A medical device company founded by a former Mindray employee and backed by GL Ventures and Lilly Asia Ventures has just completed its IPO.
On September 7, 2026, Mecody officially rang the listing bell on the Hong Kong Stock Exchange. As of press time, the company's share price stood at 10.23 yuan, down 33%, with a total market capitalization of about 4.93 billion yuan.
This platform-based medical device company with a Mindray lineage label has built three major business segments covering life support, minimally invasive intervention, and in vitro diagnosis in over a decade through the parallel strategy of independent R&D and mergers and acquisitions, and delivered a profit turnaround result in 2025.
Under the dual heavy pressure of the industry downturn and volume-based procurement policies, why could a medical device enterprise that just turned profitable choose to list on the Hong Kong stock market at this moment? What exactly is its moat? And why are star institutions including GL Ventures, Lilly Asia Ventures, SZVC, and Cinda Han Stone willing to accompany its growth all the way?
01
Veterans from Mindray set off on a new journey,
Capital places bets on this team
The first thing that makes Mecody memorable is its management team.
In 2011, Shenzhen Yusheng Medical (the predecessor of Mecody) was established, initially focusing on basic infusion and injection equipment. Two years later in 2013, Zhong Yaoqi, who had long been engaged in sales and strategic work at Mindray Medical, left his post and joined the company first through equity transfer, laying the groundwork for subsequent development.
Shortly after in 2014, Zhong Yaoqi's former superior Liu Jie, who was then the Chief Operating Officer of Mindray Medical, also chose to leave. The 45-year-old Liu Jie, with rich experience in management and capital operation, officially joined the company and took the position of general manager. Then in 2015, Liu Jie's wife Li Hui also joined the team.
By then, this team that had fought side by side at Mindray for many years completed full actual control of the company through a series of equity transfers and capital injections, while the original founder gradually stepped back from the front line.
The assembly of this team with years of practical experience at Mindray brought mature industry practices to the company. The market generally believes that the team brought the management experience and international vision accumulated in the past to Mecody, and the company quickly established a development strategy that uses mergers and acquisitions to support expansion.
Professional investment institutions also saw the value of this team combination.
In May 2017, the B-round financing raised 102 million yuan, with GL Ventures from Zhuhai entering the investment. In 2019, for the C-round financing, Tianjin Zhenying, Lilly Asia, SZVC and other institutions joined in, with a post-investment valuation of 1.178 billion yuan.
In 2021, a luxurious group of shareholders collectively placed bets, with 17 institutions participating, paying a total cash consideration of 476 million yuan, bringing the post-investment valuation to 6.419 billion yuan. Nanshan Softbank, Fenxiang Zeshan, and Gaoxintou appeared on the shareholder list. In 2023, Xinshi Xinxing and Xinshi Xinyao invested 88.75 million yuan, which is the layout of the Cinda Capital system.
In 2024, Taiping Hetao Medical Fund and Kangjun Zhongyuan Fund transferred shares, behind which are long-term capital from insurance funds and the biomedical industry.
These institutions are willing to accompany Mecody's growth because they value the company's platform-based M&A integration capability, as well as the scarcity of its simultaneous layout in three medical device tracks.
Although Mecody was still in a loss state in 2023 and 2024, its net profit reached 50.7 million yuan in 2025. If non-cash items such as share-based payment and listing expenses are excluded, the adjusted net profit reached 128.5 million yuan. Its gross profit margin continued to improve from 49.6% in 2023 to 53.7% in 2025, indicating that the scale effect has begun to show.
Chart of enterprise revenue and profit, made based on data from the prospectus
R&D is the largest expense of Mecody. From 2023 to 2025, R&D expenditure was 281 million yuan, 291 million yuan and 274 million yuan respectively, accounting for 17% to 21% of the revenue.
02
Three business pillars built through independent R&D and mergers and acquisitions
Mecody's business is divided into three major segments: life support, minimally invasive intervention, and in vitro diagnosis.
Life support is the fundamental business of Mecody. Its infusion workstation has ranked first in the Chinese market for eight consecutive years, and its enteral nutrition pump has topped the ranking for five consecutive years. Mecody's equipment has been operating in ICUs and operating rooms of Chinese hospitals for many years. However, the fundamental business also shows periodic characteristics. In 2023, the revenue of life support segment reached 564 million yuan. It dropped sharply to 494 million yuan in 2024, down 12.4%. Fortunately, it rebounded to 613 million yuan in 2025, proving that rigid demand still exists.
Chart of revenue proportion of the three business units, made based on data from the prospectus
The segment that truly drives growth is minimally invasive intervention. In 2025, this segment generated a revenue of 812 million yuan, accounting for 50% of the total revenue, with a gross profit margin of 59.4%, making it the most profitable business among the three pillars. Its digestive system minimally invasive intervention consumables rank top 3 in the Chinese market, and its disposable choledochoscope breaks into the top 5.
This advantage is built on the 1.62 billion yuan acquisition of Jiangsu Weidekang Medical in 2022. Weidekang Medical mainly focuses on endoscope consumables and minimally invasive intervention fields. This acquisition allowed Mecody to successfully enter the minimally invasive intervention track, and the revenue of this business segment surged from 386 million yuan in 2022 to 721 million yuan in 2024, with the revenue proportion also rising from 42.1% to 51.6%.
Mecody's in vitro diagnosis business has distinctive features. As of the end of March 2026, the company has more than 150 IVD products covering over 800 test items, including coagulation, blood group testing, chemiluminescence and molecular diagnosis. Its product structure is dominated by coagulation and blood group testing, which is highly aligned with the demands of surgery, ICU, blood transfusion and critical care, while chemiluminescence and molecular diagnosis serve as extended layouts.
In 2025, the revenue of IVD segment reached 194 million yuan, including 80.32 million yuan from blood group testing, 47.84 million yuan from coagulation testing, 34.9 million yuan from molecular diagnosis, and 30.48 million yuan from chemiluminescence. This business also comes from the acquisition of Runpu Bio in 2017 to obtain gel and blood group testing technologies, as well as the phased acquisition of equity in Shengkeyuan Company in 2020 and 2021 to enter the molecular diagnosis field. In 2021, the company also launched the fully automated thromboelastography analyzer Haema TX. Mecody is expanding from featured diagnosis to a more complete testing platform around clinical scenarios.
In the daily operation of hospitals, ICUs use Mecody's infusion pumps, operating rooms use its endoscopes, and clinical laboratories use its coagulation analyzers. By covering three departments at the same time, the sales cost is diluted while customer stickiness increases. As of March 2026, Mecody's products have covered more than 6,000 hospitals in China, including about 90% of tertiary A hospitals.
03
Broad tracks and breakthroughs in the competitive gap
Each of the three tracks chosen by Mecody is a market with a scale of hundreds of billions of yuan. The market is huge, but there are also a large number of competitors.
The prospectus cites the estimated data from CIC Consulting, showing that the three tracks of life support, minimally invasive intervention and in vitro diagnosis will all maintain a good growth rate in the next few years. It is estimated that by 2030, the scale of China's life support market will reach 92.4 billion yuan, the minimally invasive intervention market will reach 52.8 billion yuan, and the in vitro diagnosis market will reach 191.2 billion yuan.
The advancement of ICU bed construction in China, the iteration of primary medical equipment, superimposed with the general trend of domestic substitution, have left room for growth for domestic medical device enterprises. The release of demand in overseas emerging medical markets also provides incremental opportunities for local enterprises with overseas operation capabilities.
However, the prosperity of the track does not mean that enterprises can operate easily.
In the life support track, foreign brands have deep roots, and leading listed companies have also grown in the domestic market. The top 5 domestic enterprises in the drug infusion system market hold a combined market share of 53.1%, among which the top-ranked Mindray accounts for 21.1% of the market share, while Mecody ranks second with 9.9%, with a considerable gap from the top player.
The competition in the minimally invasive intervention digestive consumables track is more intense. The top 3 enterprises hold a combined market share of over 80%, the top two players have a market share of 38.5% and 22.9% respectively, and Mecody follows closely with 21.5%, facing great pressure to catch up.
The overall pattern of the in vitro diagnosis market is scattered. In the blood group testing equipment market, foreign brand Ortho accounts for 19.2%, and Mecody ranks fifth with 3.9%. When looking at the entire in vitro diagnosis market, it has to face competition from a huge number of peers.
Overall, foreign brands still have deep barriers in the high-end medical device market; the space for domestic substitution does exist, but enterprises need to cut into the market from the gaps.
In this industry, some challenges are unavoidable for all enterprises, and Mecody also has to face them.
Volume-based procurement is a policy hanging over all domestic manufacturers. As of March 2026, more than 90 types of Mecody's products have been included in volume-based procurement, with some products seeing a discount range of 30% to 70%. The policy will bring opportunities for product volume growth, but also continue to bring pressure on product prices.
In this context, expanding overseas markets has become a necessary choice for medical device enterprises. From 2023 to 2025, the proportion of Mecody's overseas revenue accounted for 38.4%, 45.0% and 48.3% respectively, and its products are sold to more than 140 countries and regions. Mecody has set up local representative offices in Mexico, the United Kingdom, the Netherlands, Turkey, India and Thailand.
Chart of proportion of domestic and overseas revenue, made based on data from the prospectus
For this Hong Kong stock listing, Mecody plans to raise 600 million Hong Kong dollars, of which about 35% will be invested in R&D, 20% will be used to expand manufacturing centers in Changzhou and Oxford in the UK, 20% will be used to improve sales capabilities, and 10% will be reserved for potential mergers and acquisitions. Among them, the newly built R&D and manufacturing center in Changzhou has a construction area of 116,000 square meters, and some production lines have been completed and put into operation. Mecody plans to use the raised funds to continue implementing the dual-wheel drive strategy of mergers and acquisitions and R&D.
This article is from the WeChat official account "Arterial Network" (ID: vcbeat), written by Yao Jing, and published by 36Kr with authorization.