Core Viewpoint - Hanon Medical, the first domestic company to achieve the localization of ECMO systems, is facing significant financial challenges despite its technological breakthroughs and plans for an IPO to raise funds for production and sales capabilities [2][4][11]. Financial Performance - Hanon Medical reported a revenue of 37.35 million yuan in the first half of 2025, with a net loss of 82.27 million yuan, indicating a narrowing loss trend [4][5]. - Cumulative losses since 2022 have exceeded 670 million yuan, with the company still in a state of continuous loss [4][5]. - The company has invested approximately 434 million yuan in R&D since its establishment, with R&D expenses significantly exceeding revenue, reaching 138.66% of revenue in the first half of 2025 [6][7]. Market Position and Challenges - The company’s ECMO system has been adopted by over 140 hospitals, including top-tier institutions, but the high price point of over one million yuan per unit has hindered revenue scaling [5][9]. - Hanon Medical faces intense competition in the ECMO market, dominated by foreign brands, and is under pressure from a declining willingness of hospitals to purchase new equipment [8][10]. - The company relies heavily on a limited number of medical trading companies for sales, which poses risks if these intermediaries face operational difficulties [9][10]. Funding and Future Prospects - The IPO aims to raise 1.062 billion yuan, with 500 million yuan allocated for R&D center construction and 250 million yuan for working capital, highlighting the company's reliance on external funding [7][11]. - The company’s ability to transition from a technology leader to a commercially successful entity will depend on resolving its profitability issues and navigating market challenges effectively [11].