Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued supplementary material requirements for five companies, including Deyi Group, which is seeking to list on the Hong Kong Stock Exchange. The CSRC has requested clarifications on various aspects of the company's operations and shareholder structure [1][2][3]. Group 1 - The CSRC requires Deyi Group to clarify the identification of its controlling shareholders and whether it plans to continue pursuing an A-share listing [1][2]. - Deyi Group must provide details on the share transfer prices and their legality over the past 12 months, along with a legal opinion on the compliance of its establishment and share changes [1][2]. - The company is asked to explain the progress of share transfers related to Shanghai Huiyu Medical Technology Partnership and any changes to its shareholding structure before and after the proposed "full circulation" [1][2]. Group 2 - The CSRC has requested information on the progress of identifying state-owned shareholders and whether the company's business involves foreign investment restrictions [2]. - Deyi Group must disclose its previous A-share listing application details and any plans to continue pursuing this listing, including potential impacts on the current issuance [2]. - The company is required to clarify whether it operates any apps or platforms that collect personal information, detailing the scale and usage of such data [2][3]. Group 3 - Deyi Group is recognized as a global leader in innovative radiosurgery solutions, with its core product, CybeRay, being the first real-time image-guided gamma radiosurgery system approved by both the FDA and the National Medical Products Administration of China [3]. - The company is also developing its flagship product, TaiChiRT Pro, which is the first integrated X/gamma radiation therapy system to receive breakthrough medical device designation from the FDA [3].

Core Insights - Xi'an Deyi Group Co., Ltd. has submitted its application for an IPO on the Hong Kong Stock Exchange, with CITIC Securities International, Pudong Development Bank International, and Minyin Capital as joint sponsors [2] - The company specializes in the research and development of oncology diagnosis and treatment, particularly in radiotherapy products, and aims to expand its applications into functional preservation and disease management [2] - Deyi Group has completed seven rounds of equity financing from January 2019 to February 2024, raising a total of 1.571 billion RMB, with notable investors including Hillhouse Capital and others [2] - Following a financing round in February 2024, the company's valuation exceeded 5 billion RMB, reaching 5.135 billion RMB, with a per-share cost of 33.53 RMB [2] Financing Details - The company has undergone multiple financing rounds, with the first round on January 30, 2019, and the latest round completed on February 16, 2024 [3] - The per-share costs have increased over the rounds, starting from approximately 21.68 RMB in the first round to 33.53 RMB in the latest round [3] - The total amount raised in each financing round varies, with the most significant being 755 million RMB in the last round [3] Management and Ownership Structure - The Liu family holds a significant portion of the voting rights in Deyi Group, controlling approximately 52.99% of the issued share capital through various agreements [3][5] - Liu Haifeng serves as the Executive Director, Chairman, and General Manager, while his daughter Liu Yichen and son-in-law Zan Peng also hold key executive positions [5] - Liu Yichen's shareholding is notably higher than that of Liu Haifeng, raising speculation about her potential succession as the next leader of the company [5] Compensation and Performance Bonuses - In terms of compensation, Liu Haifeng has set his annual salary at 960,000 RMB for both 2023 and 2024, while Liu Yichen's salary has been lower at 360,000 RMB and 375,000 RMB respectively [5] - Performance-related bonuses for executive directors were significantly higher in 2023, totaling 1.499 million RMB, with a large portion going to Liu Yichen and Zan Peng [5] - However, the performance bonuses for 2024 have drastically decreased to 503,000 RMB, with Zan Peng's share dropping from 492,000 RMB to 14,000 RMB [5]