Another robot company’s listing was suspended!

Recently, the official website of the Shanghai Stock Exchange showed that the IPO of Hangzhou Jianjia Medical Technology Co., Ltd. (hereinafter referred to as "Jianjia Medical") on the Science and Technology Innovation Board was suspended.

The reason for the suspension is that the financial information recorded in the application documents for issuance and listing has expired and needs to be supplemented and submitted. It is understood that Jianjia Medical entered the IPO application process in November 2022 and was guided by CITIC Securities for listing.

According to information, Jianjia Medical was established in 2018 and is a high-tech enterprise focusing on the research and development, production and sales of surgical robots and related products. It independently develops surgical robots covering the fields of joints, spine, trauma, dental implants, etc., and continues to expand in the fields of sports medicine and neurosurgery.

In terms of products, Jianjia Medical's product pipeline is relatively rich, covering four product lines: hip joint, knee joint, ankle joint, and dental implant surgical robots.

Currently, Jianjia Medical's ARTHROBOT hip replacement surgical robot and knee replacement surgical robot have obtained the third-class medical device registration certificate. Among them, the hip replacement surgical robot has won the bidding and procurement projects of 6 hospitals. The knee replacement surgical robot has been approved for a short time and the product is still in the market expansion stage.

The remaining ARTHROBOT hip-knee compatible surgical robot, ARTHROBOT multi-indication surgical robot, THETA dental implant surgical robot and YOZX full orthopedic surgical robot are all in the registration application or research and development stage.

In terms of financial data, Jianjia Medical has also not been able to get rid of the common problem of losses among surgical robot companies. As its main products are still in the research and development and commercialization preparation stage, its main business is in a state of zero revenue and continues to lose money. From 2019 to 2021 and from January to September 2022, Jianjia Medical's operating income was 106,800 yuan, 291,300 yuan, 0 yuan, and 0 yuan, respectively, and its net profit was -32.2809 million yuan, -49.9192 million yuan, -99.1821 million yuan, and -277 million yuan, respectively. The cumulative loss in more than three years was 458 million yuan.

The continued losses have brought great financial pressure to Jianjia Medical. From 2019 to 2021 and from January to September 2022, the net cash flow generated by the company's operating activities was -9.091 million yuan, -39.2418 million yuan, -70.24 million yuan and -116 million yuan, respectively, with a cumulative total of -234 million yuan. The company is in a state of continuous cash outflow, and the cash flow gap continues to expand.

Jianjia Medical admitted that before its successful listing, the company's operating capital mainly relied on external financing. If the expenses required for operating development exceeded the available external financing, it would put pressure on the company's financial situation.

Jianjia Medical plans to raise 1.5 billion yuan through its IPO, which will be mainly used for the research and development of surgical robot technology, the construction of R&D centers, the construction of production bases for surgical robots and supporting equipment, the construction of marketing networks, and the replenishment of working capital. If it fails to successfully go public, cash flow pressure will continue to expand.

In terms of financing, from 2019 to 2022, Jianjia Medical has received five rounds of financing, with a total financing of over RMB 670 million, including a number of star capitals such as Baidu Ventures, Hillhouse Capital, Softbank, Fosun Pharma, and Tiger Global.