Industry Overview - The special medical food market in China is rapidly growing, with a projected market size of approximately 140 billion RMB in 2023 and expected to exceed 200 billion RMB by 2025, reflecting a compound annual growth rate (CAGR) of 14.16% [1][9] - The global market for special medical foods surpassed 14.1 billion USD (about 1000 billion RMB) in 2023 and is anticipated to reach 21.8 billion USD by 2030, with an annual growth rate exceeding 6% [1] Company Profile - Saintong Special Medical (Qingdao) Nutrition Health Technology Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, with CITIC Securities as the sole sponsor [1] - The company specializes in the development, production, and sales of special medical food products, holding the top position among domestic brands in the Chinese market, with a market share of 6.3% [1][2] Financial Performance - From 2022 to 2024, the company's revenue grew from 491.2 million RMB to 834.1 million RMB, representing a CAGR of 30.3% [3][4] - The gross profit margin remained high at around 71%, indicating the profitability of the special medical food business [3][4] - However, the company's net profit fluctuated, with figures of 83.9 million RMB, 170.4 million RMB, and 94.1 million RMB over the same period, leading to a net profit margin of 17.1%, 26.1%, and 11.3% respectively [3][4] Product Segmentation - In 2024, the revenue from allergy prevention products accounted for 90.3% of total revenue, while preterm infant products and lactose-free products contributed 4.8% and 2.5% respectively [5][6] - The company has launched 14 major special medical food products, with 16 additional products currently in development [2] Market Dynamics - The penetration rate of special medical foods in China is approximately 3%, significantly lower than over 40% in mature markets like the U.S. [9] - The market for infant special medical food products is expected to grow at a CAGR of 15.1%, while non-infant products are projected to grow at 21.5% [9] Investment Landscape - In the first quarter of this year, three Chinese special medical nutrition companies raised nearly 700 million RMB in financing, with Saintong Special Medical securing over 400 million RMB in its B+ round, marking one of the largest financings in the sector [8]