Analysis of Coverage Rate of Chunli Medical's Spinal Implants in County-Level Hospitals

Based on my search and analysis, specific publicly available data on the growth rate of coverage of Chunli Medical’s spinal implants in county-level hospitals is very limited. Below is the relevant information I was able to collect:

• A Stock Code: 688236 (STAR Market, Shanghai Stock Exchange)
• HK Stock Code: 01858.HK
• Main Business: R&D, production and sales of orthopedic medical devices such as joint, spinal and sports medicine products[1]

• Chunli Medical has established a distribution network covering all provinces, municipalities directly under the Central Government, and autonomous regions in China[2]
• The company’s terminal sales are mainly focused on tertiary and secondary hospitals[3]
• According to public information, the number of tertiary hospitals covered by Chunli Medical in 2020 was 1,187, accounting for approximately 25.92%[2]

• From an industry comparison perspective, Chunli Medical’s main competitors such as Aide Technology clearly focus on the sinking medical market in third-tier and lower cities, with an emphasis on county and municipal-level primary hospitals[2]
• The number of Grade A tertiary hospitals covered by Aide Technology in 2024 was 616, accounting for 18.17%, but this is only industry data[2]

• Revenue from spinal products has grown rapidly, reaching RMB 41.11 million in the first half of 2022, representing a significant year-on-year increase of 122%[3]
• The proportion of spinal products in the company’s revenue is relatively low, accounting for approximately 10% before the volume-based procurement[3]

• The national volume-based procurement of spinal implants was implemented in January 2023, with an average price reduction of 84%[3]
• Chunli Medical won bids for all 8 product system categories in the national volume-based procurement of spinal implants[3]

1. Competitive Landscape
   : The county-level hospital market is mainly occupied by enterprises focused on the sinking market such as Aide Technology[2]
2. Price Pressure
   : Sharp price cuts under the volume-based procurement policy have restricted the profit space of enterprises in the primary market[3]

1. Policy Support
   : The national hierarchical diagnosis and treatment system promotes the orderly sinking of medical resources[2]
2. Market Demand
   : The primary market will become the main driver of growth in the orthopedic market in the future[2]

• Currently, specific coverage rate data of Chunli Medical’s spinal implants in county-level hospitals cannot be obtained through public channels
• The company’s annual reports and announcements do not disclose detailed product sales breakdown by hospital level

• It is expected that with the promotion of the national medical resource sinking policy, the construction of orthopedic capabilities in county-level hospitals will continue to be strengthened, and demand in the primary market will be gradually released
• Relying on its existing coverage advantages in tertiary and secondary hospitals, Chunli Medical is expected to gradually extend its penetration to county-level hospitals through its distributor network

For more detailed data on coverage rate in county-level hospitals, it is recommended to:

1. Pay attention to the subsequent periodic reports disclosed by the company
2. Contact the company’s investor relations department directly for information
3. Refer to professional reports from industry research institutions

[1] Chunli Medical 2024 Annual Report Summary - Hong Kong Stock Exchange
[2] Aide Technology Listing Application Documents - Eastmoney.com
[3] Chunli Medical Initial Coverage Report - SPDB International