The biggest change in 24 years! Medical device companies benefit directly

On April 26th, April 24th, the Hong Kong Stock Exchange formally announced the newly revised listing rules. The new rules will take effect on April 30 and will accept listing applications. This is the chief executive of the Hong Kong Stock Exchange. Small Plus is called the 'new rule for the biggest reform in 24 years'. For domestic medical device companies that are in a rapid growth period, it will also be a long-term positive.

1. To allow the listing of biotech companies that fail to pass the financial qualification test on the Main Board, which is commonly referred to as a biotech company without income;

2. Allow companies with different voting rights structures to list; that is, companies wishing to adopt shares with different shares;

3. To establish a new convenient second listing channel for Mainland China and international companies seeking to become secondary listings in Hong Kong.

The HKEx refers to biotechnology companies, mainly referring to drug And medical equipment (including diagnostic equipment) companies. Enterprises are expected to have a market capitalization of not less than HK$1.5 billion, and meet the following criteria, etc. Although they have not yet earned income, they will still be eligible for listing:

The Hong Kong Stock Exchange's new regulations give advice on the listing of biotechnology companies

In contrast, medical device companies want to land on the A-share market, which can be described as 'bad luck' for several months.

Saibolan device has statistics, since the seventeenth session of the China Securities Regulatory Commission has started the audit committee, a total of seven medical device companies have passed the meeting, only two companies have been successful, five IPO have been rejected. In addition, there are also medical The equipment company chose to withdraw the materials and terminate the IPO application review.

Not long ago, the market was even spreading IPO underlined New Deal. That is, IPO companies in trials require net profit totaling over 100 million yuan in the last three years, and in the last year more than 50 million yuan. IPO companies that have applied for new filings Annual net profit exceeds 80 million, Entrepreneurship No less than 50 million boards will succeed.

A shares are not low on the profitability of listed companies. The new regulations of the Hong Kong Stock Exchange allow unprofitable medical device companies to list in Hong Kong.

Furthermore, many technology companies, including medical device companies, will choose to introduce multiple rounds of financing to enable the company to grow and expand in the initial stage. However, the financial equity of its founders is also often diluted. The new rules of the Hong Kong Stock Exchange “Different shares of the same stocks” allows the company’s founders to continue to control the company better, avoiding substantial dilution of the founder’s equity after the introduction of multiple rounds of financing.

However, the Hong Kong Stock Exchange's new rules also require that when companies wishing to adopt shares with different shares are listed, the minimum expected market value of the listed company to be listed should not be less than HK$40 billion, if the expected market value is less than HK$40 billion, the applicant has recently A financial year must record a revenue of HK$1 billion. This threshold is not too low for current domestic medical device companies.

The new regulations of the Hong Kong Stock Exchange may directly benefit many innovative medical device companies and enterprises that are interested in investing in innovative R&D teams for medical devices.

In addition, last week (April 21st), the National Small and Medium-sized Enterprise Transfer System Co., Ltd. (Xin Sanban) and Hong Kong Stock Exchange signed a memorandum of understanding on cooperation in Beijing.

According to the memorandum, in the future, the New Third Board Company of the Mainland can apply for listing in Hong Kong without delisting, and the two cities can be listed. At present, there are no preconditions for 'Three+H', and there are no special passages. The number of shareholders exceeds 200 will not be affected either.

According to the data, the total number of listed companies in the New Third Board has reached 11,472, including 1,280 innovation level companies and 1,297 market-making companies. However, due to the lack of trading activity and market liquidity of the New Third Board, the New Third Board has been in a sluggish trend. There are more and more delisting companies. In the past year, more than 1,000 companies have already withdrawn from the market, including more than 100 innovative enterprises, and the number of listed companies has started to decrease.

In the New Third Board listing business, medicine There are many companies in the industry, medical instruments enterprise Most of them are significantly different from the composition of the A shares. The latest figures are still unknown. However, as of the end of August 2016, according to the division of the Dongcai Industry, the number of medical device companies listed on the NEEQ has reached 154.

The listing of the "new 3rd board + H-shares" will also open up new convenient financing channels for some domestic listed medical and mechanical enterprises and become a new choice for some listed companies.