New stock preview | In the era of joint procurement, can Ande Medical's overseas income double to support the new growth driver to break through the Hong Kong stock market?

In the macro background of global aging and the continuous increase in the prevalence of chronic diseases, medical consumables, as rigid demand products for achieving drug delivery, sampling, protection, and other core clinical treatment tasks, are facing unprecedented growth opportunities. Especially under the wave of China's centralized procurement policy accelerating domestic substitution, local enterprises with advantages in the research and development of high molecular materials and a multi-product pipeline layout are gradually breaking through industry barriers and driving continuous increase in market concentration. In the tide of increasing industry concentration and continuous growth in overall scale, Shandong Ande Medical Supplies Co., Ltd. (referred to as "Ande Medical") has formally stepped into the spotlight of the capital market. Recently, Ande Medical submitted an application for listing on the main board of the Hong Kong Stock Exchange, with China Securities Co., Ltd. as the sole sponsor. It is understood that this is not Ande Medical's first attempt to enter the capital market. As early as July 2023, Ande Medical submitted IPO counseling filing materials to the Shandong Securities Regulatory Bureau, working with China Securities Co., Ltd. to start listing counseling work. The counseling filing was accepted by the regulatory authorities in August of the same year, and in May 2026, the company officially submitted a notice of termination to the Shandong Securities Regulatory Bureau. Transitioning from the A-share market to the Hong Kong stock market, can Ande Medical write its own new chapter in the capital market? "Versatile Player" deepens in segmented track As an innovative medical consumables provider founded in 2003, Ande Medical is not simply relying on a single popular product to break through, but has built a diversified product matrix covering drug delivery, vascular access, blood specimen collection, interventional therapy, surgical products, and more. According to Frost & Sullivan, based on the number of registration certificates as of the last practicable date, Ande Medical is one of the most comprehensive companies in the world for vascular access products; according to the number of medical consumables product registration certificates issued by the China National Medical Products Administration (NMPA), the company ranks second in China. This comprehensive distribution has established a solid moat for Ande Medical in the fierce market competition. Especially in the core field of drug delivery, Ande Medical holds 75 NMPA product registration certificates, with multiple products achieving "China's first", such as the first 1.2-micron precision filter infusion set, intelligent infusion set, etc., its drug delivery products ranked second in China by revenue in 2025. In the field of blood specimen collection, the company not only ranks second in sales volume in China but also participated in drafting arterial blood sample collector product standards for the International Organization for Standardization/Technical Committee 76, demonstrating its dominance in industry standard setting. From a financial performance perspective, Ande Medical presents a unique posture of resilience in the industry headwinds. According to the prospectus, from 2023 to 2025, the company's operating income was 941 million yuan, 936 million yuan, and 910 million yuan, showing a slight downward trend. This decline is mainly affected by the macro policy impact of the downward price trend of centralized quantity procurement in China, a challenge faced by the entire industry. However, against the background of revenue pressure, Ande Medical's profit side has shown remarkable stability and risk resistance. During the same period, the company's net profit was 156 million yuan, 153 million yuan, and 154 million yuan, maintaining stability; the gross profit margin continued to rise from 45.6% to 47.6% over the three years, an increase of 2 percentage points. This abnormal "increased revenue but not profit" indicator forcefully proves that Ande Medical has successfully offset the price pressure brought by centralized procurement through product structure optimization, cost control, and the iteration of high value-added products, thereby improving the quality of its profits. In addition to the steady performance of its main business, Ande Medical's international layout has added highlights to its financial performance. In addition to the domestic market pressure from centralized procurement, overseas business has become a new growth engine for the company. From 2023 to 2025, Ande Medical's overseas income increased from 46.62 million yuan to 99.17 million yuan, a growth of 112.7%, far exceeding the industry average. Currently, Ande Medical's products are available in all 31 provinces in China, covering over 4,600 hospitals (including more than 1,100 Grade III hospitals), and are exported to more than 80 countries and regions worldwide. This "stable domestic base + high growth overseas" dual-driven model provides strong support for the company's continued hematopoietic capacity. "Perils" and "Opportunities" under normalized centralized procurement Although Ande Medical has shown the potential of being an "excellent student" in business layout and profitability, behind the glowing data in its prospectus, there are still significant risks and challenges that cannot be ignored. Firstly, the worsening industry competition landscape and the normalization of centralized procurement policies pose the greatest external concerns. Although the company has maintained an increase in gross profit margin through technological iteration, the size of the domestic medical consumables market is expected to reach $117.1 billion by 2030, but the industry's "internal competition" is intensifying. While Ande Medical holds a leading position in mature product lines such as infusion sets and blood collection vessels, its technological barriers are relatively limited, facing fierce price competition from many domestic and foreign manufacturers. How to continuously maintain high gross profit in the future depends not only on the company's cost control but more importantly on its ability to rapidly commercialize high-value products in fields like interventional therapy and medical imaging consumables. Currently, the company has 42 NMPA registration certificates and 26 products in research in these emerging fields, but it has not yet established absolute dominance as in the drug delivery sector. Secondly, the product quality crises in the company's history also sound an alarm for future compliance operations. According to public information, the predecessor of Ande Medical was involved in a medical device Level II recall incident in 2020, involving disposable central venous catheters for peripheral vein insertion and umbilical artery catheters for infants, totaling over 100,000 units. Although this incident occurred before the company's name change through stock reform and the recall level was classified as Level II, which may cause temporary or reversible health hazards, it undoubtedly exposed the production quality control and supply chain management risks that the company may face during a period of rapid expansion. The medical device industry is closely related to life safety, with extremely high regulatory standards, and any minor quality oversight could cause irreversible damage to the brand reputation. For a listed company about to undergo scrutiny by global investors, establishing a quality management system stricter than industry standards throughout the entire process will be a long-term issue it must face after listing. Furthermore, despite Ande Medical's qualification in having a diversified product line layout, the hidden concern of a single revenue structure cannot be ignored. Data from the prospectus shows that drug delivery products, as the company's core revenue pillar, still accounted for over 50% of revenue in 2025. Although the company is trying to build defenses through diversified product lines such as vascular access and blood specimen collection, the current size of these emerging sectors has yet to fully compensate for the gap left by the loss of the core main business. Under the trend of centralized price reductions, the company's performance fluctuations are highly dependent on policy shifts. Once the contract renewal prices for core products further decline in centralized procurement, or more disruptive alternative therapies emerge, the company's revenue foundation will face severe tests. In summary, Ande Medical's Hong Kong IPO is undoubtedly to prepare ample ammunition during the industry reshuffle period. According to industry forecasts, the global medical consumables market is expected to reach approximately $448.7 billion by 2030, with an annual compound growth rate of over 6%. For Ande Medical, going public is not only to expand capacity and supplement liquidity but also to accelerate its transformation into the high-value consumables field. The company currently has over 50 products in the registration stage and is supported by four core technology platforms. If it can successfully enter the capital market, it will help accelerate the research and promotion of high-margin products such as interventional therapy, freeing itself from the dependence on traditional low-value consumables. However, the capital market is rational, and while investors are willing to pay for its steady profitability and global layout, they will inevitably discount its revenue growth slowdown, centralized procurement policy risks, and potential quality compliance hazards. Whether Ande Medical can achieve its desired pricing in the Hong Kong stock market depends not only on its past performance but also on its ability to clearly communicate to the market the logic of maintaining high growth in the "post-centralized procurement era."