The company spent 100 million yuan on online promotion services over three and a half years. Gynecological surgeries such as hysteroscopy, cesarean section, and ovarian cystectomy not only help women alleviate pain but can also lead to postoperative complications like intrauterine adhesions and pelvic/abdominal adhesions. To prevent such outcomes, medical advancements have introduced postoperative anti-adhesion products centered around sodium hyaluronate materials. Changzhou Baireuji Biopharmaceutical Co., Ltd. (hereinafter referred to as "Baireuji", 874637.BJ) is a medical device company primarily focused on postoperative anti-adhesion products for intrauterine, pelvic/abdominal, and nasal/sinus cavities. On January 21, Baireuji successfully passed the listing review hearing at the Beijing Stock Exchange. In reality, due to the relatively niche market for postoperative anti-adhesion products that Baireuji operates in, the industry's market space is somewhat limited. In recent years, the company has actively explored a "second growth curve" by adding the production and sales of functional skincare products. However, this segment has been consistently loss-making under high marketing investments and has not yet achieved profitability. According to the prospectus, the funds raised from this IPO are intended to be fully invested in the construction project of an absorbable and degradable biomedical materials industrial base. Baireuji stated that sufficient technological reserves and clear industrialization prospects have laid a solid foundation for the implementation of the fundraising project.

Anti-adhesion products are a crucial part of gynecological surgeries. They prevent adhesions at the source and promote healing, playing a key role in protecting women's postoperative health and fertility. This is the core business area of Baireuji – anti-adhesion medical devices. The prospectus shows that Baireuji's anti-adhesion products are widely used in trauma repair areas such as intrauterine, pelvic/abdominal, and nasal/sinus cavities. They can significantly reduce the physical and financial burden on patients caused by secondary surgeries or complications after adhesions, thereby minimizing the waste of healthcare resources. Currently, the cross-linked sodium hyaluronate gel product for intrauterine use is Baireuji's top-selling item. From 2022 to 2024 and the first half of 2025 (hereinafter referred to as "the reporting periods"), it generated revenues of 113 million yuan, 130 million yuan, 151 million yuan, and 85 million yuan respectively, accounting for 74.85%, 65.59%, 65.37%, and 59.91% of the company's main business revenue. Although its proportion has declined annually in recent years, it remains around 60%.

The prospectus and response letters indicate that Baireuji's cross-linked sodium hyaluronate gel product for intrauterine use was launched in 2015. It is currently the first Class III medical device in China approved by the National Medical Products Administration for preventing postoperative intrauterine adhesions, filling a market gap in this field and having obtained the EU CE mark. Based on this, the sales volume of this product has continued to grow rapidly since its launch. The reporting periods saw sales volumes of 930,400 units, 1.049 million units, 1.2071 million units, and 699,600 units respectively. The average selling price remained relatively stable at around 100 yuan, specifically 102.24 yuan, 101.34 yuan, 101.47 yuan, and 96.54 yuan.

According to data from Frost & Sullivan, based on manufacturer statistics, Baireuji's cross-linked sodium hyaluronate gel for intrauterine use accounted for 34.83% and 38.35% of the surgical market share in 2022 and 2023, respectively.

In addition to the intrauterine gel product, Baireuji also has cross-linked sodium hyaluronate gel products applied in the pelvic/abdominal field. These generated revenues of 2.123 million yuan, 11.0528 million yuan, 11.474 million yuan, and 8.5086 million yuan during the reporting periods, with their contribution to main business revenue increasing from 1.41% to 6.01%. Furthermore, the company offers medically cross-linked sodium hyaluronate gel products for nasal cavity use. These products achieved revenues of 6.3873 million yuan, 9.7026 million yuan, 13.3827 million yuan, and 8.1009 million yuan in the respective periods, accounting for between 4.24% and 5.79% of revenue.

Baireuji frankly admitted in the prospectus that its other anti-adhesion products are still in the market development stage, generating low revenue, leading to a certain reliance on the intrauterine gel product in the short term. The company stated that if the market growth for this product fails to meet expectations in the future, or if revenue declines significantly due to industry policies, it would adversely affect the company's operating performance. The prospectus shows that as of the end of June 2025, the company's main products had gained access to approximately 2,100 hospitals in China, covering about 600 Class A Tertiary hospitals. These include prestigious institutions like Peking Union Medical College Hospital, Tongji Hospital affiliated with Tongji Medical College of Huazhong University of Science and Technology, Shanghai Hongqiao International Maternity and Infant Hospital, and West China Second University Hospital. In fact, the market ceiling for postoperative anti-adhesion products, which Baireuji's products belong to, is relatively low. According to Frost & Sullivan data, calculated based on hospital admission prices, the total market size for postoperative anti-adhesion materials in the intrauterine, pelvic/abdominal, and nasal/sinus cavity fields in China was approximately 3.945 billion yuan in 2023. Baireuji stated that although the penetration rate of anti-adhesion products in the aforementioned fields is continuously increasing, and the growth in surgical volumes also drives market growth, if future industry growth or product penetration rates fall short of expectations, or if intensified market competition leads to a significant decline in the company's market share and gross profit margin, it would adversely affect the company's operating performance. Despite the low market ceiling, Baireuji's revenue still primarily relies on products like biomedical materials used in anti-adhesion products. The company's products can be divided into two main categories: medical devices and functional skincare products. Among these, medical device products are Baireuji's main revenue source. They generated revenues of 124 million yuan, 154 million yuan, 178 million yuan, and 102 million yuan during the reporting periods, accounting for 81.94%, 77.75%, 77.11%, and 72% of main business revenue, respectively. The gross profit margins for these periods were 82.86%, 84.17%, 84.98%, and 83.77%, respectively.

Amid the relatively limited industry market space, Baireuji has actively explored a "second growth curve" in recent years by adding the production and sales of functional skincare products containing hyaluronic acid functional derivatives. The products mainly include soothing and moisturizing essence masks and barrier-strengthening moisturizing creams, which are general-purpose cosmetics, under the brand "VITREGEN". Currently, the "VITREGEN维缇芮生" Tmall flagship store has 180,000 followers and a store rating of 5 stars. It sells various products like essences, moisturizing lotions, clay masks, creams, and masks, with prices ranging from 152.73 yuan to 359 yuan. The best-selling product is the "Guangpo Cream" priced at 289 yuan for 50ml, suitable for oily and sensitive skin. It has over twenty thousand transactions, ranking TOP1 on Tmall's best-selling cream for acne-prone skin list, with a 98.5% positive rating. User reviews mention "comfortable texture, transforms into water upon application, moisturizing and quickly absorbed on the face". In fact, the prospectus shows that Baireuji only formally commenced its e-commerce business for functional skincare products on platforms like Douyin, Tmall, Kuaishou, and Xiaohongshu in 2021. Therefore, this segment currently contributes a relatively low proportion of revenue. From 2022 to 2024 and the first half of 2025, Baireuji's functional skincare business generated revenues of 27.2174 million yuan, 44.0946 million yuan, 52.9321 million yuan, and 39.6134 million yuan, accounting for 18.06%, 22.25%, 22.89%, and 28% of main business revenue, respectively. The gross profit margins for these periods were 80.32%, 72.65%, 72.82%, and 75.34%. Although the functional skincare business does not generate high profits, Baireuji has invested heavily in marketing expenses to enter the market and expand its share. The sales expenses for the reporting periods were 58.445 million yuan, 65.6478 million yuan, 79.0456 million yuan, and 44.8228 million yuan, respectively. The largest component of these expenses is online promotion service fees, which were 21.4044 million yuan, 25.7812 million yuan, 32.0426 million yuan, and 22.7083 million yuan for the respective periods. Over three and a half years, the cumulative investment reached 102 million yuan. Its proportion of Baireuji's total sales expenses increased from 36.62% to 50.66%. Consequently, the sales expense ratio for the functional skincare business was as high as 92.17%, 72.63%, 77.78%, and 69.92% during the reporting periods.

The high marketing investment in the functional skincare business has also increased Baireuji's overall sales expense ratio, which was 38.77%, 33.13%, 34.19%, and 31.69% for the respective periods. The average for comparable companies in the industry during the same periods was 32.95%, 32.37%, 37.23%, and 42.7% respectively, meaning Baireuji's ratio was higher than the industry average in 2022 and 2023. However, Baireuji stated that due to the rapid growth in functional skincare sales revenue in the first half of 2025, the sales expense ratio has shown a decline. Nevertheless, the high marketing investment has eroded the profits of Baireuji's functional skincare business. This segment has been consistently loss-making in recent years, incurring losses of 12.5538 million yuan, 9.2339 million yuan, 12.4025 million yuan, and 3.2932 million yuan during the reporting periods, accumulating a total loss of 37.4834 million yuan over three and a half years. In response to the Beijing Stock Exchange's inquiry about when the functional skincare business might achieve breakeven, Baireuji stated in its response letter that it is expected to reach breakeven in the fourth quarter of 2027.

Despite this, Baireuji indicated that to further enhance brand influence, the company expects to continue market promotion investments in the functional skincare business. If subsequent promotion strategies fail to effectively adapt to market changes or if brand promotion results fall short of expectations, the time to profitability for this segment might be delayed. Furthermore, if this business remains in a loss-making state for an extended period, it could adversely affect the company's overall profitability. Driven by the combined efforts of both business segments, Baireuji achieved revenues of 151 million yuan, 198 million yuan, 231 million yuan, and 141 million yuan from 2022 to 2024 and the first half of 2025. The net profit attributable to shareholders was 31 million yuan, 50 million yuan, 52 million yuan, and 41 million yuan for the respective periods. The gross profit margin of the main business was 82.41%, 81.61%, 82.19%, and 81.41% respectively. Baireuji also released its 2025 performance forecast in the prospectus, expecting annual revenue of 292 million yuan, a year-on-year increase of 26.16%. The forecasted net profit attributable to shareholders is 70 million yuan, a year-on-year increase of 34.59%. The company stated that revenue growth is mainly due to increased downstream demand and higher surgical penetration rates of the company's anti-adhesion products, while profits also grew rapidly under the effect of economies of scale.

As a medical device company, the establishment and development of Baireuji is a typical "scientist entrepreneurship" story. The founder of Baireuji is Shu Xiaozheng, born in June 1974. In 1992, the 18-year-old Shu Xiaozheng was admitted to Zhejiang University, where he obtained a Ph.D. in Chemistry in 2001. Subsequently, Shu went to the University of Utah in the United States for postdoctoral research and held a research faculty position, focusing on biomedical materials, particularly the application of sodium hyaluronate in biomedicine. In 2006, Shu Xiaozheng decided to return to China to start a business. He first formed the Baireuji Biopharmaceutical startup team in Shanghai's Zhangjiang, then settled in Changzhou in April 2008 as a leading talent under the second batch of the "Thousand Talents Program," establishing Baireuji Limited. In May 2023, the company was wholly transformed into a joint-stock company. Under Shu Xiaozheng's leadership, as of the end of June 2025, Baireuji had obtained NMPA Class III Medical Device Registration Certificates for 3 products, NMPA Class II Medical Device Registration Certificates for 6 products, CE marks for 4 products, and FDA filings for 2 products. Simultaneously, the company has been recognized as a national-level "Little Giant" specialized and sophisticated enterprise (the fifth batch) and a Jiangsu Province specialized and sophisticated SME. In fact, Baireuji has also gained considerable recognition from the capital market. According to Tianyancha data, from November 2008 to January 2023, Baireuji completed a total of 7 rounds of financing, introducing investors such as Jiuzhou Chuangtou, S Capital (the VC fund under Fidelity Investments USA), Sanjiang Capital, Qianji Capital, and Oriental Securities. In July 2023, Baireuji initiated its A-share IPO辅导, listed on the New Third Board in October 2024, and submitted its IPO application to the Beijing Stock Exchange in December of the same year, which was accepted. As of now, Shu Xiaozheng directly holds 27.84% of Baireuji's shares and controls the voting rights corresponding to 4.51% of the shares through two employee持股 platforms, Changzhou Xinyue and Changzhou Xinli, giving him combined control over the voting rights of 32.36% of the company's shares. He is the largest shareholder, controlling shareholder, and actual controller of the company.

In response to the Beijing Stock Exchange's inquiry regarding the adequacy of the basis for identifying Shu Xiaozheng as the actual controller, Baireuji replied that, apart from Shu Xiaozheng, other shareholders hold relatively low and dispersed stakes, significantly different from Shu's shareholding proportion. According to relevant regulations, Shu Xiaozheng can be identified as the controlling shareholder and actual controller, as he can exert significant influence on the shareholders' meeting. Baireuji also stated that other major shareholders have issued commitments not to seek control, indicating a low risk of changes in company control. Bai Wenxi, Chief Economist of the China Region for the China Enterprise Capital Alliance, commented that Baireuji's growth reflects a very typical structural tension between "scientist entrepreneurship" and "capitalization." It encapsulates the fundamental dilemma faced by almost all hard-tech entrepreneurs: how to find a balance between technological ideals and the rules of capital? In Bai Wenxi's view, equity dilution can be seen as "tuition fees" paid by scientists during the entrepreneurship process. Paying these fees early and wisely can truly industrialize their technology. However, after paying tuition, it's necessary to use the triple leverage of corporate charters, platforms, and capital to "regain" control; otherwise, no matter how beautiful the story, it merely paves the way for others. It is worth noting that due to personal cash flow needs and family consumption requirements, Shu Xiaozheng has borrowed money from banks and friends, resulting in significant personal debt. In the second-round response letter released on December 2, 2025, Baireuji stated that, as of now, Shu Xiaozheng's total major debt amounts to 8.9753 million yuan. This primarily consists of loans from Jiangnan Rural Commercial Bank, Industrial Bank Zhonglou Sub-branch, and from his friend Shen Yingda. Among these, 3.3959 million yuan is due within one year.

The response letter shows that Shu Xiaozheng's average pre-tax salary and bonus over the past three years was 1.3513 million yuan. Furthermore, as of the end of June 2025, Baireuji had undistributed profits of 117 million yuan. Based on Shu Xiaozheng's total shareholding ratio of 30.37%, he is expected to receive a pre-tax dividend of approximately 35.6105 million yuan. Baireuji claimed that the principal and interest of Shu Xiaozheng's aforementioned outstanding loans will be repaid through his personal salary, bonus, and dividend income subsequently, and there is预计不存在债务到期不能清偿的风险 (no anticipated risk of inability to repay debts upon maturity). Additionally, Shu Xiaozheng has a good credit record, with no history of failing to repay large debts. Moreover, based on the company's equity value and its sustainable dividend-paying capacity, Shu Xiaozheng has good credit financing capability. From returning to China to start his business in 2006 to the present, Shu Xiaozheng has led Baireuji for nearly 20 years. The company's development history is also his personal奋斗史 (struggle history). Now, he is leading the company to knock on the door of the Beijing Stock Exchange. Are you optimistic about Baireuji's upcoming listing?