The Zhitong Finance App learned that Tianxing Healthcare (01609) fell by more than 5%. As of press release, it was down 5.51% to HK$75.4, with a turnover of HK$2,619,800.

According to the news, the ban on 2,922,900 restricted shares held by Tianxing Medical's four cornerstone investors will be officially lifted on November 5. These shares account for 34.7% of global sales and 5.34% of the company's total issued share capital. The company went public at HK$98.50 on May 5 this year, reaching an intraday high of HK$299 on the first day. Since then, it has continued to decline, and hit a record low of HK$74.25 on October 2. The analysis points out that from the high performance on the first day of listing to the current collapse, this is actually the result of the combination of overheated market sentiment, small circulation market, and overdraft valuation levels, and a return to value.

It is worth noting that, thanks to the sales volume of implants, the core product, Tianxing Medical's revenue has grown rapidly in recent years. However, behind the high growth, Tianxing Medical is facing the impact of volume procurement policies. According to the prospectus, starting in 2024, 14 of the company's 19 implants will be included in the nationwide volume procurement of sports medicine implants. Affected by this, the average price of implants dropped from 711.9 yuan per piece in 2023 to 446.3 yuan per piece in 2024, a decrease of 37.3%.

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