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 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].