent net profit during the same period was only 64 million yuan, shrinking by more than 7% compared to 2022.
Behind the challenged performance growth, Klarity also plans to raise funds to expand production with this listing, sparking market concerns about potential overcapacity.
Growth Ceiling
As an important method for cancer treatment, the core of radiotherapy is the precise targeting of tumor regions by high-energy rays.
To ensure the precision of treatment plans and avoid damaging healthy tissue, patients must maintain a specific position during treatment, which puts high demands on radiotherapy positioning and immobilization devices.
Klarity’s core products—radiotherapy positioning devices—are used to fix, restrict, and track the patient’s position during radiotherapy. These mainly include consumables such as positioning membranes and vacuum negative pressure bags, as well as equipment such as radiotherapy fixation frames and flat beds.
In 2024, Klarity’s radiotherapy positioning devices generated 223 million yuan in revenue, accounting for nearly 80% of the total.
Compared to large radiotherapy equipment costing millions or even tens of millions, the unit price of consumable radiotherapy positioning devices is not high.
In 2024, the unit prices for Klarity's radiotherapy positioning membranes and fixation frames were 218.12 yuan and 21,700 yuan respectively.
Even so, Klarity’s gross profit margin is high, remaining around 60% from 2022 to 2024, enough to make many downstream high-end medical equipment giants envious.
For example, a downstream client, United Imaging Healthcare, which deepened its customized cooperation with Klarity, had a gross profit margin of only 48.54% in 2024.
By comparison, as an upstream supporting supplier, Klarity’s overall gross profit margin was more than 10 percentage points higher than that of core downstream equipment giants.
This contrast reflects a hidden truth in the radiotherapy industry chain: behind the high-end equipment market, it is the inconspicuous supporting consumables that occupy the high ground in gross profit margin.
However, in 2025—while downstream equipment manufacturers surged ahead with nearly 50% year-on-year net profit growth—Klarity fell into the dilemma of "increased revenue without increased profit."
In 2025, Klarity's revenue increased by 10.48% year-on-year to 315 million yuan, but its parent net profit dropped by 5.47% to 64 million yuan, a level even lower than 2022.
Profitability shrank considerably, with the net profit margin at 20.15% in 2025, down nearly 10 percentage points from 2022.
This is the result of both price and cost pressures on the products.
On one hand, end-user procurement for consumables has intensified cost controls, directly weakening product profitability. In 2025, the gross profit margin was 60.13%, down 4.5 percentage points from 2022.
Klarity has even initiated significant price cuts in some regions. Noticeably, during group procurement of medical consumables in Liaoning Province in 2024, Klarity proactively lowered the price of its positioning membrane from 450 yuan to 320 yuan—a reduction of 28.89%.
On the other hand, in order to stabilize market share, Klarity was forced to increase promotion efforts, with the sales expense ratio rising from 16.87% in 2022 to 19.05%, further eating into net profits.
With all profitability indicators under pressure, the concern over Klarity’s growth ceiling is in the spotlight.
Lack of growth was precisely the fatal flaw that saw Klarity’s 2022 attempt to list on ChiNext fail.
At the time, the listing committee explicitly pointed out the limited market space for Klarity’s core products and specifically inquired about the potential impacts of policies like "volume-based procurement."
In hindsight, the regulators’ concerns have now been reflected in the financial data.
Returning to the capital markets after three years, Klarity must again prove its ability for sustained growth.
Cutting the “Working Capital Supplement” Project
Behind Klarity’s two IPO attempts, "lack of funds" is not an issue.
The most direct evidence is the consistently negative financial expenses.
From 2022 to 2024, Klarity’s financial expenses were -6.8047 million yuan, -4.7107 million yuan, and -4.9954 million yuan, respectively.
These reported gains largely come from exchange rate gains and interest income.
With the U.S. dollar appreciating against the RMB, Klarity saw significant exchange gains—especially in 2022 when it reached 5.2471 million yuan.
At the same time, Klarity invested its accumulated funds from business operations into large-term deposits and other low-risk financial products. Interest income climbed from 1.3328 million yuan in 2022 to 3.9045 million yuan in 2024.
Even with long-term bank loans, these debts did not substantially impact Klarity’s profit and loss statements.
Klarity’s loans were mainly for building new headquarters. According to accounting rules, before the building reached its intended usable state in September 2024, related interest expenses could be capitalized and directly added to asset costs.
Although from 2025 onward, with the headquarters completed, all related loan interest will be expensed on the profit and loss statement, Klarity’s large interest income will continue to offset these costs, resulting in financial expenses for the period still showing as "-6,400 yuan."
This makes Klarity’s large-scale fund-raising seem rather abrupt.
In the second round of inquiries, the Beijing Stock Exchange also asked Klarity to explain "the rationale and necessity of using raised funds to supplement working capital."
In response, Klarity admitted it did have relatively ample funds, with a disposable fund balance of 207 million yuan at the end of 2024.
To prove the rationality of its fundraising and to ease regulatory concerns, Klarity made a concession by directly cutting the 40-million-yuan working capital supplement project.
Even so, this move has cast doubt on the necessity of Klarity’s financing.
The fundraising also involves projects such as "headquarters construction for radiotherapy positioning and rehabilitation products," but with the main product facing market challenges and intensified price pressures, the necessity of aggressively raising funds to expand capacity is far from certain.
If downstream market demand fails to expand in tandem to absorb this new capacity, the heavily-invested headquarters and production lines will inevitably turn into depreciation and amortization burdens. This won’t break through Klarity’s growth ceiling and may instead become a drag on its profitability.
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