A CD Capital’s portfolio company, BMC, was listed on the ChiNext board

On November 1st, BMC Medical Co., Ltd (SHENZHEN STOCK EXCHANGE: 301367), a portfolio company of CD Capital, was officially listed on the ChiNext board. The company’s stock was highly sought after by investors, with an issue price of 119.88 yuan per share and an issue P/E ratio of 56.75 times, raising a total of 1.918 billion yuan, which exceeded the target by nearly 1.2 billion yuan. As of the time of writing, BMC’s stock closed at 250.11 yuan in the morning, with a total market value of 16.007 billion yuan.

CD Capital invested in BMC in September 2015 and made an additional investment in December 2019, accompanying and supporting the company’s growth over the long term.

BMC: A Leading Respiratory Health Medical Device Company

BMC is a leading domestic company in respiratory health medical devices and consumables. For many years, it has continuously provided full-cycle products and services, from diagnosis and treatment to chronic disease management, for patients with sleep apnea-hypopnea syndrome (SAHS) and respiratory insufficiency (primarily chronic obstructive pulmonary disease, or COPD). BMC’s products serve multiple application scenarios, from medical institutions to home use.

After more than 20 years of development, the company has accumulated a wealth of technical expertise and product offerings, including home-use non-invasive ventilators, ventilation masks, sleep monitors, high-flow humidified oxygen therapy devices, and respiratory health chronic disease management services.

In 2020, BMC’s home-use non-invasive ventilators and ventilation mask products ranked first in export volume, and among all domestic brands, they also ranked first in domestic market share. The company has high market recognition, and its home-use non-invasive ventilators have been certified by both the U.S. FDA and the EU CE, enabling it to expand into international markets. BMC’s products are now sold in more than 100 countries and regions, making it one of the few Chinese brands to enter markets such as Europe and the U.S.

Complete Product Line and Strong R&D Focus

BMC places great emphasis on independent research and development and innovation capabilities. By the end of 2021, the company held 388 domestic patents, 27 international patents, and 55 software copyrights.

The technology behind home-use non-invasive ventilators is complex, and BMC is committed to technological innovation and product iteration. The company has developed a diverse and complementary product portfolio around its core products, including several key technologies. BMC’s BMC-790-30ATH ventilator has been recognized by the Ministry of Science and Technology as a product with significant technological advancements. The company’s R&D team excels in respiratory equipment technology and industrial development, actively participating in key national R&D projects and standing out among other leading organizations, showcasing its strong scientific research capabilities.

Steady Profit Growth

From 2019 to 2021, BMC achieved operating revenue of 258 million yuan, 560 million yuan, and 663 million yuan, respectively. The net profit attributable to the parent company for these three years was 39 million yuan, 228 million yuan, and 146 million yuan, respectively, with compound annual growth rates of 60.26% for revenue and 93.76% for net profit. Since 2021, the company has seized opportunities for rapid growth. In the first half of this year, BMC’s operating revenue and net profit reached 563 million yuan and 152 million yuan, representing year-on-year growth of 106.31% and 114.23%, respectively.

Fundraising to Expand Production Capacity

BMC’s latest fundraising project will invest 190 million yuan to build a "300,000-unit-per-year ventilator and 3.5 million-piece-per-year accessory production facility." The project has a three-year construction period and aims to expand the production capacity of non-invasive ventilators and consumables while improving automation and production efficiency, addressing bottlenecks in production capacity.

Additionally, the company will invest 157 million yuan and 191 million yuan, respectively, in "Marketing Network and Brand Building" and the "Medical Device R&D Center" projects, with the goal of expanding the domestic market and strengthening its R&D capabilities.

According to Sullivan’s forecast, as the global population ages and the penetration rate of chronic disease treatments continues to rise, the global home-use non-invasive ventilator market is expected to grow at a compound annual growth rate of 15.5%, reaching $5.58 billion by 2025. The domestic market has enormous growth potential, with a projected growth rate of 22%, higher than the global average. BMC is actively promoting its fundraising projects to overcome production capacity bottlenecks and build domestic and international sales channels, positioning the company to capture growth opportunities in the industry.

Future Growth Potential

Since the launch of a new round of healthcare reform in China, healthcare spending has increased rapidly. By capitalizing on the growth in the medical devices and equipment industry, as well as favorable policy trends, BMC is poised for significant future growth, backed by its comprehensive product portfolio and strong R&D capabilities.