Core Viewpoint - Shenzhen Wenzhi Traditional Chinese Medicine Technology Co., Ltd. (Wenzhi TCM) has submitted its application for a mainboard listing on the Hong Kong Stock Exchange for the second time this year, indicating its ambition to capitalize on the AI-assisted TCM market despite previous setbacks [1] Financial Performance - Wenzhi TCM's revenue has grown significantly from 62.169 million RMB in 2022 to 236 million RMB in 2024, reflecting a substantial compound annual growth rate [2] - The company's main revenue source is TCM medical services, which accounted for over 80% of total revenue in the past three years, projected to reach 89.6% in 2024 [2] - The patient revisit rate has improved from 61.2% in 2022 to 71.9% in 2024, indicating strong patient retention compared to the industry average of 30%-40% [2] Losses and Financial Health - Despite revenue growth, Wenzhi TCM has faced significant losses, with net losses of 154 million RMB in 2022, 194 million RMB in 2023, and 45.367 million RMB in 2024, with losses increasing to 43.841 million RMB in the first five months of 2025 [3] - The company's asset-liability ratio was extremely high, reaching 390% in 2022 and 2023, and 268.93% in May 2025, indicating financial pressure [4] Marketing vs. R&D - Wenzhi TCM has shown a trend of prioritizing marketing over research and development, with R&D expense ratio declining from 8.7% in 2022 to 3.8% in the first five months of 2025, despite absolute R&D spending increasing [3][4] - The sales expense ratio has remained above 12%, reaching 16.6% in early 2025, with a significant portion of expenses directed towards advertising [4] Quality and Governance Concerns - The "AI Brain" service, a key selling point for Wenzhi TCM, has seen a slowdown in revenue growth, with a 23.24% decline in the first five months of 2025 compared to the previous year [5][6] - Complaints regarding treatment quality and safety have been reported, raising concerns about the company's ability to manage medical risks effectively [6] - Notably, the co-founders have significantly reduced their stakes in the company prior to the IPO, which may signal a lack of confidence in the company's future prospects [7] Market Potential - The integration of AI and TCM aligns with current technological investment trends and government policies promoting TCM innovation, suggesting potential growth opportunities in the sector [7]

Core Viewpoint - The recent surge in AI healthcare projects has led to a wave of IPOs in Hong Kong, creating various "first stock" myths, particularly in the field of traditional Chinese medicine (TCM) [1][2]. Group 1: Company Overview - Wenzhi TCM, which recently submitted its IPO application to the Hong Kong Stock Exchange, focuses on providing consultation and prescription services through its self-developed "TCM Brain" AI-assisted diagnostic system [4]. - The revenue of Wenzhi TCM is projected to grow from 62 million yuan in 2022 to 236 million yuan in 2024, while net losses are expected to decrease from 154 million yuan to 45 million yuan during the same period [4]. Group 2: Business Model and Services - Wenzhi TCM's core business is TCM medical services, contributing over 80% of its revenue, with online services accounting for nearly 90% of its TCM medical service revenue in 2024 [7][9]. - The company has opened 11 offline clinics, but most services are provided online, which differs significantly from traditional TCM practices that rely on direct patient interaction [8][9]. Group 3: Financial Performance - The average consultation fees for cancer and difficult disease patients are 1,422 yuan and 1,118 yuan, respectively, indicating a high-value service offering [10]. - However, revenue from cancer and difficult disease patients is projected to decline, with expected revenues of 58 million yuan and 67 million yuan in 2024, down 5.26% and 5.95% year-on-year [12]. Group 4: Technology and Compliance Challenges - The "TCM Brain" system, developed under the guidance of controversial figures, has not yet received approval from the drug regulatory authority, raising questions about its efficacy and compliance [17][15]. - Despite being the first TCM AI-assisted diagnostic system to pass clinical consistency research, it lacks the necessary medical device certification, which poses a significant compliance challenge for the company [17][18]. Group 5: Future Prospects and Expansion Plans - Wenzhi TCM aims to leverage the "TCM Brain" to reduce reliance on renowned doctors and facilitate low-cost clinic operations, with plans to establish 16 new offline clinics in mainland China by 2031 [20][23]. - The company has also initiated a franchise model through the "Wenzhi TCM AI Alliance," although the subscription revenue from this service remains low, indicating challenges in scaling this aspect of the business [21][22].

出品｜搜狐财经 作者｜刘相君 不用号脉，网上就能看中医？ 近日，问止中医科技（以下简称"问止中医"）向港交所递交了招股书，这是继今年1月9日首次递表失效后的第 二次申请，海通国际担任独家保荐人。 AI辅助、线上问诊，靠谱吗？ 问止中医成立于2018年，是一家专注于人工智能辅助中医诊疗的企业。根据灼识咨询报告，就人工智能辅助的 收入而言，问止中医是2023年和2024年中国内地最大的人工智能辅助的中医医疗服务提供商，市场份额分别为 1.5%和1.3%。 问止中医通过微信公众号上的在线入口及微信小程序以及线下诊所整合在线及线下服务渠道，两者相辅相成。 目前，公司于深圳、广州、厦门、成都、郑州、长沙、济南、西安、咸阳及杭州运营十一家线下实体诊所（包 括一个门诊部），并于深圳、成都、济南及亳州运营四家煎药中心。 从商业模式来看，线上渠道成为贡献营收的绝对主力。 数据显示，2022年-2025年5月31日（报告期），问止中医分别实现营收6216.9万元、1.89亿元、2.36亿元、1亿 元，其中近九成的收益来自于线上中医医疗服务；期间亏损分别为1.54亿元、1.94亿元、4536.7万元、4384.1万 元，三年多累计 ...

2022年至2024年，问止中医的营业收入快速增长，从0.62亿元涨至2.36亿元，三年复合增长率高达32%。但利润持续亏损，与营收形成强烈反 差：截至2024年，公司累计亏损近4亿元，流动负债净额近5亿元。 | | | 截至12月31日止年度 | | 截至5月31日止五個月 | | | --- | --- | --- | --- | --- | --- | | | 2022年 | 2023年 | 2024年 | 2024年 | 2025年 | | | 人民幣于元 | 人民幣千元 | 人民幣十元 | 人民幣下元 | 人民幣下元 | | | | | | (未經審核) | | | 收益 | 62,169 | 188,998 | 236,414 | 89,848 | 100,392 | | 销售成本 | (27,190) | (76,035) | (96,291) | (37,373) | (38,249) | | 毛利 | 34,979 | 112,963 | 140,123 | 52,475 | 62,143 | | 其他收入及收益 | 1.501 | 2,286 | 4.456 | 1.480 | 2,547 ...

Core Viewpoint - The company, Wenzhi Traditional Chinese Medicine, is combining AI technology with traditional Chinese medicine to create a unique business model that aims to enhance profitability while addressing the high costs associated with quality medical services [1][16]. Group 1: Company Background - Wenzhi Traditional Chinese Medicine was founded by three talented individuals who studied in the U.S., with a focus on integrating AI into traditional Chinese medicine [2]. - The founder, Cui Xiangrui, has a background in venture capital and private equity, which influences the company's approach to scaling and innovation [5]. - The company has received multiple rounds of funding since its establishment in 2018, indicating a strong interest from investors [6][7]. Group 2: Business Model and Revenue - Wenzhi's primary revenue sources include online medical services, traditional Chinese medicine products, and subscriptions to their AI system, with online consultations accounting for nearly 90% of medical service revenue [8][10]. - The company reported a revenue growth of 281% from 2022 to 2024, driven by its innovative approach and community engagement through the establishment of Jingyi Academy [12]. - The gross margin of Wenzhi is around 60%, which is higher than traditional chain hospitals, suggesting a potentially sustainable business model [14][15]. Group 3: AI Integration and Challenges - The AI system, known as "Traditional Chinese Medicine Brain," assists in diagnosis and treatment by analyzing patient symptoms and providing treatment suggestions [10][18]. - Despite the advantages of AI, the company faces challenges in maintaining the personalized nature of traditional Chinese medicine, which relies heavily on the practitioner's experience and intuition [17][18]. - The high patient revisit rate of 67.2% indicates a level of patient loyalty, but it also raises questions about the effectiveness of treatments, particularly for chronic conditions [18][19]. Group 4: Market Position and Future Outlook - Wenzhi aims to leverage the growing interest in AI and traditional Chinese medicine to expand its market presence, but it must navigate the complexities of integrating advanced technology with traditional practices [21]. - The company has established itself as a leader in the AI-assisted traditional Chinese medicine space, but it must continue to prove the efficacy and sustainability of its model to maintain investor confidence and patient trust [21].

Core Viewpoint - The company "Wenzhi Traditional Chinese Medicine" is aiming to become the first publicly listed company in the AI TCM sector, having submitted its prospectus for the second time and updated its operational data for the first five months of 2025 [1][12]. Business Overview - Wenzhi's main business includes online and offline TCM medical services, TCM popular science training, AI subscription services, and health food products [1]. - The core revenue source is TCM medical services, utilizing an AI-assisted diagnostic system called "TCM Brain" alongside full-time physicians [1][6]. - As of now, the company operates 11 offline clinics [1]. Financial Performance - Revenue from 2022 to May 2025 is as follows: 62.169 million RMB, 189 million RMB, 236 million RMB, 89.848 million RMB, and 100 million RMB, with net losses of 154 million RMB, 194 million RMB, 45.367 million RMB, 2.386 million RMB, and 43.841 million RMB respectively [1][10]. - The company has faced continuous losses primarily due to costs associated with health food product production, clinic operations, physician employment, and AI research and development [1]. Team and Management - The founder, Cui Xiangrui, is a seasoned private equity investor with no direct expertise in TCM, raising concerns about the management team's qualifications [3][8]. - The founding team includes two doctors with backgrounds in acupuncture and Eastern medicine, who have experience in internet-related fields [3]. - The average experience of full-time physicians is about 5 years, with approximately one-third having over 5 years of TCM practice experience [6]. Market Potential - The market for AI-assisted TCM treatment is projected to reach approximately 16 billion RMB in 2024, with a compound annual growth rate of 113.7% from 2020 to 2024 [9]. - The "TCM Brain" aims to address industry pain points such as reliance on scarce senior TCM practitioners and slow training processes [9]. Investment and Valuation - The company has raised a total of approximately 21.718 million USD (around 160 million RMB) through five financing rounds, with a valuation of 256 million USD (approximately 1.838 billion RMB) [11]. - Notable investors include BlueRun Ventures and ZhenFund, which have made multiple investments in the company [11]. Industry Context - The AI medical industry is experiencing rapid growth, with the market size increasing from 2.7 billion RMB in 2019 to 8.8 billion RMB in 2023, and projected to reach 315.7 billion RMB by 2033 [12]. - Despite the growth, many leading AI medical service providers have yet to achieve profitability, often incurring annual losses exceeding 100 million RMB [12].

Core Viewpoint - The integration of AI into traditional Chinese medicine (TCM) is attracting significant investment, with a total of 1.2 billion yuan raised in 85 financing events in 2024, highlighting AI TCM as a key investment target in the primary market [6][15]. Group 1: AI TCM Development - Various academic and corporate entities are actively developing AI TCM models, with notable projects including the "Sunsimiao" model from East China University of Science and Technology, which is based on 100,000 high-quality TCM data [11]. - The "Zhongsi" model from Sun Yat-sen University boasts 34 billion parameters and incorporates over 3.8 million medical instruction data, combining the strengths of historical TCM figures [11]. - The "Shuzhi Qihuang" model developed by East China Normal University includes over 80,000 TCM prescriptions and 1,000 ancient texts, serving over 10,000 users [11]. Group 2: Investment Landscape - Notable investments in the AI TCM sector include a Series A2 round led by BlueRun Ventures and ZhenFund for Wenzhi TCM Technology, which aims to become the first AI TCM stock listed in Hong Kong [13]. - Other companies like Guiyuantang Bio and Wuzheng Intelligent have also secured millions in funding for their AI TCM projects, indicating a growing interest in this niche [14]. Group 3: Market Potential - The market size for AI TCM is projected to grow from 2 billion yuan in 2020 to 15 billion yuan by 2025, and is expected to exceed 140 billion yuan by 2027, showcasing its lucrative potential [15]. - Major tech companies like Huawei, Alibaba, Tencent, and Baidu are also exploring AI applications in TCM, indicating a broader industry trend [16]. Group 4: Challenges and Limitations - Current AI algorithms struggle to translate the intangible aspects of TCM, such as "qi" and "yin-yang," into replicable models, suggesting a need for a human-AI collaborative approach [26]. - The high costs associated with developing large AI models pose a significant barrier, with many companies hesitant to invest heavily in TCM AI due to the relatively small market size [30]. - For instance, Wenzhi TCM, despite being a leading company in the AI TCM sector, has only allocated a small portion of its revenue to R&D, raising concerns about its long-term sustainability [29].

华夏时报记者 郭怡琳 于娜 北京报道 一年两赴港交所，AI中医医疗服务商再冲IPO。 2025年7月29日，问止中医科技WenZhiTCM Inc.（下称"问止中医"）向港交所递交招股书，海通国际成 为独家保荐人。据悉，这是继今年1月9日首次递表，7月9日失效后的第二次冲击。这家成立仅七年的公 司凭借"中医+AI"模式，市场份额连续两年稳居行业榜首。 天眼查显示，问止中医成立于2018年，其创始人崔祥瑞有着鲜明的跨界背景，中山大学生命科学本科、 斯坦福大学MBA，兼具医疗投资经验。公司以线上互联网医院、线下中医诊所、中医智能产品为三大 板块主营业务，囊括中医生活产品（多种养生产品、在线录播课程及书籍）和"中医大脑"订阅服务。 一位不愿具名的中医领域二级市场分析师接受《华夏时报》记者采访时表示，"目前AI医疗风口仍在， 但中医与AI结合仍是难点。中医现代化探索若想避免沦为资本泡沫，需回归医疗本质，以疗效跨越质 疑，以口碑定义价值。近年来中医利好政策频发，中医概念企业发展乘风而行。" 此外，知名财税审计专家刘志耕表示，"上市可直接为企业提供多重支持，尤其对处于扩张期的企业至 关重要。资本市场认可为企业带来的品牌溢 ...

Core Viewpoint - Shenzhen Wenzhi Traditional Chinese Medicine Health Technology Co., Ltd. has submitted an updated prospectus to the Hong Kong Stock Exchange, marking a significant step towards becoming the "first AI stock in traditional Chinese medicine" [1] Financial Performance - The company reported revenues for the fiscal years 2022, 2023, and 2024, as well as for the five months ending May 31, 2024, and 2025, amounting to approximately 62.169 million, 189 million, 236 million, 89.848 million, and 100 million respectively [1] Business Overview - Founded in June 2018 and headquartered in Shenzhen, the company is an AI-enabled provider of traditional Chinese medicine services, focusing on online internet hospitals, offline TCM clinics, TCM lifestyle products, and the "Traditional Chinese Medicine Brain" subscription service [1] - The company has developed an AI-assisted diagnostic system called "Traditional Chinese Medicine Brain," which utilizes deep learning from over one million clinical cases to create a knowledge graph of over 3,000 diseases, aiming to enhance diagnostic efficiency and accuracy [1] Revenue Structure - The company operates three main business segments: TCM medical services, TCM lifestyle products, and the TCM Brain subscription service, with TCM medical services accounting for 90% of total revenue, making it the core revenue driver [1] Service Model - The company provides a one-stop service through its self-operated internet hospital, offering video consultations, intelligent diagnostics, and herbal medicine delivery [2] - 90% of the company's diagnostic revenue is generated from online channels, supported by 12 self-operated clinics and 4 regional herbal medicine preparation centers, creating a nationwide TCM service network [2] Market Expansion - In the consumer sector, the company is expanding into TCM lifestyle products through its e-commerce platform, catering to daily TCM health needs [2] - In the B2B market, the "Traditional Chinese Medicine Brain" subscription service is gradually opening up new growth opportunities by providing intelligent diagnostic capabilities to TCM medical institutions on a subscription basis [2]

Core Viewpoint - The AI healthcare sector is experiencing rapid growth, and traditional Chinese medicine (TCM) is seeking to leverage this trend through companies like Wenzhi TCM, which is aiming for an IPO in Hong Kong after previously failing to do so [1][2]. Company Overview - Wenzhi TCM, established in 2018, is the largest AI TCM service provider in China, with its business divided into three main segments: TCM medical services, TCM lifestyle products, and TCM brain subscription services [1][2]. - The company generated 89.6% of its revenue from TCM medical services in the previous year [1][3]. - Wenzhi TCM has completed five rounds of financing, raising approximately 160 million RMB, with notable investors including BlueRun Ventures and ZhenFund [3]. Market Potential - The AI-assisted TCM market is projected to grow significantly, with AI penetration expected to rise from 1.4% in 2024 to 5.4% in 2029, and the market size anticipated to increase from 16 billion RMB to 100.1 billion RMB during the same period, reflecting a compound annual growth rate of 44.3% [2]. - Wenzhi TCM holds a market share of 1.5% and 1.3% in 2023 and 2024, respectively, making it the largest AI-assisted TCM service provider in mainland China [3]. Financial Performance - Wenzhi TCM's revenue for the years 2022, 2023, and 2024 (up to May) was 62 million RMB, 189 million RMB, and 236 million RMB, respectively, with corresponding net losses of 154 million RMB, 194 million RMB, and 45 million RMB [3]. - The average consultation fee for patients has been relatively high, with amounts of 817.9 RMB, 933.2 RMB, and 937.1 RMB for the years 2022, 2023, and 2024, respectively [3]. Compliance and Challenges - Wenzhi TCM faces compliance risks, particularly due to the lack of medical qualifications among its founding team, which may raise concerns about the credibility of its services [5]. - The company has received numerous consumer complaints regarding refund difficulties, adverse reactions to medications, and misleading advertising [5]. - Key challenges in integrating AI with TCM include data standardization, algorithmic integration with TCM diagnostic logic, and a shortage of interdisciplinary talent [5]. Future Considerations - For Wenzhi TCM to succeed in the AI healthcare landscape, it must focus on adjusting its business structure, establishing industry standards, overcoming technical barriers, and cultivating interdisciplinary talent to build trust [6].