"Sixty-something" Couple Takes Collieredi Public with IPO Bid, Former SEC Employee Cashes Out Millions and Exits

Couple controls 64% of the shares.

Author | Liu Junqun

Editor | Liu Qinwen

In recent years, the incidence of cancer has continued to rise, and radiotherapy, as an important treatment method, demands increasing precision. Each treatment requires the patient’s body to be precisely fixed to ensure the radiation accurately targets the lesion, which relies heavily on the support of radiotherapy positioning devices. Meanwhile, the aging population is growing, and more people need rehabilitation due to strokes, spinal cord injuries, and other conditions. Rehabilitation assistive devices have become one of their essential tools.

On March 13, 2026, Guangzhou Clarity Medical Equipment Co., Ltd. (hereinafter referred to as “Clarity”)—a company specializing in radiotherapy positioning and rehabilitation assistive devices—will undergo review by the Beijing Stock Exchange. This company, deeply engaged in the field, is facing a critical test for its listing.

As a “hidden champion” in the domestic radiotherapy positioning device market, the company’s annual revenue steadily increased from 233 million yuan in 2022 to 285 million yuan in 2024, with gross profit margins exceeding 60% for several years.

However, behind this impressive performance, there are also concerns. The gross profit margin of related distributor Wuhan Clarity is significantly lower than that of peers, raising regulatory questions about potential利益输送. The company’s actual controller, Yi Ligang, is the nephew of the company’s actual controller, Zhan Deren’s sister. Additionally, Wu Si, a former staff member of the China Securities Regulatory Commission and former secretary of Clarity, cashed out 16 million yuan just before the IPO and left, completing her equity exit only after three years, raising compliance questions.

The company is a typical “family business”: the actual controllers, Zhan Deren and his wife Li Li, jointly hold 64.93% of voting rights. Zhan Deren, who started as a health school teacher and director of the clinical laboratory at a top-tier hospital, transitioned into entrepreneurship, while his wife Li Li, with a background in the medical system, has worked in the industry for over 30 years. After decades of effort, they are now approaching the listing milestone.

01

Leading radiotherapy company with annual revenue of 280 million yuan IPO

Gross profit margin over 60%

According to the prospectus, Clarity’s main business includes the research, production, and sales of radiotherapy positioning devices and rehabilitation assistive devices. Data from Frost & Sullivan shows that in 2023, the company’s positioning products held a 42.5% market share domestically, ranking first, and a 7% share globally, ranking third.

From operational performance, the company’s revenue has steadily grown from 233 million yuan in 2022 to 285 million yuan in 2024, with 152 million yuan achieved in the first half of 2025. However, net profit has fluctuated, with figures of 69.37 million yuan, 59.92 million yuan, 67.21 million yuan, and 30.54 million yuan, respectively. Notably, 2023 saw a 13.6% year-over-year decline, mainly due to sales impact from the Russia-Ukraine conflict.

Product-wise, the main revenue comes from radiotherapy positioning devices and rehabilitation assistive devices. In 2024, revenue from radiotherapy positioning devices was 220 million yuan, accounting for 78.28% of total revenue, making it the company’s core income source. These products are ultimately sold to tumor hospitals, comprehensive hospitals’ oncology, orthopedics, and rehabilitation departments, where medical institutions provide treatment services to patients.

Source: Prospectus

In terms of sales model, the company adopts a “mainly distributor, supplemented by direct sales” approach. Distributors operate on a buyout basis, while direct sales are conducted through bidding and competitive negotiations to determine prices. In 2024, distributor sales amounted to 198 million yuan, accounting for 69.7% of revenue. Supported by product and channel synergy, the company’s gross profit margins are high, with comprehensive gross margins of 64.63%, 63.2%, 62.1%, and 61.05% over the reporting periods, consistently above 60%.

Within this sales system, the related distributor Wuhan Clarity has attracted attention. Its actual controller, Yi Ligang, is the nephew of Zhan Deren’s sister. As Clarity’s core distributor in Hubei Province, Wuhan Clarity has extensive local market coverage. Its terminal clients include top-tier hospitals such as Tongji Hospital affiliated with Huazhong University of Science and Technology, Peking Union Medical College Hospital, Wuhan University Zhongnan Hospital, among others.

During the reporting periods, Clarity sold goods to Wuhan Clarity for 2.3142 million yuan, 1.8018 million yuan, and 3.1496 million yuan, accounting for 1.52%, 1.13%, and 1.51% of the company’s revenue, respectively.

It is noteworthy that Wuhan Clarity’s gross profit margin is significantly lower than that of domestic distributors overall. From 2022 to the first half of 2025, Wuhan Clarity’s gross margins were 52.99%, 44.49%, 52.28%, and 53.32%, respectively, while the overall gross margins of domestic distributors were 65.85%, 64.02%, 63.56%, and 62.17%, showing a considerable gap.

Source: Prospectus

This situation has also drawn the Beijing Stock Exchange’s attention. In inquiries, regulators focused on the authenticity of distributor revenue and the compliance of revenue recognition, especially questioning why Wuhan Clarity’s sales prices and gross margins are lower than other clients.

In response, the company explained that the average selling price and gross margin of radiotherapy positioning films sold to Wuhan Clarity are not significantly different from the overall domestic distributor level. However, the vacuum negative pressure bags sold to Wuhan Clarity have lower average prices and gross margins, and because this category constitutes a large proportion of Wuhan Clarity’s sales, it has become the main factor lowering its overall gross margin.

However, Zhang Yi, CEO of iiMedia Research, commented that issues related to sales channels and related-party relationships can indeed be controversial. But from the channel distribution perspective, the core concern is not necessarily the related-party channel itself but whether other distributors have objections. If other channels are satisfied and this related-party channel can complete sales, realize effective payments, and generate profits, then this issue may not need further debate.

For this IPO, the company plans to raise 259 million yuan, to be used for the headquarters construction of radiotherapy and rehabilitation products, the expansion and renovation of the composite material production line, and the R&D center. Notably, compared to the previous application draft, the “supplementary working capital” item (originally planned to use 40 million yuan of raised funds) has been removed in the review draft, with the focus now on capacity expansion and R&D.

02

Former regulator of Guangdong CSRC becomes former secretary before IPO

Cashed out 16.17 million yuan before listing

Clarity is a typical “family business.” Zhan Deren, born in 1959, has a career spanning from the public sector to hospitals and then to business.

In 1979, he served as a chemistry and biochemistry teacher at Shiyan Health School in Hubei Province, then joined Dongfeng Motor Corporation’s General Hospital (a top-tier hospital), working from a lab technician to head of the laboratory department, accumulating 10 years of clinical experience. In 1991, he moved to Hong Kong, joining Hong Kong Jia’an Technology Co., Ltd. as a technical manager, engaging with industry frontiers. In 1996, he officially “went into business,” managing Guangzhou East Mountain Kaismang Trading Firm.

Four years later, in 2000, he initiated the establishment of Clarity Limited, thus settling into the medical device industry. Since 1996, Zhan Deren has been an entrepreneur for 30 years.

His wife Li Li also comes from the medical system. She worked at Shiyan People’s Hospital in Hubei for 21 years, serving as head nurse of the oncology center and director of the quality control office. After leaving the system in 2001, she joined Clarity in 2006, starting as a sales manager, then serving as sales director, operations director, and now chief clinical technology officer.

This image may be AI-generated

Source: Canned图库

As of now, founders Zhan Deren and Li Li jointly hold 64.93% of voting rights.

According to the prospectus, from 2022 to the first half of 2025, the company distributed dividends totaling 50.058 million yuan, most of which went into the pockets of the actual controllers.

However, alongside this steady dividend rhythm, there have been several notable internal governance issues. The most dramatic involves former secretary Wu Si’s capital maneuvering.

Wu Si served as a regulator at Guangdong CSRC from October 2006 to November 2011, then joined Clarity in early 2015 as deputy general manager, CFO, and secretary. In her first year, she established consulting firm Xinyang Xuyia, which, just three months after its founding, invested in Clarity, holding 2.94%. At that time, Clarity was preparing for listing on the New Third Board and successfully listed in October of that year.

Over the next five years, Wu Si repeatedly adjusted her shareholding entities, transferring shares among companies she controlled, such as Xinyang Xuyia, Bai’an You, and Baibao You, all of which were newly established. In April 2018, she further transferred 14.39% of shares from the actual controller, Zhan Deren, to her employee shareholding platform Huaxing Hai, expanding her stake.

This image may be AI-generated

Source: Canned图库

In August 2020, Wu Si resigned from all positions, and her controlled platforms began to exit. The exit paths included: first, transferring shares to other investment institutions for cashing out—between February and August 2020, Bai’an You and Baibao You sold a total of 1.764 million shares at 9.17 yuan per share to institutions like Shidai Bole and Ertekang, cashed out a total of 16.1759 million yuan, and subsequently dissolved in June and October of that year.

Second, she transferred her shares in the employee shareholding platform back to the actual controller, but this process was delayed for three years. Her remaining 7.78% stake in Huaxing Hai was repossessed without payment, and the remaining 6.61% was transferred to Zhan Deren only in April 2023, completing her exit.

This slow exit process drew regulatory inquiries. The regulator asked the company to explain the reasonableness of Wu Si not collecting her investment after failing to meet exercise conditions, and whether the transfer price and the period of holding involved any financial support to shareholders.

The company responded that Wu Si left due to personal development plans after consulting with Zhan Deren. The transfers were based on mutual personal wishes, involving only internal share adjustments within Huaxing Hai, with no change in the company’s overall shareholding or control. The company’s actual control and ownership structure remained stable.

This image may be AI-generated

Source: Canned图库

Now, the Zhan Deren couple, who started their business together 30 years ago, are bringing the company to the listing stage. Amid these doubts about equity and related-party transactions, will they be able to pass the review smoothly and successfully go public? What do you think? Feel free to leave your comments below.

Author’s note: Personal opinions for reference only.