Core Viewpoint - Shenzhen Maikedian Biomedical Technology Co., Ltd. has submitted its IPO application to the Hong Kong Stock Exchange after nearly five years of preparatory work, with Morgan Stanley and Huatai International as joint sponsors. The company has raised approximately 2.259 billion yuan through 10 rounds of financing since 2016, leading to a significant increase in valuation from 320 million yuan in early 2016 to 8.245 billion yuan before the IPO, a nearly 25-fold increase. However, there are concerns regarding the authenticity of its performance, substantial goodwill from acquisitions, and frequent internal control and compliance issues [1]. Financial Performance - From 2022 to 2025, the company's revenue is projected to grow steadily, reaching 917 million yuan in 2022, 1.313 billion yuan in 2023, 1.399 billion yuan in 2024, and 787 million yuan in the first half of 2025. In contrast, net profit has been less favorable, with a loss of 226 million yuan in 2022, narrowing to 64.5 million yuan in 2023, and a projected loss of 96.6 million yuan in 2024 despite a 6.55% revenue increase. The company achieved a net profit of 40.968 million yuan in the first half of 2025, but cash flow from operating activities decreased to 62 million yuan and 57 million yuan in 2024 and the first half of 2025, respectively, primarily due to a significant increase in accounts receivable [2]. Cost Control and Profitability - The company has managed to reduce its sales, administrative, and R&D expenses as a percentage of total revenue. The sales expense ratio decreased from 23.8% in 2024 to 21.2% in the first half of 2025, while R&D expenses fell by 10.72% to 1.27 billion yuan, accounting for 16.09% of total revenue. While these measures have temporarily boosted performance, they may negatively impact long-term product innovation and market stability [3]. Business Expansion and Acquisitions - Maikedian's main business segments include minimally invasive intervention, life support, and in vitro diagnostics, with revenue shares of 51.17%, 37.86%, and 10.96% in the first half of 2025. The minimally invasive intervention segment has seen significant growth, largely due to the acquisition of VedeFar Medical in 2022, which increased its revenue from 386 million yuan in 2022 to 721 million yuan in 2024, continuing to grow by 16.85% to 403 million yuan in the first half of 2025. The company has pursued acquisitions as a primary growth strategy, including the purchase of Penlon and VedeFar Medical [4][5]. Goodwill and Compliance Issues - As of June 30, 2025, the company's goodwill reached 908 million yuan, accounting for 49.6% of its net assets, raising concerns about potential impairment risks. The company acknowledged in its prospectus that it cannot guarantee against future goodwill impairment losses, which could adversely affect its business and financial condition. Additionally, there have been internal control and compliance issues, including a production halt due to quality management failures and previous instances of product recalls and illegal operations, which may attract scrutiny from the Hong Kong Stock Exchange [5][6].