IPO News: Brain Dynamic Aurora Medical Holds Hearing, with accumulated losses exceeding 1.5 billion in three years.

According to the news from the Hong Kong Stock Exchange on August 22, NaoDong Medical Technology Co., Ltd. (NaoDong Medical) held a listing hearing on the main board of the Hong Kong Stock Exchange, with CICC and Pu Yin International as its joint sponsors. The prospectus shows that NaoDong Medical was established in 2012, with a product pipeline covering a wide range of cognitive impairments induced by vascular diseases, neurodegenerative diseases, mental illnesses, and developmental defects in children. As of July 5, 2024, the company's core product, a brain functional information management platform software system, has been commercialized for eight indications of four major types of cognitive impairment and is developing several other indications. As of July 5, 2024, NaoDong Medical has three other products that have obtained regulatory approval in China, including cognitive function assistant screening assessment software, and one product has obtained regulatory approval in the EU (i.e., cognitive functional impairment treatment software), while six candidate products are in various stages of pre-clinical and clinical development or registration. As of July 5, 2024, NaoDong Medical's system has been included in the reimbursement directory of provincial medical insurance in 30 provinces in China. According to Frost & Sullivan data, NaoDong Medical is also the first contractor for a project initiated by the National Health Commission, with the company tasked with helping the National Health Commission establish cognitive centers in more than 2,100 public hospitals nationwide and promoting the development of the digital therapy market for cognitive impairments in China. NaoDong Medical also cooperates with hospitals to establish cognitive centers outside of the National Health Commission project, to help the company establish long-term business relationships with participating hospitals. As of July 5, 2024, NaoDong Medical has helped establish cognitive centers in over 80 hospitals in China, including several leading hospitals certified as "National Medical Centers" in various medical specialties set by the National Health Commission. Financially, for the fiscal years 2021, 2022, 2023, and the three months ending March 31, 2024, NaoDong Medical achieved revenues of 2.299 million yuan, 11.291 million yuan, 67.20 million yuan, and 25.884 million yuan respectively. Different from the rapidly growing revenue, NaoDong Medical is still in a long-term loss stage. From 2021 to 2023, the company recorded losses of 698 million yuan, 502 million yuan, 359 million yuan, and 51.608 million yuan respectively, with a total loss of over 1.5 billion yuan in three years.