IPO Application Resubmitted by China's Leading Medical Beauty Enterprise IMEIK to HKEX

On June 27th, the leading medical beauty company IMEIK submitted an application for listing in HKEX.IMEIK had submitted HKEX listing documents in 2021 that is now invalid.IMEIK is China's largest supplier of hyaluronic acid-based dermal filler by sales volume of 2021.

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On June 27, Chinese medical beauty leading company IMEIK Technology Development Co., Ltd (hereinafter referred to as "the" the ") submitted its listing application to the main board of HKEX, with Goldman Sachs, CICC and JPMorgan Chase being co-sponsors.

CHAILEEDO notes that this is not the first time IMEIK submits an IPO application to HKEX.In July 2021, IMEIK announced its submission of its application for listing on the main board of the Hong Kong Stock Exchange while IMEIK's application for listing in HKEX turned out "invalid" this year. It should be noted that the term of validity of the Hong Kong Stock Exchange Prospectus is 6 months, but the invalid prospectus does not mean failing in listing, and subsequent prospective issuers can reactivate the listing procedure by updating relevant documents.

Therefore IMEIK resubmitted documents in a renewed effort to get into the Hong Kong stock market. If the IMEIK gets listed this time, it will form a dual-listing pattern featured by both A-shares and H-shares.

The company's official site shows that IMEIK was founded in 2004 as one of the leading enterprises in the medical beauty industry. The company is developed based on the medical equipment manufacturing of the medical equipment products of the industry, including solution-based and gel-based injection products,  and the industrialization of sodium hyaluronate fillers, sodium hyaluronate composite solution and facial implant thread has been successfully realized.

According to Frost Sullivan, IMEIK is China's largest dermal filler supplier based on hyaluronic acid by sales in 2021, accounting for 39.2% of the total market share. IMEIK is the second largest hyaluronic acid dermal filler supplier in China, with a market share of 21.3%, and the largest supplier among all Chinese companies with a market share of 58.9%.

According to IMEIK’s financial report, the first quarter of 2022 has seen the company's total revenue total of USD 64 million, a year-on-year increase of 66.07%; The net profit for its parent company was USD 42 million, a year-on-year increase of 64.03%.In 2021, the Company registered total revenue of USD 216 million, an increase of 104.13% over the same period of the previous year; The net profit for its parent company was 143 million USD, an increase of 117.81% year on year.

IMEIK's revenue mainly stems from the listed and approved injection dermal filler, which is categorized as solution injection products and gel injection products. In 2021, revenue from solution injection products was USD 156 million, up by133.84% year-on-year, accounting for 72.25% of the total revenue; Gel injection products account for USD 57 million, up by 52.8% year-on-year, which takes up 26.61% of the total revenue.

Last year, IMEIK disclosed in its announcement that the purpose of listing on Hong Kong stock exchange was to "further enhance the company's capital strength and comprehensive competitiveness".This year, IMEIK resubmitted its listing application, which is intended to raise capital mainly for investment, acquisition and licensing; development and expansion of product pipeline; expanding global reach; marketing and brand building and replenishment of working capital.

According to Frost Sullivan, the market size of the Chinese medical beauty market increased from USD 11.586 billion in 2016 to USD 23.127 billion in 2020, a compound annual growth rate of 18.9%. The IMEIK is a gold track in medical beauty, and a second launch helps to accelerate its business.

The principle of IMEIK also suggested that for the company's strategic consideration, the company will also consider the overall arrangement of international business after securing a certain market share in China whereas going public on the Hong Kong stock exchange enables the company to build an internationalized capital platform in a bid to better bring its business abroad.