Core Viewpoint - The company, Xi'an Deyi Group Co., Ltd., is attempting to list on the Hong Kong Stock Exchange after previously withdrawing its application for the Shanghai Stock Exchange's Sci-Tech Innovation Board in 2021, amid significant financial losses and challenges in its business model [1][5]. Financial Performance - In 2024, the company's revenue was 264 million yuan, showing a slight increase from 261 million yuan in 2023, while the net loss expanded by 35.53% to 97 million yuan, leading to a cumulative loss of 777 million yuan by the end of 2024 [2][3]. - The company's research and development expenses were substantial, amounting to 97.9 million yuan and 113 million yuan for 2023 and 2024 respectively, representing 76.45% and 81.71% of the gross profit for those years [2]. Market Position - Deyi Group holds a dominant position in the Chinese gamma radiation surgical equipment market with a market share of 75.8%, but faces limitations due to the narrow market space and increasing competition from traditional linear accelerators [2][3]. - The company's revenue has not shown growth compared to previous years, with 2020 revenue at 295 million yuan, which is higher than the figures for 2023 and 2024 [3]. Accounts Receivable and Risk - The accounts receivable turnover days significantly increased from 172 days in 2023 to 322 days in 2024, indicating rising bad debt risks [3]. - The company recorded impairment losses on trade receivables and notes receivable of 8.8 million yuan and 28.3 million yuan during the reporting period [3]. Product Development and Strategy - Deyi Group's core products include the CybeRay and TaiChiRT Pro systems, with the gross margin for the TaiChi platform solution declining from 65.3% in 2023 to 54.9% in 2024 due to strategic adjustments in commercialization [4]. - The company is exploring broader applications for its products and has initiated clinical trials with four hospitals to expand the indications for its systems [4]. Funding and Valuation - Since 2019, Deyi Group has raised a total of 1.571 billion yuan through seven rounds of financing, but its cash and equivalents were only 126 million yuan by the end of 2024, indicating financial strain [5][6]. - The company's post-financing valuation increased to 5.135 billion yuan, a 55% rise from the previous valuation of 3.315 billion yuan before its last application for the Sci-Tech Innovation Board [6]. Investor Behavior - Prior to the current IPO application, several early investors opted to cash out, transferring shares at prices ranging from 28.93 yuan to 36.33 yuan per share, reflecting concerns over the company's financial health and future prospects [5][6][7].

Core Viewpoint - The company, Xi'an Dayi Group Co., Ltd., has submitted an application for listing on the Hong Kong Stock Exchange, aiming to leverage the growing demand in the medical device industry and address its financial challenges, including increasing accounts receivable and ongoing losses [1][2][6][14]. Company Overview - Xi'an Dayi Group was established in 2011 and is a global leader in innovative radiotherapy solutions, focusing on building a new generation of intelligent radiotherapy ecosystems [1]. - The company's core products include CybeRay, the world's first real-time image-guided gamma radiotherapy system, and TaiChiRT Pro, the first FDA-designated breakthrough medical device for integrated X/gamma radiation therapy [1][10]. Financial Performance - The company has not yet achieved profitability, with projected revenues of approximately 261 million RMB and 264 million RMB for 2023 and 2024, respectively, alongside losses of about 69.78 million RMB and 94.57 million RMB for the same periods [2][3]. - The overall gross margin is expected to increase from 49.2% in 2023 to 52.7% in 2024, driven by higher contributions from the TaiChi and GMD platform solutions [4]. Accounts Receivable and Cash Flow - Accounts receivable have grown significantly, from 166 million RMB in 2023 to 298 million RMB in 2024, with turnover days increasing from 172 to 322 days, primarily due to conservative payment practices from public hospitals [6]. - Cash and cash equivalents decreased from 334 million RMB to 126 million RMB year-on-year, indicating tight cash flow [6]. Market Opportunity - The medical device industry in China is experiencing a domestic substitution opportunity, with a market size of 1.31 trillion RMB in 2023 and a compound annual growth rate of 10% from 2014 to 2023, positioning it as the second-largest globally [7]. - The market for high-end medical devices remains largely dominated by foreign companies, presenting significant growth potential for domestic players like Xi'an Dayi Group [7][10]. Competitive Landscape - Xi'an Dayi Group ranks second among domestic participants and fifth overall in the Chinese radiotherapy medical device market, with a market share of 4.7%, and leads the gamma radiotherapy market with a 75.8% share [10]. - The company faces competition from established players like Mindray Medical and United Imaging, which have broader product lines and higher revenue scales [11][14]. Future Outlook - The company aims to enhance its market presence and financial performance through continued innovation and product development, particularly in expanding the applications of its existing products [6][14].