Core Viewpoint - The rapid development of AI is reshaping daily life and fundamentally changing the competitive landscape and operational paradigms in the business sector, particularly in healthcare, where AI is driving personalized medical services and creating significant investment opportunities [1][2]. Industry Overview - The Chinese healthcare service system is transitioning from a disease-centered model to a health-centered, comprehensive management model, creating substantial opportunities for innovative medical management solutions [2]. - The market for comprehensive disease management in China is projected to grow from 163 billion RMB in 2020 to 614 billion RMB in 2024, representing a compound annual growth rate (CAGR) of 39.3%, and is expected to reach 3,654 billion RMB by 2030, with a CAGR of 34.6% from 2024 to 2030 [2]. Company Profile - Founded in 2015, the company is recognized as a leader in AI-enabled comprehensive disease management services in China and is one of the top three providers in the sector [1][4]. - The company aims to leverage AI to connect hospitals, doctors, and patients, transforming the healthcare service value chain and enhancing health management from pre-treatment to post-treatment [1][5]. Financial Performance - The company has achieved significant revenue growth, with reported revenues of approximately 5.12 billion RMB, 6.28 billion RMB, and 6.53 billion RMB for the years 2022, 2023, and 2024, respectively [7]. - Gross profit has also increased, with total gross profits of 882 million RMB, 1.18 billion RMB, and 1.3 billion RMB, leading to a gross margin improvement from 17.2% in 2022 to 19.9% in 2024 [7]. - Despite revenue and gross margin growth, the company has not yet achieved profitability, with losses of approximately 4.14 billion RMB, 1.50 billion RMB, and 1.93 billion RMB over the same period, totaling 7.57 billion RMB in cumulative losses [7]. Market Position and Future Outlook - The company has established partnerships with 157 hospitals and has provided comprehensive disease management services to around 500,000 patients, achieving a patient satisfaction rate of over 99.9% [7]. - The company is positioned as a pioneer in the AI healthcare sector, with a strong potential for continued growth, but faces challenges in maintaining market share and achieving profitability in a competitive landscape [8].

Core Viewpoint - The company, 微脉, is in a favorable environment with policy support and market expansion, but it faces significant structural issues such as weak profitability, imbalanced financial structure, tight cash flow, and high reliance on external resources. The ability to achieve a true business model closure through the IPO remains to be seen and requires ongoing attention and verification [1][14]. Financial Performance - 微脉's revenue from 2022 to 2024 is projected to grow from 5.12 billion to 6.53 billion, indicating an overall upward trend, but the growth rate has noticeably slowed [5][7]. - The company has recorded net losses for three consecutive years, amounting to -4.14 billion, -1.50 billion, and -1.93 billion, with operating losses not effectively narrowing [5][7]. - The adjusted net losses, calculated under non-IFRS standards, are -2.33 billion, -0.99 billion, and -0.30 billion, indicating no turnaround in profitability [5]. Revenue Breakdown - In 2024, the revenue sources are primarily from condition and case management (4.70 billion, 72.02%), sales of drugs and medical products (1.26 billion, 19.36%), and brokerage and insurance services (0.56 billion, 8.62%) [7]. - The brokerage and insurance revenue saw a significant increase of 163.28% in 2023 but then declined by 37.48% in 2024, showing volatility [7][8]. - The condition and case management service growth rates have slowed, with year-on-year increases of 10.46% and 7.49% for 2023 and 2024, respectively [7][8]. Profitability Metrics - The overall gross margin has improved slightly from 17.24% in 2022 to 19.87% in 2024, but remains low [8][9]. - The gross margin for the brokerage and insurance business increased from 2.58% to 13.25%, while the gross margin for drug sales decreased from 28.07% to 12.10%, indicating weakened profitability [8][9]. Financial Structure and Cash Flow - The company exhibits a high debt-to-asset ratio of 685.15%, 865.71%, and 737.62% from 2022 to 2024, indicating financial fragility [11]. - Operating cash flows have been negative for three years, at -2.43 billion, -0.83 billion, and -0.39 billion, showing reliance on external financing for operations [11]. - The company’s cash inflow from financing activities reached 1.10 billion in 2024, highlighting its dependence on capital injections for expansion [11]. Industry Context - The full-course management service market in China is rapidly expanding, projected to grow from 163 billion in 2020 to 614 billion in 2024, with a compound annual growth rate of 39.3% [13]. - Despite market growth, the industry faces challenges such as unclear profit models, low user payment willingness, and slow collaboration with public hospitals [13]. - 微脉 has proposed several strategies to achieve profitability, including expanding business scale through partnerships with hospitals and improving operational efficiency via AI systems, but these strategies face external and internal challenges [13][14].

Core Viewpoint - 微脉公司 is a leading provider of AI-enabled full-course management services in China, focusing on connecting hospitals, doctors, and patients to enhance healthcare service value chains [1][2]. Group 1: Company Overview - 微脉 submitted its listing application to the Hong Kong Stock Exchange on June 27, with joint sponsors being 招商证券(香港)有限公司 and 德意志证券亚洲有限公司 [1]. - The company is headquartered in Hangzhou and is one of the top three full-course management service providers in China, as well as the largest patient-oriented AI-enabled service provider [1]. - 微脉 has established partnerships with 157 hospitals and has set up dedicated full-course management centers in each [1]. Group 2: Business Model and Services - The core business model of 微脉 revolves around full-course management, providing comprehensive and continuous healthcare services through multidisciplinary health management teams [1]. - Services offered include treatment arrangements, medication management, rehabilitation guidance, follow-up coordination, nutritional guidance, home care services, and remote monitoring, serving approximately 500,000 full-course management patients [1][2]. Group 3: Financial Performance - In 2024, 微脉's total revenue is projected to exceed RMB 650 million, showing growth from RMB 628 million in 2023 and RMB 512 million in 2022 [2]. - Revenue breakdown for 2024 indicates that full-course management services contribute 72.0%, medical health product sales contribute 19.4%, and insurance brokerage services contribute 8.6% [2]. - Despite revenue growth, the company recorded a net loss of RMB 193 million in 2024, an increase from RMB 150 million in 2023, although adjusted net loss improved from RMB 233 million in 2022 to RMB 30.2 million in 2024 [2]. Group 4: Technology and Innovation - 微脉 developed the CareAI platform, one of the first AI medical management platforms in China, utilizing a multi-agent system and hybrid model architecture [2]. - The platform combines multiple advanced language models with a dynamic medical information knowledge base, outperforming single model solutions in key performance indicators [2].