Core Viewpoint - MicroPulse has submitted its IPO application to the Hong Kong Stock Exchange, aiming to enhance its AI medical capabilities and expand its healthcare management ecosystem, while attracting more investors for long-term development [1] Financial Performance - MicroPulse has reported continuous losses over the past three years, with revenues of 5.12 billion, 6.28 billion, and 6.53 billion yuan for 2022, 2023, and 2024 respectively, and net losses of 4.14 billion, 1.50 billion, and 1.93 billion yuan for the same years [2] - The company's revenue is primarily derived from three segments: full-course management services (72% of revenue), medical health product sales (19.4%), and insurance brokerage services (8.6%) for 2024 [2] Business Strategy - MicroPulse has developed a clear strategy to achieve profitability, focusing on controlling operational costs, particularly in sales and distribution, and leveraging government policies and AI technology to streamline processes [3] - The company aims to create a sustainable and diversified revenue model by expanding into adjacent fields such as insurance brokerage and medical health product sales, enhancing patient engagement and lifetime value [3] Gross Margin Analysis - MicroPulse's gross margin has been below 20% for three consecutive years (17.2%, 18.9%, and 19.9% from 2022 to 2024), attributed to strategic pricing and the initial phase of its business layout [4] - The company believes that while low gross margins may impact short-term performance, they will lead to a more stable customer base and sustained revenue in the long run [4] Competitive Landscape - The digital health sector is competitive, with listed companies such as Beijing New Oxygen Technology, Alibaba Health, JD Health, and Dingdang Health, alongside numerous unlisted firms also entering the market [5] Market Potential - MicroPulse is seen to possess unique advantages and growth potential, with the IPO expected to provide additional funding to solidify its business layout and scale operations towards profitability [6]

Core Viewpoint - MicroPulse has submitted its prospectus for an IPO on the Hong Kong Stock Exchange, but despite its high-profile backing and claims of being a leading player in the AI-enabled healthcare sector, it faces significant challenges including weak business growth and a fragmented market with low market share [1][2][7]. Company Overview - MicroPulse's main business segments include full-course management, medical health product sales, and insurance economic services, with revenue contributions of 72%, 19.4%, and 8.6% respectively for 2024 [3][4]. - The company has experienced a slowdown in revenue growth, particularly in its full-course management segment, which has seen single-digit growth rates [3][5]. Financial Performance - From 2022 to 2024, the company's revenue is projected to grow from 511.885 million RMB to 652.699 million RMB, but it has not achieved profitability, with annual losses of 414 million RMB, 150 million RMB, and 193 million RMB during the same period [5][6]. - Adjusted EBITDA remains negative across the reporting periods, indicating that cost-cutting measures rather than revenue growth are primarily responsible for the narrowing of losses [5][6]. Market Position - Despite being ranked third in revenue within the industry, MicroPulse holds only a 0.71% market share, highlighting the highly fragmented nature of the competitive landscape [2][3]. - The company emphasizes its AI capabilities, but the actual value and effectiveness of its AI platform, CareAI, are questioned due to reliance on third-party models and insufficient R&D investment compared to sales and administrative expenses [7][8]. Investment and Valuation - MicroPulse has raised approximately 1.5 billion RMB through six rounds of pre-IPO financing, achieving a post-money valuation of about 5.6 billion USD (approximately 41 billion RMB) after its latest funding round [8]. - The company faces potential redemption obligations amounting to 1.984 billion RMB due to special rights granted to pre-IPO investors, which could strain its financial position given its limited cash reserves [8].