[IPO Frontline] Mingzhi Technology Goes to Hong Kong: Gross Margin Rises Continuously, But These Points Are Worth Noting
Entering 2026, the Hong Kong IPO market has shown strong performance, with many new stocks surging significantly on their first day of trading. Companies like Biren Technology (06082.HK), RayBiotech-B (06938.HK), and Ming Ming Is Busy (01768.HK) all recorded impressive gains on their debut, while other new listings also saw varying degrees of upward movement.
Meanwhile, more "reserve forces" are accelerating their push into the Hong Kong market. The Hong Kong Exchanges and Clearing Limited (HKEX) website shows that WiseTech Limited (referred to as "WiseTech") recently submitted its prospectus, aiming to list on the HKEX Main Board, with CCB International acting as the sole sponsor.
For this Hong Kong listing, WiseTech plans to use the raised funds for: developing industry-specific component platforms focused on three core areas; expanding manufacturing capabilities and improving production efficiency; and further developing sales and marketing networks across various geographic regions.
A Leader in Niche Markets with Multiple Commercialized Products
As a platform-based medical device company with a history dating back to 2000, one of WiseTech's core strengths lies in its deep control over the disposable endoscope supply chain.
The prospectus reveals that WiseTech operates in Silicon Valley and China, focusing on the R&D and commercialization of disposable endoscope systems. It is one of the very few companies globally to achieve vertical integration in the supply chain, covering the entire process from in-house R&D and manufacturing of core optoelectronic components and precision parts to complete system assembly.
In terms of product strength, according to CIC data, based on 2024 shipment volumes, the company ranks among the top three brands in the disposable ureteroscope markets of the U.S., Europe, and Japan, securing a significant position in high-value global markets. Its disposable ureteroscope and cystoscope (with a 6.6Fr working channel) are among the "world's slimmest."
In product strategy, WiseTech has built a diversified brand matrix and a rich product portfolio. Its proprietary brands include OTU (ONETU®), OTU co-brands (developed in collaboration with top medical technology companies), and WiScope®, covering urology, hepatobiliary surgery, respiratory, ENT, gastroenterology, and gynecology.
As of January 23, 2026, the company has secured approvals for eight product categories in key global markets (U.S., EU, and China), with an additional five product categories in the pipeline. Among them, disposable endoscopes (e.g., ureteroscopes, cystoscopes, bronchoscopes) and image processors (OTU-A series main consoles, OTU-T series portable tablets) form two core product segments. The former meets clinical precision treatment needs as consumable devices, while the latter ensures image quality through advanced algorithms, together creating a complete product ecosystem.
Additionally, WiseTech's pipeline includes choledochoscopes, gastroscopes, colonoscopes, duodenoscopes, and neuroendoscopes, expected to achieve regulatory milestones between 2026 and 2027.
Profit Decline in First Three Quarters, but Strong Gross Margins
In terms of financial performance, for 2023, 2024, and the first three quarters of 2025, WiseTech reported revenues of RMB 135 million, RMB 141 million, and RMB 117 million, respectively, with a year-on-year revenue growth rate of 3.9% for the first three quarters of 2025.
Revenue growth was primarily driven by the market's shift toward disposable endoscopes, with rising customer demand boosting shipment volumes, offset by a decline in development and other service income due to the completion of major service contracts in 2025.
On the profitability front, for 2023, 2024, and the first three quarters of 2025, WiseTech achieved net profits of RMB 49.99 million, RMB 66.666 million, and RMB 49.922 million, respectively, with a year-on-year decline of 14.49% in net profit for the first three quarters of 2025, showing signs of "revenue growth without profit growth," attributed to factors like increased R&D expenses.
The prospectus also disclosed that WiseTech's gross margin was 69.1% in 2023, rising to 72.6% in 2024 and further to 73.7% in the first nine months of 2025. The steady improvement in gross margin was mainly due to cost savings from higher production utilization and increased yield rates of self-designed camera modules, fully reflecting the profitability advantages of the vertically integrated model.
In terms of cash flow, for 2023, 2024, and the first three quarters of 2025, the company's net cash generated from operating activities was RMB 53.605 million, RMB 74.338 million, and RMB 42.797 million, respectively, providing solid support for business expansion and R&D investments.
Additionally, as of September 30, 2025, the company's cash and cash equivalents stood at RMB 127 million.
High Customer Concentration and Other Points to Note
Beyond financial performance, there are other aspects of WiseTech worth noting.
The prospectus reveals that while the company's revenue continues to grow, the pace is relatively modest, with year-on-year growth of 4.4% in 2024 and 3.9% in the first three quarters of 2025, failing to align with the industry's rapid growth trajectory. Data shows that the global disposable endoscope market is expected to grow at a compound annual growth rate (CAGR) of 17.2% from 2024 to 2032.
Moreover, WiseTech faces potential risks from high customer concentration. According to the prospectus, the company's customer base primarily consists of distributors. For 2023, 2024, and the first three quarters of 2025, revenue from the top five customers accounted for approximately 67.2%, 62.6%, and 69.9% of total revenue, respectively, with the single largest customer (Customer A) contributing 41.5%, 31.6%, and 36.0% of total revenue.
This highly concentrated customer structure means the company's revenue stability is overly reliant on a few major clients, warranting attention.
Conclusion
Overall, WiseTech can be considered a "small but beautiful" company, with a strong position in certain niche markets, high gross margins, and steady profitability. However, its revenue scale and growth performance are modest, and the "revenue growth without profit growth" trend in the first three quarters of 2025 is also noteworthy.
Author: Yun Zhi Feng Qi
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