Good News on Listing | Frost & Sullivan Congratulates Beijing Yihé Jiayè Medical Technology Co., Ltd. for Successfully Listing on the GEM

Beijing Yihé Jiayè Medical Technology Co., Ltd. (hereinafter referred to as 'Yihé Jiayè') successfully went public on November 1, 2022, issuing a total of 16 million shares at an issue price of 119.88 yuan per share, raising a total actual amount of 1.918 billion yuan.

In 2020, among domestic brands in the Chinese home ventilator and ventilation mask market, the company's product share ranked first.

Among them, the domestic market share of ventilators in China accounts for 15.6%, the export market share accounts for 40.5%, the market share of ventilation masks in China accounts for 37.7%, and the export market share of ventilation masks in China accounts for 68.3%.

Global market size of home ventilators

In 2016, the global market size for home ventilators was $1.71 billion. With the continuous growth in the number of patients with respiratory and sleep-related diseases, mainly COPD and OSA, the global demand for home ventilators has also been increasing year by year. By 2020, the global market for home ventilators reached $2.71 billion. With the continuous popularization of home ventilators in emerging markets including China, it is estimated that by 2025, the global market size for home ventilators will reach $5.58 billion, with a compound annual growth rate of 15.5% from 2020 to 2025.

The competitive landscape of the global home ventilator market is highly concentrated, mainly represented by ResMed and Philips, which account for nearly 80% of the market share. Manufacturers such as Fisher & Paykel, Lüvens Therapeutics (Vanguard), DeBelle and Yihé Jiaye rank third to sixth. ResMed holds the largest market share, accounting for about 40.3% of the global market, with sales of $1.09 billion in 2020. Philips ranks second, accounting for about 37.8%, with sales reaching $1.02 billion in 2020. Next is Fisher & Paykel, accounting for about 6.6%. Yihé Jiaye's sales in 2020 were $45.34 million, accounting for about 1.7%. The remaining market competition is more dispersed, with the market share of over a hundred small and medium-sized manufacturers far below 1%.

Market scale of home ventilators in China

In recent years, due to factors such as the impact of air quality in our country and the intensification of the aging population trend, the number of chronic respiratory disease patients in China has been increasing. On the other hand, the gradual improvement in residents' living standards, enhanced awareness of health management, and increased recognition and management of chronic diseases such as OSA/COPD have greatly promoted the growth of the domestic ventilator market size. In 2016, the market size of household ventilators reached 590 million RMB, including a market size of about 250 million RMB for single-level household ventilators and 340 million RMB for dual-level household ventilators.

In 2020, a large number of home-use biphasic ventilators flowed into hospitals for the treatment of COVID-19, driving market growth in the home ventilator sector. At the same time, under the impact of the pandemic, the number of visits to respiratory and sleep departments in hospitals decreased in 2020, resulting in reduced prescriptions for home ventilators. The weakened market demand led to a decline in the sales volume of single-level home ventilators. In 2020, the market size of home ventilators reached 1.23 billion RMB, with the market size of single-level home ventilators accounting for about 530 million RMB and that of biphasic home ventilators reaching 700 million RMB.

As the epidemic is gradually being effectively controlled, the number of visits to respiratory and sleep departments has rapidly rebounded. Moreover, after the publicity and promotion during the pandemic, patients' awareness of ventilators has deepened, further releasing medical demand and re-driving the growth of the home ventilator market. With the further enhancement of patients' health management awareness and their increasing understanding of the treatment of respiratory and sleep diseases, market growth rates will gradually recover. By 2025, the market size of home ventilators will grow to 3.33 billion yuan, including a single-level market size of 1.62 billion yuan and a dual-level market size of 1.71 billion yuan.

Similar to the global market, Philips and ResMed are the largest producers in the domestic home ventilator market, accounting for 28.4% and 26.6% of the market share respectively in 2020. Yihé Jiayè ranks third with a market share of 15.6%. The remaining domestic companies account for a smaller proportion and are relatively dispersed.

China's home-use ventilator export market scale

In 2020, the market scale of China's home-use ventilator exports was about 300 million RMB. With the continuous spread of the overseas pandemic and high global demand for ventilators, the market scale of China's home-use ventilator exports is expected to continue growing until the pandemic eases and is controlled. With the continuous improvement in product quality of domestic manufacturers and the expansion of the overseas market scale, it is estimated that by 2025, the market scale of China's home-use ventilator exports will climb to 600 million RMB, with a compound annual growth rate of 14.8% from 2020 to 2025.

In 2020, the main manufacturers of home ventilators exported to China include Yihé Jiaye, Yuwell Medical,Rongxin MedicalPending. Affected by the pandemic, Yihé Jiayè's household ventilator export market share accounted for 40.5%, with sales reaching 120 million RMB in 2020. Yuwell Medical has a market share of 35.9%, ranking second, with sales reaching 110 million RMB in 2020. Rongxin Medical ranks third, with its market share accounting for about 19.2%.

Market scale of ventilator masks in China

The market scale of ventilator masks in China increased from about 69.7 million yuan in 2016 to about 190 million yuan in 2020, with an annual compound growth rate of 28.7%. Affected by the pandemic, domestic demand for ventilator masks has climbed. In addition, as residents' income levels improve, home-use ventilators are becoming increasingly popular in China. Patients' awareness and willingness to pay for ventilator mask replacements will also continue to strengthen. It is estimated that by 2025, the market scale of ventilator masks in China will rise to 460 million yuan.

In 2020, the main domestic ventilator mask manufacturers included Yihé Jiaye, Philips Respironics, ResMed, Fisher & Paykel, Lüvistain (Vanguard), and Dongguan Yida, among more than a dozen others. Yihé Jiaye ranked first in the domestic market share in 2020, with sales reaching 72.08 million RMB, accounting for about 37.7%. Philips Respironics followed with a market share of 23.4%. ResMed ranked third with a market share of 20.2%.

China Ventilator Mask Export Market Size

The export market scale of ventilator masks in China soared from 17.8 million yuan in 2016 to about 84.4 million yuan in 2020, with an annual compound growth rate of 47.6%. Affected by the pandemic, foreign demand for ventilator masks has increased. At the same time, as the export scale of the Chinese home-use ventilator market continues to grow, the export scale of ventilator masks, which are used in conjunction with ventilators and require frequent replacement, will also increase accordingly. It is expected that by 2025, the export market scale of ventilator masks in China will grow to about 180 million yuan.

As a major domestic exporter of ventilation masks, Yihé Jiaye's export sales in 2020 reached 57.68 million RMB, accounting for as high as 68.3% of the market share. Hupule only accounted for 8.5%, ranking second. In second place is Biyang Medical, which accounted for about 7.7%.