Tianxing Medical switches to the Hong Kong Stock Exchange with a new brokerage: Passive withdrawal by sponsor applied for several months ago.

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Recently, Beijing Tianxing Medical Co., Ltd. ("Tianxing Medical") submitted an IPO application to the Hong Kong Stock Exchange.

This comes less than three months after Tianxing Medical's failed IPO on the STAR Market in June of this year, drawing market attention.

In its Hong Kong stock prospectus, Tianxing Medical stated: "Considering the then-market conditions and the relatively long time required for approval of the STAR Market listing application, the STAR Market listing application was withdrawn in June 2025."

It is worth noting that during the termination of the previous IPO, Tianxing Medical did not voluntarily withdraw the application.

According to the Shanghai Stock Exchange official website, the direct reason for the termination of Tianxing Medical's STAR Market IPO review was the unilateral withdrawal by the sponsoring institution, China International Capital Corporation (CICC).

In this regard, a person close to Tianxing Medical confirmed to Xin Feng that the company failed to reach an agreement with the sponsoring institution, which then unilaterally withdrew the company's IPO application.

In fact, it is not uncommon for a sponsor to unilaterally withdraw. For example, in January of this year, Orient Securities unilaterally withdrew Ningbo Zhongchun Gaoke Co., Ltd.'s main board IPO application.

"This is happening more and more. If the sponsor and the issuer cannot reach an agreement, the sponsor may withdraw the issuer's IPO application and terminate its sponsorship, fulfilling their 'gatekeeper' role," a private equity professional in the south told Xin Feng.

This time for its Hong Kong listing, Tianxing Medical has appointed CITIC Securities and CCB International as joint sponsors.

Tianxing Medical focuses on sports medicine, with its product range including implants, active devices and consumables, and surgical tools. In 2024, revenue and net profit attributable to the parent company were 327 million yuan and 95 million yuan, up 37.13% and 67.02% year-on-year, respectively.

Among them, implants such as suture anchors for soft tissue repair and fixation are the main source of revenue for Tianxing Medical, generating 270 million yuan in 2024, accounting for over 70% of total revenue.

This is a result of Tianxing Medical participating in centralized procurement by "trading price for volume."

In 2024, Tianxing Medical sold 560,000 implants, more than doubling year-on-year. However, there was a cliff-like drop in prices, with the price per unit dropping from 712 yuan in 2023 directly to 446 yuan per unit—a year-on-year decrease of nearly 40%.

Even so, Tianxing Medical’s gross profit margin remains considerable. In 2024, the gross margin for implants reached 72.4%, only slipping 6.6 percentage points year-on-year.

The second attempt at an IPO—whether Tianxing Medical can successfully knock on the door of the Hong Kong Stock Exchange—is being closely watched.

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