Company Overview - 德适生物科技股份有限公司 (德适生物) has submitted an IPO application to the Hong Kong Stock Exchange, with Huatai International as the sole sponsor [1] - Established in 2016 and headquartered in Hangzhou, Zhejiang, the company focuses on AI-driven medical imaging solutions, particularly its core product, iMedImage™ [1][2] - The company has completed multiple rounds of financing, achieving a post-investment valuation of 2.56 billion yuan after the latest round in June 2025 [1] Product and Technology - 德适生物's core product, iMedImage™, is a leading medical imaging base model that supports 19 imaging modalities and covers over 90% of clinical scenarios [4][11] - The company has developed a complete automated chromosome analysis pipeline, including AI AutoVision® and MetaSight® systems, which have received regulatory approvals [4][5] - The AI AutoVision® is expected to be the world's first AI-driven chromosome karyotype analysis system upon approval from the National Medical Products Administration [4] Market Position and Financial Performance - 德适生物 has established a distribution network of over 75 distributors, covering more than 400 healthcare centers across 31 provinces in China [6] - The company reported revenues of 52.84 million yuan and 70.35 million yuan for 2023 and 2024, respectively, with a year-on-year growth of 33.1% [5] - In 2024, the company achieved a gross profit margin of 65.5%, positioning it among the top in the medical device industry [5] Industry Context - The medical imaging AI industry faces challenges such as low standardization of multimodal data and a shortage of skilled professionals, creating a demand for efficient AI tools [2] - The chromosome karyotype analysis market is highly concentrated, with international giants holding 95% of the market share; 德适生物 has captured 30.6% of the market following the launch of its innovative products [10][7] - The reproductive health medical device market in China is projected to grow significantly, with an expected market size of 71 billion yuan by 2024 and over 173 billion yuan by 2035 [7][10]

Core Viewpoint - The company, Hangzhou Deshi Biotechnology Co., Ltd., is preparing for an IPO on the Hong Kong Stock Exchange amid challenges such as declining core business growth, reduced gross margins, and significant financial pressures [1][10]. Company Background - The founder, Dr. Song Ning, has a strong academic background in computer science and medical genetics, with experience teaching at Nagasaki University and Shanghai Jiao Tong University [2]. - Deshi Biotechnology was founded in September 2016 with a registered capital of 1 million yuan, and Song initially held 90% of the shares [3]. Financial Performance - The company reported a total revenue of 70.35 million yuan for 2024, but core business revenue decreased from 43.90 million yuan to 40.84 million yuan, with gross margin dropping by 19.9 percentage points to 56.7% [8]. - The company faced net losses of 56.12 million yuan in 2023 and 43.38 million yuan in 2024, with cash and cash equivalents dwindling to approximately 556,700 yuan by April 2025 [10][11]. Market Position - Deshi Biotechnology holds a leading position in the Chinese chromosome karyotype analysis system market, with a market share of 30.6% [7]. - The overall market for chromosome karyotype analysis is expected to grow from 120 million yuan in 2019 to 166 million yuan by 2024, with a compound annual growth rate of 6.7% [7]. Strategic Moves - The company has divested two subsidiaries for 1 yuan each to streamline operations and focus on core business, although the financial details of these subsidiaries were not disclosed [5][7]. - Deshi Biotechnology is betting on its AI-driven diagnostic system, AI AutoVision®, which has received "innovative medical device" recognition and is crucial for the company's future performance [11]. Investment and Shareholding - The company has attracted multiple rounds of investment, with a post-investment valuation reaching 2.56 billion yuan as of June 2025 [4]. - Song Ning has successfully executed several share buybacks to maintain control, currently holding 30.04% directly and controlling 52.06% of voting rights through various platforms [3][4].

Core Viewpoint - The company, Hangzhou Deshi Biotechnology Co., Ltd., is preparing for an IPO on the Hong Kong Stock Exchange amid challenges in its core business and financial pressures, despite its leading position in the chromosome karyotype analysis market and the potential of its AI-driven diagnostic system AI AutoVision® [1][10][20]. Company Overview - Founded by Dr. Song Ning, who has a strong academic background in computer science and medical genetics, the company has seen significant capital inflow since its establishment in 2016 [2][3]. - As of the latest funding round in June 2025, the company's post-money valuation reached 2.56 billion yuan [4]. Financial Performance - The company has faced declining revenue in its core business, with total revenue projected to reach 70.35 million yuan in 2024, while core business revenue dropped from 43.90 million yuan to 40.84 million yuan [12]. - The gross profit margin has significantly decreased by 19.9 percentage points to 56.7%, with consumables and reagents showing a drastic decline in gross margin from 43.1% to 5.6% [12]. - The company reported net losses of 56.12 million yuan and 43.38 million yuan for 2023 and 2024, respectively, with cash reserves dwindling to approximately 5.57 million yuan by April 2025 [19]. Market Position - Deshi Biotechnology holds a 30.6% market share in China's chromosome karyotype analysis system market, which is projected to grow from 120 million yuan in 2019 to 1.038 billion yuan by 2030 [11][12]. - The company is betting on the iMedImage medical imaging base model, which is expected to contribute significantly to revenue, with a projected market size of 51.9 billion yuan by 2035 [17][18]. Strategic Moves - The company has engaged in various share transfers and buybacks to maintain control, with Dr. Song Ning successfully regaining majority voting rights [3][4]. - Recently, the company sold two subsidiaries for 1 yuan each to streamline operations, raising questions about the financial health of these entities [9][10]. Future Prospects - The success of the AI AutoVision® system is critical for the company's future, as it has received "innovative medical device" recognition and is currently undergoing registration [20].

Core Viewpoint - The article discusses the upcoming IPO of Hangzhou Deshi Biotechnology Co., Ltd., which focuses on AI in medical imaging and has developed the world's largest general-purpose medical imaging foundation model, iMedImageTM [2][3]. Group 1: Company Overview - Hangzhou Deshi Biotechnology was established in 2016 and specializes in the medical imaging AI industry [2]. - The proprietary iMedImageTM model supports 19 types of medical imaging modalities and covers over 90% of clinical medical imaging scenarios, including reproductive health and hematological malignancies [2]. Group 2: Product Offerings - Based on the iMedImageTM model, the company provides a comprehensive end-to-end AI medical imaging solution that includes "foundation model - smart medical devices - reagents and consumables - large model services" [3]. - The core product, AI AutoVision®, is expected to be the world's first AI-driven chromosome karyotype analysis auxiliary diagnostic system [4]. - The company has developed a complete automated chromosome analysis pipeline, including systems for sample preparation and reporting [4]. Group 3: Market Position - As of June 21, 2025, Deshi Biotechnology's product portfolio includes three types of reagents and six types of consumables registered as Class II medical devices, along with 18 types of Class I medical device filings [5]. - According to Frost & Sullivan, the company holds the number one position in China's chromosome karyotype analysis market with a market share of 30.6% based on projected sales revenue for 2024 [6]. Group 4: Financial Performance - The company's revenue for 2023 and 2024 is projected to be 52.84 million yuan and 70.35 million yuan, respectively, with gross margins of 71.0% and 65.5% [7]. - As of the last round of equity transfer before the IPO, the company's valuation stands at 2.56 billion yuan [8]. Group 5: IPO Fund Utilization - The net proceeds from the IPO will primarily be used for the R&D and commercialization of AI AutoVision® and other iMedImageTM AI analysis system candidates, enhancing the foundation model and AI technology, and expanding global market presence [8].