Iflytek Co.,ltd. Medical Technology has launched its IPO, spun off from Iflytek Co.,ltd., and is scheduled to be listed on the 30th, serving as an AI "medical solutions provider".

Futu News on December 18th.$XUNFEIHEALTH (02506.HK)$ Announcement: The company will conduct a global offering of 7.0356 million shares from December 18, 2024 to December 23, 2024, with an expected listing date of December 30, 2024.

Financial Overview

The company's revenue increased by 26.7% from RMB 0.372 billion in 2021 to RMB 0.472 billion in 2022, and further increased by 17.9% to RMB 0.556 billion in 2023; The company's gross profit increased by 22.9% from RMB 0.188 billion in 2021 to RMB 0.231 billion in 2022, and further increased by 36.4% to RMB 0.315 billion in 2023.

Source: Prospectus

Industry overview

China's medical service industry mainly includes disease prevention, treatment, and rehabilitation services. China's medical expenditure in 2023 was RMB 9095.7 billion, expected to increase to RMB 14542.8 billion by 2030, with a compound annual growth rate of 6.9%. Medical service providers in China include grassroots medical institutions, hospitals, and other medical institutions. As of December 31, 2023, China had 1,016,000 grassroots medical institutions and 39,000 hospitals.

The market size of China's medical AI industry has significantly increased. It rose from RMB 2.7 billion in 2019 to RMB 8.8 billion in 2023, with a compound annual growth rate of 33.8%. It is expected to further grow to RMB 315.7 billion by 2033, with a compound annual growth rate of 43.1% from 2023 to 2033. In 2021, 2022, and 2023, based on revenue, the company ranked first with market shares of 8.0%, 6.8%, and 5.9% respectively.

Source: Prospectus

Cornerstone Investors

Regarding cornerstone investors, Xingqun, Daan, Hengqin Investment Fund, Xunyi Limited, and Costone China Growth have agreed to subscribe or cause their designated entities to subscribe for a total amount of approximately $35.57 million under certain conditions at the offer price.

Source: Prospectus

Use of Proceeds

In terms of fundraising purposes, Iflytek Medical Technology expects the net proceeds from the global offering to be approximately HK$0.5071 billion (assuming the offer price is HK$82.8). According to the prospectus, Iflytek Medical Technology intends to use the proceeds from the global offering for the following purposes: approximately 32.4% for investment in research and development to continuously strengthen the company's core capabilities; approximately 26.6% for further enriching the company's products and services by upgrading existing products and developing new ones; approximately 24.7% for enhancing commercial capabilities and expanding the company's service network; approximately 6.4% for the acquisition of companies that may have synergies with the company's current production capacity; approximately 10% for working capital and other general corporate purposes.

More to read:Iflytek Medical Science Technology IPO Prospectus

For details, please click to view >> Beginner's Guide: How to subscribe for new stocks? Remember these 5 points.

Futu draws new shares with truly zero interest rates and zero handling fees, getting ahead in pre-market trades.Come and experience it >>

Editor / irene

19K Views