Core Viewpoint - The company, Xi'an Deyi Group Co., Ltd., is attempting to list on the Hong Kong Stock Exchange after previously withdrawing its application for the Shanghai Stock Exchange's Sci-Tech Innovation Board in 2021, amid significant financial losses and challenges in its business model [1][5]. Financial Performance - In 2024, the company's revenue was 264 million yuan, showing a slight increase from 261 million yuan in 2023, while the net loss expanded by 35.53% to 97 million yuan, leading to a cumulative loss of 777 million yuan by the end of 2024 [2][3]. - The company's research and development expenses were substantial, amounting to 97.9 million yuan and 113 million yuan for 2023 and 2024 respectively, representing 76.45% and 81.71% of the gross profit for those years [2]. Market Position - Deyi Group holds a dominant position in the Chinese gamma radiation surgical equipment market with a market share of 75.8%, but faces limitations due to the narrow market space and increasing competition from traditional linear accelerators [2][3]. - The company's revenue has not shown growth compared to previous years, with 2020 revenue at 295 million yuan, which is higher than the figures for 2023 and 2024 [3]. Accounts Receivable and Risk - The accounts receivable turnover days significantly increased from 172 days in 2023 to 322 days in 2024, indicating rising bad debt risks [3]. - The company recorded impairment losses on trade receivables and notes receivable of 8.8 million yuan and 28.3 million yuan during the reporting period [3]. Product Development and Strategy - Deyi Group's core products include the CybeRay and TaiChiRT Pro systems, with the gross margin for the TaiChi platform solution declining from 65.3% in 2023 to 54.9% in 2024 due to strategic adjustments in commercialization [4]. - The company is exploring broader applications for its products and has initiated clinical trials with four hospitals to expand the indications for its systems [4]. Funding and Valuation - Since 2019, Deyi Group has raised a total of 1.571 billion yuan through seven rounds of financing, but its cash and equivalents were only 126 million yuan by the end of 2024, indicating financial strain [5][6]. - The company's post-financing valuation increased to 5.135 billion yuan, a 55% rise from the previous valuation of 3.315 billion yuan before its last application for the Sci-Tech Innovation Board [6]. Investor Behavior - Prior to the current IPO application, several early investors opted to cash out, transferring shares at prices ranging from 28.93 yuan to 36.33 yuan per share, reflecting concerns over the company's financial health and future prospects [5][6][7].