Smartee’s IPO on the Shenzhen Stock Exchange has been accepted, with plans to raise 901 million yuan

Source: Shenzhen Stock Exchange

DentalGoodNews｜June 29, 2026, Zhejiang Zhengya Dental Co., Ltd. (hereinafter referred to as "Smartee") IPO application on the Growth Enterprise Market (GEM) was accepted by the Shenzhen Stock Exchange. The company plans to publicly issue no less than 40.01 million shares and no more than 63.55 million shares, with a proposed fundraising of RMB 901 million, all of which will be allocated to four areas: expansion of customized invisible orthodontic aligners (RMB 396 million), upgrading and construction of R&D centers (RMB 122 million), marketing and promotion construction (RMB 283 million), and supplementary working capital (RMB 100 million).

Source: Smartee Dental IPO Prospectus

Smartee was founded in 2004, specializing in the R&D of digital invisible orthodontic original technologies and the manufacturing of customized invisible aligners, with ODM capabilities. As of the end of the reporting period, it had obtained 763 authorized patents domestically and internationally, including 193 invention patents.

Source: Smartee Dental IPO Prospectus

In terms of market structure, the prospectus cited a research report from Biaodian Information (Minenet) showing that in 2025, the number of domestic invisible orthodontic cases was dominated by three companies: Angelalign Technology Inc., Smartee, and Align Technology, Inc., with a combined market share of over 90% in case numbers. Smartee recorded 206,700 domestic cases in 2025, holding a market share of 28.26%, ranking second in the industry. Additionally, the company disclosed in the prospectus that its domestic case numbers during the reporting period had a compound annual growth rate of nearly 20%, the fastest among leading industry players.

Source: Smartee Dental IPO Prospectus

In terms of financial data, from 2023 to 2025, the company's operating revenue grew from RMB 648 million to RMB 938 million. Net Profit Attributable to Shareholders of the Parent Company for the three years were RMB 136 million, RMB 44.3646 million, and RMB 127 million, respectively. Net Profit Attributable to Shareholders of the Parent Company excluding non-recurring gains and losses was RMB -14.4607 million in 2023, rebounded to RMB 28.2508 million in 2024, and further increased to RMB 102 million in 2025. During the same period, Operating Cash Flow (OCF) net amount ranged between RMB 220 million and RMB 260 million. It should be noted that as of December 31, 2025, the consolidated retained earnings were still RMB -10.1028 million, due to historical accumulated losses from before the reporting period that had not yet been fully offset.

Source: Smartee Dental IPO Prospectus

Regarding the expense structure, the prospectus disclosed that from 2023 to 2025, the ratio of selling expenses to operating revenue decreased year by year from 32.03% to 26.34%. These expenses primarily consist of employee compensation, advertising and marketing promotion fees, business entertainment expenses, and training costs, with these four items collectively accounting for over 90% of total selling expenses in each period.

The ratio of administrative expenses to operating revenue decreased from 14.27% to 9.73%. Among these, employee compensation, share-based payments, and depreciation and amortization collectively accounted for 83.37%, 83.43%, and 81.02% in each period, respectively. The proportion of administrative employee compensation rose from 32.16% to 42.29% over the three years, mainly due to business expansion driving an increase in the administrative workforce. Share-based payments dropped to RMB 21.6487 million in 2024 (primarily due to some incentivized employees leaving) and slightly rebounded to RMB 22.4997 million in 2025. Depreciation and amortization contracted to RMB 12.843 million in 2025, mainly due to the termination of leases for some rented office spaces after the completion of the Zhejiang production base.

R&D expenses mainly consist of employee compensation and outsourced R&D costs, with the ratio decreasing from 9.03% to 6.10%. This was primarily due to the successful transformation of core technologies driving rapid growth in main business revenue, leading to economies of scale. In 2023 and 2024, the company's R&D expense ratio was higher than or roughly equal to the average of comparable companies; in 2025, it was slightly lower than the average of comparable companies in the same industry.

In terms of shareholder agreement arrangements, the prospectus disclosed that on May 30, 2026, the company signed a supplementary agreement with all shareholders, stipulating that upon the acceptance of the IPO application by the Shenzhen Stock Exchange, the actual controller's repurchase obligations and investors' special rights would automatically terminate. The agreement also includes a reinstatement clause: if the company suspends or withdraws the IPO application, fails to complete the listing within the regulatory deadline, or if circumstances reasonably anticipated by the underwriters occur, the above special rights will automatically regain full effect (excluding the right to add the company as a repurchase obligor).

In terms of international business, the company has established an overseas production base in Madrid, Spain, with products exported to over 50 countries and regions worldwide. The prospectus also disclosed that as of the signing date, the company has one pending patent infringement lawsuit, where the company is the defendant, with a claimed amount of RMB 10 million plus litigation costs. The patent in question expired in October 2024, and the final outcome of the judgment remains uncertain.

Regarding the equity structure, the prospectus disclosed that founder Yao Junfeng directly holds 20.91% of the company's shares, and indirectly holds a portion of equity through Nuodun Medical and multiple employee stock ownership platforms. Additionally, through concerted action arrangements, he effectively controls 2.82% held by Anyi Shenyi, giving him actual control over more than 40% of the voting rights. International dental equipment company Straumann (Institut Straumann AG) holds 7.00% of the shares, listed among the shareholders.