WiseTek Med Ltd. has officially submitted a listing application to the Main Board of the Hong Kong Stock Exchange, with CCB International acting as the sole sponsor. The company, a platform-based medical device firm focused on single-use endoscopes, has quickly attracted capital market attention due to its impressive financial metrics—a 72.62% gross profit margin and 47.26% net profit margin in 2024, alongside a leading position in global markets. However, behind the high-margin glow, challenges such as high customer concentration, declining cash flow, and intensifying market competition cannot be overlooked.
Vertical integration and product advantages have helped build a competitive moat, while financial performance shows signs of "structural divergence." The prospectus positions WiseTek Med as a "platform-based medical device company," a concept centered on its unique vertically integrated model. The company maintains full control over the entire process—from independent R&D and manufacturing of core optoelectronic components and precision parts to final system assembly—making it one of the very few firms globally to achieve vertical integration in the single-use endoscope supply chain.
This integrated model has delivered notable cost advantages and technological control. The gross profit margin rose from 69.1% in 2023 to 73.7% in the first nine months of 2025, with the steady improvement in profitability partly attributable to cost optimization from supply chain autonomy. At the same time, the company's products boast competitive technical specifications—including the development of "one of the world's slimmest single-use ureteroscopes" and "one of the world's slimmest cystoscopes (with a 6.6Fr working channel)." These innovations are significant for minimally invasive surgeries, as they can reduce patient discomfort and lower surgical risks.
In terms of product portfolio, WiseTek Med has established a three-brand matrix consisting of its proprietary brand OTU (ONETU®), the OTU co-brand, and WiScope®, covering six medical fields including urology, hepatobiliary surgery, respiratory, ENT, gastroenterology, and gynecology. As of the prospectus date, the company had eight approved product categories in major global markets, with five additional categories under development expected to launch between 2026 and 2027.
In market position, based on 2024 shipment volumes, WiseTek Med ranked among the top three brands in the single-use ureteroscope markets of the United States, Europe, and Japan. This achievement is particularly notable for a domestic Chinese medical device company, reflecting the international competitiveness of its products, especially in highly regulated markets like the US, Europe, and Japan where technical barriers are high.
Notably, WiseTek Med's financial data reveals distinct characteristics of a leading player in the single-use endoscope space: while revenue growth has been steady, profitability remains exceptionally strong, though recent growth momentum has weakened, with clear pressure on profits.
In terms of revenue scale, the company reported full-year 2024 revenue of RMB 141 million, up approximately 4.4% from RMB 135 million in 2023, indicating relatively stable growth. More noteworthy is the performance in the first nine months of 2025: revenue reached RMB 117 million, a mere 3.86% increase from RMB 112 million in the same period of 2024, suggesting that market expansion and revenue growth may have entered a plateau.
However, the company's profitability metrics are impressive. The gross profit margin increased significantly from 69.1% in 2023 to 72.6% in 2024, and further climbed to 73.7% in the first nine months of 2025. This upward trend strongly validates the cost advantages and technological premium resulting from the company's vertically integrated supply chain. The proportion of cost of sales to revenue steadily declined from 30.9% in 2023 to 26.3% in the first nine months of 2025, directly driving the improvement in gross profit.
In pre-tax profit, 2024 saw a figure of RMB 81.83 million, a sharp 28.0% increase from RMB 63.92 million in 2023, far exceeding revenue growth and highlighting operating leverage. However, this trend reversed in the first nine months of 2025: pre-tax profit was RMB 58.93 million, a significant 16.2% decline from RMB 70.31 million in the same period of 2024. This directly led to a drop in net profit from RMB 58.38 million to RMB 49.92 million, a decrease of 14.5%. Although income tax expenses decreased, they were unable to offset the profit decline.
In summary, WiseTek Med's financial performance exhibits a "structural divergence": on one hand, revenue growth, while modest, is supported by a high and improving gross margin, proving strong market competitiveness and pricing power. On the other hand, the slight revenue increase coupled with a double-digit profit decline in the first nine months of 2025 exposes new challenges in the company's growth trajectory. The profit drop may stem from increased sales and marketing expenses due to heightened competition, rising R&D investments, and operational efficiency issues such as higher inventory levels and extended receivables cycles. This aligns with the deterioration in operating cash flow disclosed in the prospectus, which fell 19.45% year-over-year in the first nine months of 2025.
Finally, the net profit margin reached 47.3% in 2024, and even amid the profit decline in the first nine months of 2025, it remained high at 42.8%. Such elevated net margins are rare in the medical device industry, reflecting both the success of its business model and potential risks as competition intensifies and cost pressures mount.
WiseTek Med's financial statements depict a company at a critical inflection point: it has built a solid profitability moat through technological advantages and vertical integration, but is also experiencing growing pains as it transitions from a "high-margin niche market leader" to a "scalable growth platform."
Behind the high-growth endoscopy sector lie challenges related to customer concentration and cash flow. The single-use endoscope market is in a key phase of rapid growth and restructuring. This segment is quickly becoming an important growth area in the global medical device industry due to its ability to effectively avoid cross-contamination risks associated with traditional reusable endoscopes and significantly reduce hospital cleaning, disinfection, and maintenance costs. Industry forecasts project the global market to expand from approximately $2 billion in 2023 to over $6 billion by 2030, with a compound annual growth rate exceeding 17%, indicating substantial potential.
However, this high-growth track also exhibits significant barriers to entry and concentration. Currently, the international market is dominated by giants such as Ambu, Boston Scientific, and Olympus, which collectively hold over 40% of the global market share. Ambu holds about 25% share in Europe, while Olympus dominates approximately 35% of the gastroenterology endoscope segment. These players have built strong first-mover advantages and market moats through deep brand heritage, sustained high R&D investment, and mature global distribution networks.
In the Chinese market, local companies such as SonoScape and Aohua Photoelectricity are also accelerating their presence, with SonoScape already entering the urology single-use ureteroscope space, competing directly with WiseTek Med. As more players enter, the industry faces dual challenges of rising price pressures and accelerating technological iteration. Competition has expanded beyond product performance to include supply chain efficiency, cost control, and clinical service capabilities.
From a regional perspective, Europe and the US are currently the primary markets for single-use endoscopes, closely tied to strict infection control regulations, well-established insurance reimbursement systems, and high medical standards. WiseTek Med's leading position in these mainstream markets is a core advantage, but it also results in high reliance on overseas revenue, making operating performance vulnerable to external systemic risks such as geopolitics, currency fluctuations, and changes in international trade policies.
Notably, several structural risks have emerged in WiseTek Med's financial and operational metrics amid its rapid expansion. First, customer concentration remains high: from 2023 to the first nine months of 2025, sales to the top five customers accounted for between 62.6% and 69.9% of total revenue, with the single largest customer consistently contributing over 30%. This concentration means performance stability is highly dependent on key customers' purchasing decisions, posing significant reliance risks.
Second, the channel structure is relatively narrow. Although the company pursues a "hybrid global commercialization strategy," distributors accounted for 92.8% of 2024 revenue, with direct sales making up only 7.2%. Over-reliance on distributors, while aiding rapid market coverage, weakens control over end customers, compresses profit margins, and exposes sales to distributor strategy changes.
Third, supply chain concentration was once elevated. In 2024, procurement from the top five suppliers reached 81.5% of the total, though this figure dropped to 44.4% in the first nine months of 2025 due to supplier diversification efforts, indicating proactive steps to improve supply chain structure. However, stability in the supply of core components and raw materials remains a long-term risk, especially amid global supply chain restructuring.
Finally, growth quality shows signs of concern. In the first nine months of 2025, net profit fell 14.49% year-over-year, while net operating cash flow declined 19.45%. The cash flow deterioration was mainly due to increased inventory and extended receivables collection cycles, reflecting challenges in operational efficiency and capital turnover amid expansion. Although the gross margin remains high at 73.7%, the contraction in net profit may indicate initial erosion of profitability from intensified competition.
In summary, while the single-use endoscope sector offers considerable prospects, competition is increasingly fierce. The ability to balance continuous technological innovation, stable supply chain management, balanced customer and channel structures, and refined operational efficiency will determine whether companies can achieve sustainable development and ultimately stand out in this high-growth market. For WiseTek Med, effectively managing these operational and financial risks while benefiting from industry growth is key to long-term value creation.