Shenzhen Edge Medical Co., Ltd.

Date of Prospectus: December 30, 2025

Shenzhen Edge Medical’s Landmark Hong Kong IPO: Investor Analysis, Financials, and Strategic Outlook

IPO Snapshot

Symbol: 2675 (Main Board, Hong Kong Stock Exchange)

Offer Price: HK\$43.24 per Offer Share

Total Offer Size: 27,722,200 H Shares (initial), plus up to 4,158,300 H Shares via Over-allotment Option (15% greenshoe)

Post-IPO Outstanding Shares: 387,722,200 Shares (assuming Over-allotment Option not exercised)

Market Capitalization (Post-IPO): HK\$16,765 million

Market Capitalization of H Shares (Post-IPO): HK\$13,992.6 million

Minimum Application: 100 H Shares (HK\$4,367.61 per lot including all fees)

Use of Proceeds: Growth-Driven Biotechnology Expansion

Edge Medical aims to deploy IPO proceeds for:

• Research & Development: Expansion and clinical validation of core surgical robot systems.
• Manufacturing Capacity: Building new production lines and purchasing equipment.
• Commercialization Activities: Marketing, distribution, and regulatory engagement for product launches.
• General Working Capital: Supporting ongoing operations and future expansion.

Approximately 93.36% of pre-IPO proceeds have already been utilized for business growth, with remaining capital reserved for production scaling and R&D acceleration. This signals a robust growth-driven strategy, not deleveraging.

Dividend Policy

No formal dividend policy or payout ratio. Edge Medical has not declared or paid dividends during its track record period and does not intend to pay dividends in the near future. Any future distributions will be subject to profitability, statutory requirements, and Board/Shareholder approval.

Placement and Issuance Breakdown

• Hong Kong Public Offering: Open to individual investors via electronic application channels.
• International Offering: Targeted at institutional/professional investors, including QIBs in the US via Rule 144A and offshore investors under Regulation S.
• Cornerstone Investors: Subscribed for 13,494,600 H Shares (48.7% of Offer Shares, 3.5% of post-IPO share capital, assuming greenshoe not exercised).
• Pre-IPO Investors: Six rounds of pre-IPO funding totaling approximately RMB2,050 million; subject to a 12-month lock-up post-listing.

Investor Participation & Book Quality

Cornerstone investors include OrbiMed Genesis, Tencent, ChinaAMC, LYFE Capital, China Alpha, Sage Partners, Mega Prime, Poly Platinum, among others. Each has subscribed at the offer price with a six-month lock-up. The high cornerstone allocation (48.7% of Offer Shares) indicates strong institutional interest and potential for robust first-day demand.

Pre-IPO Investors (e.g., LYFE Capital, Legend Star) hold material stakes (4.89% and 1.26% respectively) and are locked up for 12 months post-listing.

There is no evidence of pre-listing disposals by early shareholders within the disclosed information.

Given the substantial cornerstone participation and lack of pre-listing sales, book quality appears high and supports strong initial trading prospects.

Deal Parties & Structure

Joint Sponsors, Overall Coordinators, Joint Global Coordinators, Joint Bookrunners, and Joint Lead Managers:

• Morgan Stanley Asia Limited
• GF Capital (Hong Kong) Limited
• China International Capital Corporation Hong Kong Securities Limited

Underwriters: Hong Kong Underwriters and International Underwriters (named in the document). Hong Kong Public Offering is fully underwritten; International Offering expected to be fully underwritten.

Greenshoe (Over-allotment Option): Up to 4,158,300 H Shares (15% of initial Offer Shares) may be issued post-listing if demand warrants.

Given the presence of top-tier global banks and full underwriting, listing-day performance appears well-supported by deal structure and syndicate quality.

Company Overview

Business Model: Edge Medical is a biotechnology company focused on the discovery, development, manufacturing, and commercialization of cutting-edge endoscopic surgical robot systems.

Key Products: Edge Multi-Port Endoscopic Surgical Robot and Edge Single-Port Endoscopic Surgical Robot, designed for urologic, gynecologic, general, thoracic, pediatric, cardiac, and ENT telesurgeries.

Revenue Streams: Sales of surgical robots, clinical trials, commercialization and distribution activities.

Customer Segments: Hospitals, medical institutions, surgeons, and healthcare providers primarily in China (PRC).

Geographies: Majority of operations and business located in the PRC.

Industry/Sector: Biotech/Medical Robotics. The company seeks listing under Chapter 18A as it does not yet meet profitability/revenue thresholds of Rule 8.05.

Note: Edge Medical has incurred significant operating losses since inception and exhibits negative net operating cash flow. No dividends have been paid or declared.

Debt Levels: No material debt; no outstanding loans or guarantees granted by Controlling Shareholders.

Market Position & Competitive Advantages

Edge Medical is among the first Chinese companies to approach commercial launch of multi-port and single-port surgical robots. The company leverages proprietary technology and strong IP portfolio. Market share and ranking are not disclosed, but brand is supported by institutional investment and regulatory milestones.

Management Team

Directors and Supervisors: Named in the prospectus; collective and individual responsibility for full prospectus content. Key senior management and Board committees (Audit, Nomination, Remuneration) are in place, with industry experience as outlined.

Trends, Timing & Environment

Sector Trends: Robust growth in medical robotics and surgical automation, driven by demand for minimally invasive surgery, hospital efficiency, and telemedicine capabilities.

Recent Developments: Continuous advancement in product development and clinical validation since 2025.

Economic/Market Environment: Differences in legal, economic, and regulatory frameworks between PRC and Hong Kong noted; risk factors and regulatory overview provided in detail. The IPO is strategically timed to capitalize on increased investor appetite for biotech listings under Chapter 18A.

Offer Period: December 30, 2025 (9:00 a.m.) to January 5, 2026 (12:00 noon). Listing Date: Expected January 8, 2026.

Overall, market conditions for this IPO appear favorable given strong cornerstone and institutional demand, clear sector momentum, and robust deal structure.

Risk Factors

• Product Development Risk: Delays or failures in clinical trials, regulatory approval, or commercialization may materially affect prospects.
• Intellectual Property Risk: Failure to obtain or maintain adequate IP protection could enable competitors to erode market share.
• Financial Risk: Significant operating losses, negative operating cash flow; no distributable reserves as of June 30, 2025; future dependency on capital markets.
• Regulatory Risk: Differences in PRC and Hong Kong frameworks; compliance and approval risks for international expansion.
• Ownership Concentration: Pre-IPO investors and Controlling Shareholders subject to 12-month lock-up; potential future share supply risk.
• No Dividend Commitment: Lack of dividend policy may limit income appeal for some investors.
• Other: Risks from macroeconomic factors, competitor actions, and supply chain dependence.

Growth Strategy

Edge Medical plans to:

• Expand product portfolio and surgical indications for core robot systems.
• Accelerate clinical evaluations and regulatory submissions.
• Build new manufacturing lines and scale production capacity.
• Advance commercialization in key hospital segments and geographies.
• Leverage proceeds to fund R&D, market entry, and operational expansion.

Most proceeds will be allocated to growth initiatives, supporting an aggressive expansion and market entry strategy.

Ownership & Lock-ups

Pre-IPO Shareholding Structure: Promoters and pre-IPO investors hold a majority of shares; Cornerstone Investors to own 3.5% post-IPO (non-greenshoe scenario).

Lock-up Periods: Pre-IPO Investors: 12 months. Cornerstone Investors: 6 months. Company/Controlling Shareholders: 6 months post-listing restrictions on share issuance/disposals.

ESOPs: No mention of employee allocation or ESOP specifics in the disclosed information.

Valuation and Peer Comparison

Issuer Metrics:

• Offer Price: HK\$43.24/share
• Net Tangible Assets per Share (pro forma): HK\$6.30
• Market Cap: HK\$16,765 million
• Dividend Yield: 0% (no policy)

No peer company metrics or sector performance tables are disclosed in this document.

Analyst Coverage & Opinions

No external analyst price targets or opinions are provided in the prospectus. Frost & Sullivan industry report referenced.

IPO Allotment Result

Final subscription outcomes by tranche are not disclosed at the time of the prospectus issuance. Allocation results will be available on www.hkexnews.hk and https://www.edgemed.cn after January 7, 2026.

Listing Outlook

Based on all disclosed factors, Edge Medical’s IPO appears strongly positioned for robust first-day trading. Substantial cornerstone and institutional participation, high book quality, and full underwriting by leading investment banks all point to healthy aftermarket support. Given the lack of dividend commitment and ongoing operating losses, short-term appreciation may be driven mainly by growth expectations and sector momentum. With a sizable greenshoe available to absorb excess demand, initial trading is likely to be firm, potentially exceeding the offer price, especially if sector and macro conditions remain favorable.

Estimated first-day trading range: HK\$43.24 (offer price) to HK\$45.00+, barring unforeseen macro or market volatility.

Prospectus Access

Website to obtain the prospectus: www.hkexnews.hk and https://www.edgemed.cn

How to Apply

• Application Channels: HK eIPO White Form service (www.hkeipo.hk) for H Share certificates; brokers/custodians via HKSCC EIPO channel.
• Application Window: Opens 9:00 a.m., December 30, 2025; closes 12:00 noon, January 5, 2026, Hong Kong time.
• Eligibility: Applicants must be 18+ and have a Hong Kong address (for eIPO White Form).
• Minimum Application: 100 H Shares per lot (HK\$4,367.61 including all fees).

For full application details and procedures, visit www.hkexnews.hk or www.hkeipo.hk for the eIPO platform.