The developer of medical devices is aiming to open up a commanding lead in the niche market for puncture and ablation robots, with the help of IPO proceeds

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Key Takeaways:

• The company's revenue stream amounts to a mere trickle for now, as its specialized instruments are only starting to be commercialized at scale
• True Health is highly dependent on a single customer that has consistently contributed nearly 90% of revenue

The surgical robot changed how operations are carried out. Now a Chinese medical technology company wants to revolutionize the way needles are inserted to conduct biopsies or excise tumor tissue.

Guangdong True Health Medical Technology Development Co. Ltd. recently filed for a Hong Kong listing, seeking to raise money to develop and promote its range of robotic puncture tools.

While companies such as MicroPort MedBot (2252.HK) and Cornerstone Robotics focus on laparoscopic surgery, True Health has chosen a less-traveled path, using robotic systems to assist with micro incisions that require pinpoint accuracy. While the market is far smaller than for surgical systems, it could expand into a significant niche within China's medical robotics industry.

True Health was founded in 2018 by an entrepreneur with experience in medical imaging and precision treatment. Zhang Haoren chose to specialize in the emerging field of percutaneous puncture, primarily used to diagnose and treat lung, liver, and kidney cancers, to help physicians avoid errors in accessing hard-to-reach lesions.

In 2023 the company moved its headquarters from Beijing to Hengqin, Guangdong, where it is closely aligned with the province's plans to develop its healthcare industry. True Health's TH-X MW microwave ablation robot subsequently became the first innovative medical device to be approved in Hengqin in the tightest regulatory category, Class Three, for instruments used in high-risk procedures.

According to the IPO application, True Health's core products include that system, described as the world's first image-guided microwave ablation robot, and China's first domestically developed system for percutaneous puncture navigation.

Third-party data cited in the application found China's market for percutaneous puncture robots was only worth about 40.3 million yuan ($5.9 million) in 2024 but was projected to reach 2.33 billion yuan by 2032, representing a compound annual growth rate of 66%.

According to China Insights Consultancy, True Health ranked first in China's market for puncture and ablation robots by revenue from 2022 to 2024, with the sector's biggest number of approved precision devices. Yet with such a small overall market, even the leading player still operates on a modest commercial scale.

The maker of incision equipment has only a trickle of income, with a revenue base smaller than many local clinics, but it needs to invest in R&D to expand its business. It generated revenue of 2.3 million yuan in 2023, falling to 1.79 million yuan in 2024. Over the same period, its net loss narrowed slightly from 95.54 million yuan to 92.16 million yuan. But turnover in the first half of 2025 totaled just 173,000 yuan, while losses came in at 56.73 million yuan. As its products are still being brought to market, incomings are erratic, as revenue recognition remains highly project based.

Concentrated clientele

The revenue pattern reflects a market in its early stages. It takes years for medical robots to gain regulatory approval, be procured by hospitals and then adopted by physicians. Large-scale commercialization has yet to truly begin in this case.

The company is also exceptionally reliant on a concentrated customer base. Its top five customers accounted for 100% of revenue in 2023, 2024 and the first half of 2025, while its largest client contributed nearly 90% of revenue.

The company said its products had been deployed across more than 20 provinces and nearly 100 medical institutions by the middle of last year, supporting more than 5,000 clinical procedures. For a puncture robotics market that is still in its infancy, this growing body of clinical data could become a competitive advantage over time.

More than 20 years ago, the company that developed the pioneering da Vinci system for minimally invasive surgery, Intuitive Surgical (ISRG.US), was also unprofitable when it went public. It went on to become the global leader in medical robotics through its installed systems, instruments and consumables, with a market value now exceeding $150 billion. But Intuitive Surgical was already pumping out many more millions of dollars in revenue at the time of its IPO than True Health is today.

The market for puncture robots is still much smaller than that for laparoscopic tools. China's volume-based procurement system and controls on healthcare costs also pose a bigger operating challenge. True Health's revenue base remains extremely small, its business model is unproven, and it has a long way to go before generating sustainable cash flow.

For investors searching for the next big opportunity in medical robotics, True Health may appeal as a potential early leader in puncture technology, if it can build out from its tiny revenue base.

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Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.