China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>We compiled the public sector bidding result of medical robots in the past one and half years. </li>
<li>Result shows market leaders reinforcing their shares in laparoscopic and orthopaedic robots but in neurosurgery a new challenger has risen</li>
<li>We reiterate the view domestic substitution will likely occur in areas like puncture, natural orifice and microsurgery, which will require new core competencies in machine vision, haptic feedback and AR/VR.</li>
</ul>


We compiled the public sector bidding result of medical robots in the past one and half years. 
Result shows market leaders reinforcing their shares in laparoscopic and orthopaedic robots but in neurosurgery a new challenger has risen
We reiterate the view domestic substitution will likely occur in areas like puncture, natural orifice and microsurgery, which will require new core competencies in machine vision, haptic feedback and AR/VR.


[Blue Lotus Heathcare Sector Update]: Domestic Substitution Takes Nascent Root in Med-Bots

<ul>
<li>2252HK:   NHC issued the "14th Five-Year Plan for Large-Scale Medical Equipment Allocation" ,  the planned quota of laparoscopic robots is slightly lower than our estimated (-)</li>
<li>1801HK/LEGN:Innovent/ISAO co-developed CAR-T received approval in China ahead   of Legend’s CARVIKTI, might try to squeeze in NDRL list this year (+)</li>
<li>LKNCY: Luckin Coffee reported 50mn monthly transacting customers in June(/)</li>
</ul>


2252HK:   NHC issued the "14th Five-Year Plan for Large-Scale Medical Equipment Allocation" ,  the planned quota of laparoscopic robots is slightly lower than our estimated (-)
1801HK/LEGN:Innovent/ISAO co-developed CAR-T received approval in China ahead   of Legend’s CARVIKTI, might try to squeeze in NDRL list this year (+)
LKNCY: Luckin Coffee reported 50mn monthly transacting customers in June(/)


China TMT Update Jul.4-2252HK/1801HK/LEGN/LKNCY:14th Five-Year Plan for Medical Equipment Allocation

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>The National Health Commission released "14th Five-Year Plan for the Configuration of Large Medical Equipment", which should drive the upgrading of the whole industry chain and accelerate the import substitution.</li>
<li>The gap between Chinese and Western hospitals can lead to many differences in the logic of future commercialization, such as surgical robots and other high-priced innovative medical devices in China.</li>
<li>The efficacy/safety standards of GLP-1 drugs have been raised sufficiently high. If latecomers’ products fail to be better than Semaglutide/Tirzepatide/Orforglipron, it’s difficult to gain market share through "fast-follow strategy".</li>
</ul>


The National Health Commission released "14th Five-Year Plan for the Configuration of Large Medical Equipment", which should drive the upgrading of the whole industry chain and accelerate the import substitution.
The gap between Chinese and Western hospitals can lead to many differences in the logic of future commercialization, such as surgical robots and other high-priced innovative medical devices in China.
The efficacy/safety standards of GLP-1 drugs have been raised sufficiently high. If latecomers’ products fail to be better than Semaglutide/Tirzepatide/Orforglipron, it’s difficult to gain market share through "fast-follow strategy".


China Healthcare Weekly (Jun.30)-Surgical Robots, Medical Equipment New Policy, Pfizer's Frustration

<ul>
<li>Tencent: A summary of recent WeChat Mini Games conference: Ecosystem, Content, and Party Games</li>
<li>BABA: Alibaba announces replacement of CEO / Chairman Daniel Zhang.</li>
<li>ISRG/2252.hk: Da Vinci 4th generation surgical robots approved by CDE, to start local production in 2026</li>
</ul>


Tencent: A summary of recent WeChat Mini Games conference: Ecosystem, Content, and Party Games
BABA: Alibaba announces replacement of CEO / Chairman Daniel Zhang.
ISRG/2252.hk: Da Vinci 4th generation surgical robots approved by CDE, to start local production in 2026


China TMT Update June 21:Tencent/Baba/ISRG/2252.hk:Mini Games/Baba New Management/Surgical Robots

Equity Capital Markets

MicroPort Cardiac Rhythm Management / Equity Capital Markets

<ul>
<li>MicroPort CRM got into CRM device field with global layout mainly through M&amp;A. However, revenue growth in the past three years was unsatisfactory and losses were increasing year by year.</li>
<li>The situation where Boston Scientific/Medtronic/Abbott dominate CRM device overseas markets wouldn’t change. Although China market has big potential theoretically, the actual space remains to be seen due to various challenges.</li>
<li>This IPO application could be aimed at achieving the terms of redemption agreement. Even MicroPort CRM is not in good shape, it is still better than Microport’s other listed subsidiaries.  </li>
</ul>


MicroPort CRM got into CRM device field with global layout mainly through M&amp;A. However, revenue growth in the past three years was unsatisfactory and losses were increasing year by year.
The situation where Boston Scientific/Medtronic/Abbott dominate CRM device overseas markets wouldn’t change. Although China market has big potential theoretically, the actual space remains to be seen due to various challenges.
This IPO application could be aimed at achieving the terms of redemption agreement. Even MicroPort CRM is not in good shape, it is still better than Microport’s other listed subsidiaries.  


Pre IPO MicroPort Cardiac Rhythm Management - The Industry, the Business and the Challenges Ahead

China

Shanghai MicroPort MedBot Group Co Ltd manufactures and sells medical equipment. The Companu produces and sells laparoscopic surgery robots, orthopedic surgical robots, and other products. Shanghai MicroPort MedBot Group markets its products throughout China.

Shanghai MicroPort MedBot Group (2252 HK)

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Shanghai MicroPort MedBot Group (2252 HK)

[Blue Lotus Heathcare Sector Update]: Domestic Substitution Takes Nascent Root in Med-Bots

Domestic substitution will likely occur in areas like puncture, natural orifice and microsurgery, which will require new core competencies in...

Blue Lotus Research Institute

China TMT Update Jul.4-2252HK/1801HK/LEGN/LKNCY:14th Five-Year Plan for Medical Equipment Allocation

2252HK: "14th Five-Year Plan for Medical Equipment Allocation" , (-) 1801HK/LEGN: CAR-T received approval (+) LKNCY: Luckin Coffee reported 50mn...

Blue Lotus Research Institute

China Healthcare Weekly (Jun.30)-Surgical Robots, Medical Equipment New Policy, Pfizer's Frustration

National Health Commission issued new policy of large medical equipment.The truth of hospital change the commercialization outlook of surgical...

Xinyao (Criss) Wang

China TMT Update June 21:Tencent/Baba/ISRG/2252.hk:Mini Games/Baba New Management/Surgical Robots

Tencent: A summary of recent WeChat Mini Games conference/BABA: Alibaba announces replacement of CEO; ISRG/2252.hk: Da Vinci 4th generation...

Blue Lotus Research Institute

Pre IPO MicroPort Cardiac Rhythm Management - The Industry, the Business and the Challenges Ahead

MicroPort CRM's' business layout mainly comes from the acquisition of LivaNova, but it's hard to achieve breakthrough in market share. The Company...

Xinyao (Criss) Wang

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