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Bosheng Medical Devices has been listed on the Innovation Layer of the New Third Board, embarking on a new journey of quality improvement and accelerated growth.

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Time：2022-08-09

In the height of summer, all things flourish and thrive. On the morning of July 8, Jiangsu Bosheng Medical New Materials Co., Ltd., a subsidiary of Shijiazhuang No.4 Pharmaceutical Group, experienced a double celebration: Bosheng Medical Materials (stock code: 873710) was listed on the Innovation Layer, and the groundbreaking ceremony for its new biomembrane workshop was held simultaneously.

Bosheng Medical Devices has been listed on the Innovation Layer of the New Third Board, embarking on a new journey of quality improvement and accelerated growth.

In the height of summer, all things flourish and thrive. On the morning of July 8, Jiangsu Bosheng Medical New Materials Co., Ltd., a subsidiary of Shijiazhuang Fourth Pharmaceutical Group, experienced a double celebration: Bosheng Medical Materials (stock code: 873710) was listed on the Innovation Layer, and the groundbreaking ceremony for its new biomembrane workshop was held simultaneously.

Listing on the Innovation Layer of the New Third Board signifies faster growth and a healthier development model. For Bosheng Medical Devices, listing is not the company’s ultimate goal—it’s merely an important milestone and a refueling stop along the way. It is understood that Bosheng Medical Devices plans to continuously explore new paths, new models, and new frameworks for innovative development, focusing on its industrial strengths and key areas. By fully leveraging the power of the capital market, Bosheng Medical Devices aims to achieve high-quality, leapfrog improvements in all its endeavors, further expand and strengthen its business, comprehensively enhance its market competitiveness, and sustainably consolidate its position in the pharmaceutical packaging industry.

Milestone and New Starting Point

Standardized management strengthens development momentum.

Bosheng Medical Devices is a company specializing in the R&D, production, and sales of innovative medical packaging materials. Its key products—including butyl rubber stoppers, polyisoprene gaskets, and multilayer co-extruded films—are widely used in fields such as intravenous solutions, antibiotics, lyophilized products, blood collection devices, biological products, and medical devices. These products protect pharmaceuticals from external environmental factors and help ensure drug quality and public medication safety. By listing on the Innovation Layer of the New Third Board and publicly offering its shares for transfer, Bosheng Medical Devices has officially become a publicly listed company.

It is understood that Bosheng Medical Devices is an important link in the pharmaceutical industry chain of Shijiazhuang Fourth Pharmaceutical Group. Since its acquisition in 2015, the Group has continuously increased its investment and support for Bosheng Medical Devices in areas such as product R&D, technological upgrades, and project construction. At the same time, the Group has clearly defined Bosheng Medical Devices’ strategic development direction: to spin off and go public independently, thereby entering the capital markets.

Listing on the Innovation Layer of the New Third Board marks both a milestone and a new starting point. Wu Hengyao, President of Shijiazhuang Siyao Group, stated that Bosheng Medical Devices has ushered in a new era of integrated development—blending product markets with capital markets. He expressed hope that the board of directors and leadership team of Bosheng Medical Devices will remain true to their original aspiration of pursuing industry-driven goodness and empowering value, respect the market, hold rules in high esteem, strictly adhere to bottom lines, fulfill their responsibilities, and rise to the dual challenges posed by both product and capital markets.

According to reports, listing on the New Third Board has had the most significant impact on Bosheng Medical Devices in terms of enhancing its brand and increasing its visibility. In recent years, the company’s medical rubber stoppers and multilayer co-extruded films have gained considerable recognition domestically thanks to their excellent and stable quality and performance. However, given that China’s medical packaging materials manufacturing industry as a whole developed relatively late, compared with internationally renowned industry leaders such as the U.S.-based CCL and Sidel, the company still lags behind in certain aspects, including global brand awareness. Leveraging the capital market will further help the company enhance its brand value.

Second, it helps broaden financing channels and reduce financing costs. Factory upgrades toward automation and intelligentization, further strengthening R&D capabilities, as well as developing new products and cultivating related markets, typically require substantial capital investment. After listing, including future entry into the A-share market, the company will have access to a variety of financing channels and lower-cost financing options.

Furthermore, this approach helps broaden sales channels and reduce communication costs. Under the current system of drug marketing authorization holders, pharmaceutical companies are stepping up on-site audits of suppliers and tend to select industry-leading enterprises that boast strong overall capabilities, advanced technological expertise, robust large-scale production capacity, stable product quality, and high brand recognition when choosing medical packaging material suppliers. After listing, both existing and potential customers will have access to standardized and publicly available information on key aspects such as corporate governance, financial performance, quality control capabilities, and R&D strength, thereby significantly reducing communication costs.

Finally, this will help the company further enhance its core competitiveness. After going public, each of the company’s key performance indicators will be benchmarked against those of its industry peers. To further strengthen its core competitiveness and address any shortcomings, the company will continue to make concerted efforts in areas such as improving governance standards, boosting productivity and labor efficiency, reducing production costs, attracting top-tier talent, enhancing R&D capabilities, and elevating product quality. Only in this way can we drive the company’s development efficiently and healthily, while safeguarding the interests of our shareholders.

A New Journey to Enhance Quality and Boost Efficiency

Enhance value through variety and innovation.

According to incomplete statistics, a total of 515 companies have recently been newly added to the Innovation Layer of the New Third Board. The total number of companies in the Innovation Layer has reached 1,696, marking the highest level since the implementation of the tiered system. Both the scale and quality of these tiers have significantly improved. From an industry perspective, most of the newly added companies are concentrated in advanced sectors such as information technology, high-end equipment manufacturing, new energy, new materials, and biopharmaceuticals.

According to industry insiders, the reforms of the New Third Board continue to deepen, and the overall quality of companies moving up to higher tiers has significantly improved. The roles of the Basic Tier and Innovation Tier—as the “reserve force” and “training ground” for listing on the Beijing Stock Exchange—are being further strengthened, which will better support the innovative development of small and medium-sized enterprises.

“Listing on the Innovation Layer is only a phased goal; ultimately, Bosheng Medical Devices aims to transfer to the main board and enter the A-share market,” said Zhang Guozhen, Chairman of Bosheng Medical Devices. Looking ahead, Bosheng Medical Devices will, as required, strengthen corporate governance, ensure transparent information disclosure, and standardize operational practices, thereby improving its business performance and profitability. The company will also carry out its IPO work on the Beijing Stock Exchange according to the schedule agreed upon with its sponsor institution.

Since its establishment in 2001, Bosheng Medical Devices has consistently adhered to stringent product quality control and quality enhancement measures. The company continuously invests in the research and development of new medical packaging materials and has obtained relevant certifications, including those for its quality management system. To ensure high-quality products and enhance customer satisfaction, the company has established a Quality Management Department responsible for inspecting raw materials, finished products, and overseeing the entire production process. The company places particular emphasis on preventive quality control, rigorously screening every stage—from raw material procurement and production to the dispatch of finished goods—thus guaranteeing the superior quality of its products.

Leveraging its advantages in product quality, brand recognition, and technological R&D, the company has established long-term, stable partnerships with numerous renowned pharmaceutical companies, including Sinopharm Group, Hengrui Medicine, Yangtze River Pharmaceutical Group, Qilu Pharmaceutical, Zhengda Tianqing, Kolon Pharmaceutical, and Harbin Pharmaceutical Group.

In 2021, the company achieved an operating revenue of 295 million yuan (excluding tax) and a net profit of 39.09 million yuan. Among these, revenue from rubber stoppers and gaskets reached 171 million yuan, while revenue from infusion films and biological membranes totaled 121 million yuan. Both categories showed significant growth compared to the 2020 fiscal year.

In the future, Boshi Medical Devices, leveraging its independently developed core technologies and through continuous R&D investment, will closely follow the trends and developments in downstream industries, successfully developing medical packaging material products that meet customer needs. This will enable the company to continuously strengthen its profitability and enhance its value through quality and innovation.

Originally published in: Pharmaceutical Economic Daily

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