(Yicai) Oct. 15 -- Mindray Bio-Medical Electronics, a major Chinese medical device manufacturer, plans a secondary listing in Hong Kong to strengthen its international business and counter the impact of weaker domestic performance.

Mindray intends to issue new shares and list on the Main Board of the Hong Kong Stock Exchange to advance its globalization strategy, build an international capital platform, and enhance its capital strength, the Shenzhen-based company announced yesterday.

The move confirms earlier market reports. In July, Bloomberg said Mindray was considering a Hong Kong secondary listing to raise at least USD1 billion.

Founded in 1991, Mindray is a leading supplier of medical devices, with products spanning in vitro diagnostics, medical imaging, patient monitoring, and life support systems. Due to sluggish demand for medical equipment tenders from public hospitals and fierce competition, the firm’s profits have declined for four straight quarters since the third quarter of last year.

In the first half of this year, Mindray’s net profit fell 33 percent from a year earlier to CNY5.1 billion (USD716 million), while revenue dropped 18 percent to CNY16.7 billion (USD2.3 billion).

To address domestic market headwinds, Mindray has accelerated its overseas expansion. International revenue reached CNY8.3 billion in the first half, accounting for nearly half of total revenue, up about 11 percentage points from a year earlier.

With medical equipment tenders recovering in China, Mindray expects revenue growth to resume in the third quarter. The company also anticipates faster expansion in overseas markets, particularly in developing economies, according to its investor relations activity report released yesterday.

Mindray [SHE: 300760] closed down 0.1 percent at CNY230.5 (USD32.40) today, down more than 50 percent from its all-time high in July 2021.

Editors: Dou Shicong, Emmi Laine