Blue Whale News, June 24 (Reporter He Tianjiao) On June 22, 2026, Guangdong TH Medical Technology Development Co., Ltd. (hereinafter referred to as "TH Medical", 02697.HK) announced the official launch of its H-share IPO, with China International Capital Corporation and DBS Group serving as joint sponsors. It is expected to be listed on the main board of the Hong Kong Stock Exchange on June 30. Based on an issue price range of HKD 119.30 to HKD 135.40 per share, the company's market capitalization after listing is estimated to be between HKD 4.253 billion and HKD 4.826 billion. If calculated at the median issue price of HKD 127.40, the expected net fundraising amount is approximately HKD 388 million.

As a hard-tech medical device company with the halo of "domestic first" and "international first," TH Medical's IPO reflects the industry's transition from technological validation to commercial realization in the surgical robot sector, while also presenting the growth pains faced by unprofitable innovative device companies to the market.

Sales of seven sets of equipment in two years

TH Medical was established in 2018 and is engaged in the research and commercialization of percutaneous puncture and ablation surgical robots in China. It currently has one core product, a percutaneous puncture surgical robot, with four models: TH-S1, TH-S, TH-S Pro, and TH-SA, all of which have obtained Class III registration certificates issued by the National Medical Products Administration, approved for use in lung and abdominal punctures. TH Medical is expanding the indications of TH-S1 to retroperitoneal lesions. In addition to the core product, TH Medical's product pipeline also includes two key products - the percutaneous microwave ablation surgical robot TH-X MW approved for liver and lung tumor treatment and the percutaneous microwave ablation surgical robot TH-X HMW approved for liver tumor treatment; as well as five other candidate products, such as the compact percutaneous puncture surgical robot TH-P series approved for lung and abdominal punctures, the MW150 microwave ablation therapy device, the TH-X Cryo cryoablation robot, and the ex vivo organ preservation and assessment systems TH-LS KI300 and TH-LS LU100.

From the various data in the prospectus, it can be seen that TH Medical's choice to enter the capital market at this time is essentially a financing behavior racing against cash flow. As of the end of June 2025, the company's cash and cash equivalents were only about HKD 78.7 million, while the net cash outflow from operating activities in the first half of 2025 had reached HKD 62.7 million. At this rate of consumption, the existing funds can only support about a year and a half of operations. Meanwhile, the company's net losses for 2024 and 2025 are expected to reach HKD 92.2 million and HKD 90.1 million, respectively, with cumulative losses exceeding HKD 180 million over the two years. The main reason for the losses is the enormous R&D expenses incurred to support product development and initial commercialization, as well as the ongoing investments in sales distribution and administrative expenses

Against the backdrop of continued negative operating cash flow and rising reliance on financing, connecting to the public market financing channel through the Hong Kong Stock Exchange's 18A mechanism has become a practical choice for the company to alleviate financial pressure and continue pipeline advancement. Approximately 74.5% of the raised funds will be allocated to the research and commercialization of core products, 9.9% for the research and commercialization of key products, 6.0% for the research and patent layout of other candidate products, 2.0% for expanding manufacturing capacity, and the remaining 7.6% as working capital. This arrangement clearly indicates that TH MEDICAL aims to further consolidate its commercialization capabilities and technological barriers in the field of percutaneous puncture and ablation surgical robots through its listing.

It is noteworthy that as the leading player in domestic puncture surgical robots, TH MEDICAL disclosed in its prospectus that the company will only deliver one set of the TH-S system in 2024, and a total of six systems in 2025. The prospectus reveals that the overall market size for domestic percutaneous puncture surgical robots in 2025 is only about 40.3 million yuan, with a penetration rate of less than 0.7% among approximately 12,000 tertiary hospitals nationwide. The second player in the same field, Ruichu Robotics, has its core product RC120 already in 39 top-tier hospitals, but the sales revenue from the main unit is also zero for both 2024 and the first half of 2025.

So, why are TH MEDICAL's sales so dismal?

Industry insiders point out: "What truly constrains this industry are three major hurdles: The first is the lack of charging codes. For a long time, there has been no unified category for robot-assisted surgical charges nationwide, making it difficult for hospitals to charge patients additional technical service fees after purchasing the equipment. The second is the long procurement cycle of public hospitals. From clinical trials, departmental verification, budget approval to public bidding, it often takes 2 to 3 years, resulting in a natural time gap between equipment installation and revenue realization. The third is the difficulty in changing doctors' operating habits. Manual puncture is a mature technique that has been in use for decades, with doctors' operational experience solidified and reliant on tactile feedback. Robot-assisted puncture requires retraining and extends surgical time, and without independent charging incentives, there is a lack of motivation to switch on the clinical side."

Where does the confidence to go public come from?

In the face of the reality that the company will only deliver six systems in 2025, the market naturally questions why such a company, with revenue still in the million-yuan range, dares to knock on the door of the Hong Kong Stock Exchange.

According to the prospectus, data from ZhiShi Consulting shows that based on the 2025 shipment volume, TH MEDICAL holds the top position in the domestic percutaneous puncture and ablation surgical robot market with a market share of 36.4%, while the market share calculated based on revenue is 28.0%. More critically, the company's core product TH-S has been recognized by the National Medical Products Administration as "domestically innovative," and the key product microwave ablation surgical robot TH-XMW has been recognized as "internationally innovative." TH-XHMW has also been approved for the treatment of liver tumors. As of now, the company has a total of 10 products, excluding consumables, that have obtained market approval, establishing a customer network covering 23 key provinces, and collaborating with 27 distributors. The internal sales and marketing team of 51 people is gradually expanding the commercialization landscape. These registration certificates, clinical data, and channel groundwork constitute the core chips that enable TH MEDICAL to dare to IPO, and also allow the market to tolerate its current high valuation based on growth expectations for the coming years.

However, behind the impressive industry ranking, the commercialization shortcomings of TH MEDICAL cannot be ignored. From 2023 to the first half of 2025, the company's operating revenues were 2.301 million yuan, 1.791 million yuan, and 173,000 yuan, while the corresponding net losses reached as high as 95.541 million yuan, 92.156 million yuan, and 56.734 million yuan, presenting a typical pattern of "million-level revenue, billion-level losses." More concerning is the issue of customer concentration; during the reporting period, the revenue share of the top five customers reached 100% for three consecutive periods, with the contribution of the single largest customer even reaching 100%. This means that any slowdown in the procurement rhythm of any terminal hospital will cause severe fluctuations in revenue. Meanwhile, the company mainly relies on third-party distributors for sales, and there are still significant shortcomings in building a scaled marketing system and terminal bargaining power. Although R&D expenditures reflect a commitment to technological investment, they reached 40.575 million yuan, 50.846 million yuan, and 23.371 million yuan in 2023, 2024, and the first half of 2025, respectively, combined with annual sales and administrative expenses of about 30 to 40 million yuan, making it difficult for the company to escape the loss state in the foreseeable future. These risk factors have been truthfully disclosed in the prospectus and have become negative variables that investors must consider when judging the reasonableness of its valuation.

When observing TH MEDICAL within the competitive landscape of the entire surgical robot industry, its situation appears even more complex. MicroPort Robotics achieved revenue of 551 million yuan in 2025, a year-on-year increase of 114.2%, while Precision Medical's revenue during the same period also reached approximately 456 million yuan, with a gross margin of 66%. In contrast, TH MEDICAL's revenue scale has a gap of several tens of times compared to leading companies.

Within the same track, Ruichu Technology focuses on lightweight single-puncture models to quickly capture the grassroots market; Toad Medical expands its percutaneous puncture business in multiple tracks; companies like United Imaging Intelligence, Ganaiwei, and Yida Jixing rely on imaging ecosystems or differentiated technological routes to enter niche fields. TH MEDICAL follows an integrated full-stack route of "puncture + ablation," with the most comprehensive product matrix, the most qualifications, and the richest clinical data. However, in an environment where equipment prices are suppressed by centralized procurement expectations and hospital purchases still require large equipment configuration certificate approvals, there remains tension between its high-end positioning and volume release rhythm.

In addition, the "Guidelines for the Project Establishment of Medical Service Prices for Surgical and Treatment Auxiliary Operations (Trial)" issued by the National Medical Insurance Administration in January 2026, although establishes tiered regulations for robot-assisted surgeries, puncture robots have not yet been included as independent charging items in most provinces, leaving hospitals with insufficient motivation to purchase equipment worth millions of yuan This means that even if TH MEDICAL successfully goes public, it still needs to wait for the release of the procurement cycle, the volume increase of consumables in a closed loop, and the implementation of medical insurance policies to truly realize its performance