New Stock Outlook | Cofoe Medical Technology seeks internationalization as it lands on the GEM board three years after entering the Hong Kong stock market.

After less than four years after listing on the ChiNext, Cofoe Medical Technology recently submitted its prospectus to the Hong Kong Stock Exchange, seeking to list on the main board in Hong Kong. According to the Hong Kong Stock Exchange, Cofoe Medical Technology Technology Co., Ltd. submitted its listing application to the main board of the Hong Kong Stock Exchange, with Huatai International and BNP PARIBAS as joint sponsors. So, why is Cofoe Medical Technology launching a Hong Kong IPO again after only three years of A-share financing? Is their strategic intent only for "secondary financing"? Insights into the deeper motives may be seen from the company's fundamentals and industry background. Rehabilitation equipment drives growth According to the prospectus, since its establishment in 2007, Cofoe Medical Technology has been deeply cultivating the home medical equipment industry, always dedicated to providing convenient solutions for consumers and patients seeking high-quality and advanced home medical equipment. As of now, the company's product portfolio covers over 200 product categories and tens of thousands of products. According to Frost & Sullivan data, the company ranks second in terms of sales in all home medical equipment companies in China by 2024. At the same time, the company actively expands into international markets, with business presence in over 60 countries and regions in Asia, Africa, Europe, and the Americas, gradually establishing a global user base. In terms of channels, the company actively expands online markets. As of now, Cofoe Medical Technology has achieved full coverage on all mainstream e-commerce platforms such as Tmall, Jingdong, Douyin, Xiaohongshu, Pinduoduo, and YSB. In 2024, Cofoe Medical Technology's online sales revenue reached 1.981 billion yuan, ranking second among Chinese home medical equipment companies. In terms of performance, in the first half of 2022, 2023, 2024, and the first half of 2025, Cofoe Medical Technology achieved revenues of 2.977 billion yuan, 2.854 billion yuan, 2.983 billion yuan, and 1.496 billion yuan, respectively; and profits of 302 million yuan, 253 million yuan, 312 million yuan, and 167 million yuan, respectively, maintaining stable overall profitability. By sales segment, the company's business can be divided into three major categories: sales of medical health products, custom production, and other businesses. Among them, medical health products account for about 90% of revenues, which can be further subdivided into five major categories: rehabilitation equipment, medical care, health monitoring, respiratory support, and traditional Chinese medicine therapy. Among the five major product categories, products in the rehabilitation equipment category showed the most significant growth. From 2022 to 2024, revenues from this business were 526 million yuan, 718 million yuan, and 1.039 billion yuan, accounting for 17.7%, 25.2%, and 34.8% of total revenues, respectively. The growth in revenue from this business during the period was mainly attributed to the increase in sales of flagship products such as corrective and posture correction products and hearing aids. In 2024, driven by enhanced marketing efforts on social media e-commerce platforms, the company's online direct sales of corrective and posture correction products increased. The increase in sales of hearing aids was mainly consistent with the expansion of the company's "Good Hearing" offline store network. As of June 30, 2025, Cofoe Medical Technology had 738 self-owned stores in China, of which 689 were "Good Hearing" service centers covering over 135 cities in China. The "Good Hearing" service centers provide professional hearing testing services and supply various high-quality hearing aid products, including the company's own Cofu brand. According to Frost & Sullivan data, as of the end of 2024, in terms of the number of audiology centers in China, Good Hearing ranked among the top three in the industry. However, it is worth noting that this year, due to the company's strategic adjustment of online advertising and promotion schedules, focusing on the second half of 2025, sales of corrective, postural correction products, wheelchairs, and nursing beds in the first half of this year have slightly decreased compared to the same period last year. Global layout, seeking new growth points From an industry perspective, in 2024, home rehabilitation equipment, medical care products, health monitoring products, and respiratory support devices collectively accounted for approximately 63.3% of the global home medical equipment market, and this is expected to increase to 64.1% by 2030, still forming the main part of the market. In the Chinese market, the sales of home medical equipment mainly rely on the synergistic operation of online and offline channels. In 2024, terminal sales revenue achieved through platforms like Taobao, Jingdong, Douyin, Xiaohongshu, and other e-commerce platforms accounted for approximately 44.3% of the overall market; offline channels contributed 55.7% of sales, with retail pharmacies and medical equipment specialty stores playing a core role, while the remainder came from supermarkets and stores around medical institutions. With the rapid development of social media content e-commerce and instant retail models (such as Meituan), online penetration is expected to continue rising, reaching 67.1% by 2030. In line with this trend, multiple leading domestic companies, including this group, have proactively expanded into online channels to support business growth. In 2024, in terms of online sales revenue of home medical equipment, Cofoe Medical Technology ranked second nationwide. The current landscape of the Chinese home medical equipment market remains relatively fragmented, with a variety of participants including large domestic companies, multinational corporations, and technology startups. Among them, Jiangsu Yuyue Medical Equipment & Supply, with an operating revenue of 7.566 billion yuan and a net profit of 1.806 billion yuan in 2024, maintains a leading position in the market in terms of revenue and profit scale, significantly ahead of Cofoe Medical Technology. In addition, Cofoe Medical Technology also faces fierce competition from local listed companies such as Sinocare Inc., as well as international brands like Omron and Roche, demonstrating the highly diverse and competitive nature of this sector. In order to tap into new opportunities, in recent years, Cofoe Medical Technology has actively explored overseas markets, accelerating its global layout through presence on mainstream cross-border e-commerce platforms such as TikTok Shop, Temu, and Amazon. This move has shown initial effectiveness, with the company's overseas business revenue share steadily increasing from 1.4% in 2022 to 2.0% in 2024, and significantly rising to 6.5% in the first half of 2025, demonstrating a strong expansion momentum. However, rapid overseas expansion is also accompanied by evident characteristics of strategic investment period. It is worth noting that the company's gross profit margin from overseas sales has further declined to 21.79%, which is only about 40% of the domestic market gross profit margin. This data indicates that Cofoe Medical Technology is currently in an active investment stage of sacrificing profit margin for market share, and the profitability of its international business still awaits the gradual release from economies of scale and brand premium formation. It is noted that the primary purpose of this Hong Kong listing is to expand globally. According to the prospectus, Cofoe Medical Technology intends to use the funds raised for investment in promoting overseas sales channels and establishing distribution networks, potential strategic investments and acquisitions on a global scale, research and technological innovation in intelligent respiratory and oxygenation products, expanding domestic sales channels and distribution networks, brand promotion, and marketing activities. If this Hong Kong listing is successfully completed, Cofoe Medical Technology will establish an "A + H" dual capital platform layout, further enhancing its financial strength and brand influence. Against the backdrop of global market expansion and intensifying industry competition, the company still needs to seek steady development in the balance between international investment and profitability, product innovation, and channel coordination. The future progression of its internationalization process and consolidation of its domestic market position are worthy of continued attention.