Mindray is reportedly preparing for an IPO in Hong Kong with a fundraising target of at least USD 1 billion. As one of China’s leading medical device makers, it holds strong positions across its three core businesses: medical imaging, in vitro diagnostics (IVD), and patient monitoring and life support.
As of September 25, Mindray’s market capitalization exceeded RMB 280 billion (USD 39.2 billion). Although revenue growth slowed in 2024, it delivered RMB 11.7 billion (USD 1.6 billion) in net profit attributable to shareholders, maintaining positive growth. That resilience reflects its product competitiveness, established distribution channels, and growing international presence.
Given its steady earnings and leadership status, why is Mindray moving ahead with a Hong Kong listing now?
Overseas revenue keeps climbing
One key factor is its rising share of overseas sales, which now account for half of total revenue. According to its financial statements, Mindray generated RMB 8.33 billion (USD 1.2 billion) in overseas revenue in the first half of 2025, representing 50% of its total, up ten percentage points from 2021.
Over the years, the company has built a global network covering R&D, manufacturing, marketing, and after-sales services. By mid-2025, its products reached more than 190 countries and regions, supported by 64 overseas subsidiaries across more than 40 countries. Of its 12 R&D centers worldwide, five are located outside China.
Mindray has also moved into the top tier of international healthcare. It now supplies 80 of the world’s 100 leading hospitals. Within its IVD and patient monitoring and life support divisions, it added more than 160 and 100 high-end clients, respectively, in the first half of 2025 alone.
Two dynamics are driving this shift in revenue mix: domestic sales have slowed while overseas sales have continued to grow, lifting the proportion of foreign revenue. In addition, acquisitions have strengthened its product portfolio, particularly in high-end devices.
IPO aims to fuel overseas push
With half of its revenue now coming from abroad, Mindray’s Hong Kong IPO appears aimed at accelerating global growth. The funds could go into expanding sales channels, reinforcing supply chains, and ramping up R&D.
In China, demand for low- and mid-tier devices has largely been met, and competition in high-end segments is intensifying. Abroad, Mindray has already moved beyond competing on price and is challenging multinational giants in premium markets, where it has gained traction.
Technology is central to this effort. Mindray channels 9–10% of revenue into R&D, higher than industry leaders such as Medtronic, Abbott, Siemens Healthineers, and GE HealthCare, which typically spend 5.6–8.7%. Even when R&D spending dipped slightly in early 2025, it fell less than revenue, keeping the ratio stable. This consistency supports its ability to innovate and compete head-to-head with global peers.
Fresh capital from the IPO would strengthen high-end device development and overseas R&D hubs, helping sustain product innovation and deepen local presence.
Acquisitions have also been key. Since 2020, Mindray has completed several deals:
- 2021: Acquired Finland’s HyTest to secure upstream IVD reagents.
- 2023: Bought Germany’s DiaSys to deepen its IVD portfolio and reinforce overseas supply chains.
- 2024: Purchased APT Medical, a STAR Market–listed company, entering electrophysiology and cardiovascular devices.
This path mirrors those of multinational peers whose histories are marked by acquisitions. The Hong Kong listing could help Mindray build capital reserves for future cross-border mergers and acquisitions.
Listing in Hong Kong may also reduce foreign exchange risks compared with raising funds in mainland China for offshore projects, while optimizing the balance sheet.
The potential remains large: analysts estimate Mindray’s overseas addressable market at more than RMB 450 billion (USD 63 billion). Its 2024 overseas revenue of RMB 16.4 billion (USD 2.3 billion) translated into less than 4% market share, leaving ample room for expansion.
Will investors buy in?
Mindray first went public in October 2018 on Shenzhen’s ChiNext board, raising RMB 5.93 billion (USD 830.2 million) in what was then the market’s largest IPO. Eight years later, it is targeting at least USD 1 billion in Hong Kong.
Both IPOs share the theme of expansion. In 2018, proceeds funded new plants, R&D centers, sales networks, and debt repayment. Ahead of its Hong Kong debut, Mindray has again been scaling through acquisitions and R&D spending, signaling growth-driven financing.
The context, however, differs. In 2018, leverage was climbing, liquidity was thinner, and fundraising partly aimed at easing short-term debt pressures. Today, the balance sheet is stronger, with a 25% debt ratio and larger cash reserves.
Mindray was in a high-growth phase in 2018, having just exited the New York Stock Exchange. Listing in Shenzhen allowed it to tap higher valuations. In contrast, slower revenue growth and profitability pressures today are prompting it to court overseas investors and boost international visibility.
Despite headwinds in China’s healthcare sector, Mindray remains among the domestic leaders. Its push into high-end niches, digital transformation, and overseas breakthroughs have seemingly reinforced that position. Domestically, medical equipment procurement rebounded in early 2025, and overseas momentum appears set to continue, suggesting earnings could recover soon.
Valuation may be more complex. After peaking in 2021, Mindray’s A-share price has halved. As of September, its average valuation was about 31 times trailing earnings, in the 35th percentile of the past five years. Compared with the 90-times multiple at the height of pandemic-driven ventilator demand, today’s valuations rest on more sustainable growth drivers: overseas expansion into larger, less saturated markets, and a likely near-term rebound in domestic sales.
At the same time, Mindray is investing in digital transformation, building an ecosystem that combines devices, IT, and artificial intelligence. This strategy could strengthen its technology moat and eventually support a valuation premium.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Huang Yida for 36Kr.