Summary of Key Points
Mindray Medical (the leading medical device company in the A-share market) is making its second attempt to list on the Hong Kong Stock Exchange (HKEX). Its first application expired after six months, so it quickly updated its materials and submitted another one. If successful, the company will become a dual-listed firm on both the A-share and HKEX platforms. Founder Li Xiting is a prime example of someone who came from humble beginnings to achieve great success, but his wealth has decreased significantly over the past five years, from a peak of 165 billion yuan to 84 billion yuan (a drop of more than 80 billion yuan). In 2025, the company’s performance was the worst since its listing: both revenue and net profit declined, and all three of its traditional main businesses shrank. The main reasons for this are domestic policies such as DRG/DIP reforms and centralized procurement. However, its emerging businesses (minimally invasive surgery, animal healthcare, etc.) and international markets have performed well, providing important support.
Why the Urgency to List on the HKEX?
Mindray’s first application to list on the HKEX was around May 2025, but the validity period of the application materials is only six months, so it automatically expired in November. The company immediately updated its financial data for 2025 (given the significant decline in performance last year) and added additional compliance documents before submitting another application again, showing its eagerness to get listed as soon as possible.
The urgency stems from several factors: a dual-listing on A-share and HKEX platforms would provide more financing options, especially since the HKEX can attract international investors. Additionally, with domestic market growth stagnating due to policies, the company needs funds to expand into international markets and develop high-end products. Listing on the HKEX would help address these needs. Being a leader in its industry, a dual-listing would also enhance its international profile, giving it more leverage when competing with giants like GE and Philips.
Poor Performance: The Worst Results Since Listing
Mindray’s 2025 performance was disastrous:
- Revenue: 33.2 billion yuan, a year-on-year decrease of 9.38%
- Net profit: 8.1 billion yuan, a decrease of over 30%
All three traditional businesses experienced declines:
- In vitro diagnostics (reagents and equipment for blood tests): revenue decreased by 9.4%, but became the largest business segment due to the steeper declines in other sectors
- Life information and support systems (monitors, ventilators): revenue decreased by 19.8%
- Medical imaging (ultrasound equipment): revenue decreased by 18%
The main issues were caused by domestic policies:
- DRG/DIP reforms: Hospitals are now charged based on the type of treatment rather than specific procedures, leading to more cautious purchases of medical devices and reagents
- Centralized procurement: The state’s centralized purchasing of reagents has pushed down prices, reducing company profits
- Mutual recognition of test results: Patients no longer need to undergo repeated tests, resulting in lower reagent usage
These policies have put the domestic medical device industry in a period of adjustment, and Mindray is not immune to their effects.
Bright Spots: Emerging Businesses and International Markets Provide Support
Despite the struggles with traditional businesses, Mindray has two areas of strength:
- Emerging Businesses: For the first time, emerging businesses were included as a separate segment in the company’s report, accounting for 16% of total revenue. These include minimally invasive surgery (such as laparoscopes) and animal healthcare equipment, with annual revenue of 5.38 billion yuan, a year-on-year increase of 38.85%. This growth is impressive for a company of Mindray’s size.
- International Markets: International revenue increased by 7.4% in 2025, accounting for over 53% of total sales for the first time. The European market grew by 17%, and emerging markets (such as Southeast Asia and Latin America) saw nearly 30% growth. In the first quarter of 2026, international revenue increased by 15.7% in US dollars, indicating a rapid recovery.
These highlights show that Mindray is diversifying its sources of revenue and relying on international markets when domestic sales decline.
Li Xiting’s Wealth: A Rollercoaster Ride
Li Xiting, the company’s founder (75 years old), came from a rural area in Anhui and graduated from the University of Science and Technology of China before starting the business. His wealth has fluctuated dramatically with the company’s performance:
- 2021: The company performed well, and his stock price soared, making him the richest person in Singapore with a fortune of approximately 165 billion yuan.
- 2025: His wealth dropped to 100 billion yuan.
- 2026: It further decreased to 84 billion yuan.
The significant drop in wealth over five years is mainly due to the company’s declining performance, which affected his stock price. Additionally, as a Singaporean citizen, his wealth may also be impacted by exchange rate fluctuations, but the core reason remains the company’s financial performance.
Funds Raised from the HKEX IPO
The proposed HKEX IPO aims to raise at least $1 billion, which will be used for the following purposes:
- Research and Development of High-End Products: Although Mindray is a leader in China, it still faces competition from international giants like GE, Philips, and Siemens in high-end markets. The funds will be used to develop advanced products and digital healthcare solutions using AI.
- Global Expansion: The company plans to establish more R&D centers and production bases overseas (in Europe and emerging markets) to reduce costs and improve supply chain efficiency, avoiding shortages like those experienced during the pandemic.
The success of this IPO depends on Li Xiting’s ability to lead the team in breaking through technological barriers and expanding Mindray’s presence in high-end markets.
In summary, Mindray’s second attempt to list on the HKEX is both a strategic move to diversify its funding sources and a necessity to overcome challenges in the domestic market. With limited growth opportunities domestically, the company relies on international markets and emerging businesses, which require substantial investment and technological advancement. For Li Xiting, continuing to drive the company at this age is crucial for maintaining Mindray’s position as a leader in the medical device industry.