(Yicai) Sept. 19 -- Taimei Medical Technology’s application for an initial public offering in Hong Kong has passed muster with the local stock exchange, following two failed attempts by the Chinese provider of digital solutions for the life sciences sector to list in Shanghai.

Taimei did not specify how much it aims to raise in the IPO, but indicated in its Sept. 16 filing with the Hong Kong Stock Exchange that the funds will be used to optimize and upgrade its digital collaboration platforms, TrialOS and PharmaOS.

The proceeds will also go to strengthening the Jiaxing-based company’s core technologies and research capabilities, including artificial intelligence and big data, as well as marketing efforts and potential acquisitions, it said.

Founded in 2013, Taimei tried to go public on Shanghai’s tech-heavy Star Market in 2021 and last year, but both attempts failed because the listing committee was concerned about the firm’s business model, citing slow revenue growth, narrowing gross margins, high operating expenses, and a low share of revenue from software-as-a-service products.

Taimei is one of China’s leading providers of cloud-based SaaS for drugmakers and medical device companies. Based on cloud computing and big data, its platforms help optimize clinical trials and pharmaceutical processes, supporting firms throughout the drug product lifecycle.

It has completed eight financing rounds, raising over CNY3 billion (USD413 million) from investors such as Yunfeng Capital, SoftBank Group, and Hillhouse Capital.

Founder Zhao Lu is Taimei’s largest shareholder, with a 17.3 percent direct stake. He and his wife hold 33.3 percent of the company’s total equity. Tencent Holdings owns 12 percent.

Taimei had net losses of CNY356 million and CNY423 million (USD50.4 million and USD59.8 million) last year and in 2022 on revenues of CNY573 million and CNY549 million, respectively, according to the bourse filing. In the first quarter of this year, its net loss was CNY132 million and revenue was CNY118 million. As of March 31, Taimei had 783 staff, compared with 1,511 a year ago.

Looking ahead, the firm aims for long-term profitability through continued revenue growth, improved gross profit margin, and enhanced efficiency, Taimei said in response to the Shanghai Stock Exchange’s listing committee, adding that it also plans to expand its customer base, boost customer retention and spending, control costs, and improve operational efficiency.

China International Capital Corporation and Morgan Stanley are the Hong Kong IPO’s joint sponsors.

Editor: Futura Costaglione