STAR SPORTS MEDICINE CO., LTD. submitted its listing application to the Hong Kong Stock Exchange on March 3, with CITIC Securities and CCBI International as joint sponsors.

As a leading sports medicine clinical solution provider in China, Star Sports Medicine has seized the forefront of the fast-growing domestic substitution wave with its self-developed implants, active devices and related consumables.

According to Frost & Sullivan data, by revenue in 2024, the company was the fourth-largest sports medicine device provider in China with a market share of approximately 6.5%, and also the largest domestic brand in the sector.

Business Model: Deeply Focused on Sports Medicine, Full Product Portfolio Covering Clinical Needs

Star Sports Medicine focuses on the high-growth medical device segment of sports medicine, providing comprehensive solutions for soft tissue injuries in the shoulder, knee, hip, foot & ankle, elbow and hand, and extending into sports rehabilitation and prevention.

The company’s product portfolio follows a clear structure:“Implants as the core, supplemented by surgical devices and consumables.”

From 2022 to the first nine months of 2025, implant revenue remained stable at 76% to 80% of total revenue, serving as its core income source. Revenue from surgical devices and related consumables rose gradually from 20.2% to 22.3%.

As of the Latest Practicable Date, the company’s product portfolio includes 62 products covering implants, active devices and related consumables, surgical tools and regenerative repair products.

Notably, the company holds 27 Class III medical device certificates and 24 Class II medical device certificates, ranking first in China’s sports medicine industry, demonstrating its first-mover advantage in product registration and compliance.

In terms of overseas expansion, the company has obtained more than 200 medical device regulatory approvals and registration certificates in Europe, Southeast Asia, the Middle East and Latin America, accelerating its globalization pace.

Financial Performance: Sustained High Revenue Growth, Steadily Improving Profitability

Financial data shows Star Sports Medicine is in a phase of rapid growth, with substantial increases in both revenue and profit.

Revenue grew 62.7% from RMB 147 million (2022) to RMB 239 million (2023), and further 37.1% to RMB 327 million (2024).

Revenue in the first nine months of 2025 reached RMB 273 million, up 23.9% year-on-year.

Growth was mainly driven by higher sales volumes across all product categories amid improving market acceptance, and the“volume for price”effect following centralized procurement policies that improved implant accessibility.

In terms of profitability:

Gross margin remained high at around 70%: 70.9% (2022), 74.3% (2023), 69.6% (2024) and 73.8% (Jan–Sep 2025).

Implant gross margin dipped from 79.0% (2023) to 72.4% (2024) due to centralized procurement, but rebounded to 76.6% in Jan–Sep 2025 through cost control and scale effects.

Gross margin of surgical devices and consumables rose steadily from 57.1% (2022) to 64.3% (Jan–Sep 2025).

Net profit performance was also strong:

Period profit rose 41.5% from RMB 40.34 million (2022) to RMB 57.11 million (2023), and surged 67.0% to RMB 95.39 million (2024).

Net profit in Jan–Sep 2025 reached RMB 89.87 million, up 47.7% year-on-year, with net margin rising to 32.9%.

Selling and distribution expenses declined as a percentage of revenue, reflecting improving scale efficiency.

R&D expense remained stable at 11%–15% of revenue, with cumulative R&D investment exceeding RMB 120 million from 2022 to Jan–Sep 2025.

Impact of Centralized Procurement: Significant Volume-for-Price Effect, Overseas Markets as New Growth Driver

Since nationwide centralized procurement was implemented in 2024, 14 out of 19 implant models have been included in the procurement program.

Although average selling prices (ASP) declined, sales volumes rose sharply, driving strong top-line growth.

Implant sales volume surged from 159,000 units (2022) to 560,000 units (2024), reaching 473,000 units in Jan–Sep 2025.

ASP fell from RMB 735.8 per unit (2022) to RMB 448.6 per unit (Jan–Sep 2025).

This volume-for-price strategy successfully translated into revenue growth, proving the company’s adaptability under centralized procurement.

Meanwhile, overseas expansion has become a new growth engine:

Overseas revenue share jumped from just 0.3% (2022) to 14.0% (Jan–Sep 2025).

Overseas revenue soared from RMB 379,000 to RMB 38.30 million.

Overseas sales volume surged from 1,024 units to 68,000 units.

The company distributes products mainly through distributors:

Domestic network covers more than 200 distributors.

Overseas distributors rose from 8 (2022) to 63 (end-September 2025).

Market Outlook: Huge Room for Domestic Substitution, Smart Rehabilitation Opening New Growth Tracks

China’s sports medicine device industry is still in the early development stage with substantial upside compared with developed markets.

According to Frost & Sullivan:China’s sports medicine implant and device market is projected to grow from RMB 5.4 billion (2024) to RMB 12.1 billion (2030), at a CAGR of 14.3%.

The number of sports medicine-related patients reached 169 million in 2024 and is expected to exceed 200 million by 2030.

Notably, China’s smart rehabilitation solution market is forecast to grow at a CAGR of 47.5%, reaching approximately RMB 22.9 billion by 2030.

The company has developed a sports prescription rehabilitation system, successfully entering this high-growth segment and unlocking a second growth curve.

In the competitive landscape, international giants still dominate China’s sports medicine device market.

Among the top five manufacturers in 2024, four were international brands with a combined market share of about 59.3%.

As the largest domestic player with a 6.5% market share, Star Sports Medicine enjoys ample room for domestic substitution.

Ownership Structure and R&D Strength: Founder-Controlled, Technology-Driven Development

As of the Latest Practicable Date:Mr. Dong directly holds 33.14% of the company’s shares.Through entities controlled by Tianjin Bokang, he indirectly holds approximately 8.33% of voting rights.In total, he can jointly control about 41.47% of voting rights, achieving relative control.This concentrated ownership structure supports stable long-term strategy execution.

R&D capability underpins core competitiveness:

The company has applied for over 260 patents, with more than 180 granted.

It is a national high-tech enterprise and a national“Little Giant”enterprise in specialized and sophisticated industries.

It has participated in establishing a series of industry standards.

Conclusion

Star Sports Medicine’s HKEX listing application represents a technology-driven domestic leader in the high-growth sports medicine sector.

The company is achieving scale expansion via volume-for-price under centralized procurement while accelerating overseas expansion.

Its financials validate an effective growth path: sustained high revenue growth, improving profitability and explosive overseas business expansion.

Backed by huge domestic substitution potential and new opportunities in smart rehabilitation, the company is well-positioned to further expand its leading edge in the 10-billion-level sports medicine market, supported by strong technological know-how, rich product registration pipeline and an increasingly complete distribution network.

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