New Stock News | Wenqi Zhongyi Technology submits application to Hong Kong Stock Exchange to become the largest provider of AI-enabled traditional Chinese medicine medical services in Mainland China in 2023.

On January 9th, Wenzhi Traditional Chinese Medicine Technology submitted an application for listing on the Hong Kong Stock Exchange, with Haitong International as the exclusive sponsor. According to the prospectus, based on the report from Zhoushi Consulting, in terms of revenue from artificial intelligence-enabled services, Wenzhi Traditional Chinese Medicine Technology is the largest provider of AI-enabled traditional Chinese medical services in mainland China in 2023. According to the same source, Wenzhi Traditional Chinese Medicine Technology is the only traditional Chinese medicine service provider to have successfully commercialized its own technology on a large scale. Among the top five AI-enabled traditional Chinese medical service providers in mainland China in 2023, Wenzhi Traditional Chinese Medicine Technology achieved the highest year-on-year revenue growth. Wenzhi Traditional Chinese Medicine Technology has independently developed the Traditional Chinese Medicine Artificial Intelligence-assisted Diagnosis and Treatment SystemTCM Brain, which is equipped with the largest clinical knowledge graph in the global traditional Chinese medical service industry. According to the report from Zhoushi Consulting, as of the last feasible date (January 1, 2025), TCM Brain is the first and only traditional Chinese medicine artificial intelligence-assisted diagnosis and treatment system in mainland China to have undergone clinical consistency research at a tertiary hospital and received expert review from the Institute of Chinese Medicine Information at the China Academy of Chinese Medical Sciences. TCM Brain is the core of Wenzhi Traditional Chinese Medicine Technology's clinical diagnosis and prescription processes. Wenzhi Traditional Chinese Medicine Technology has established the Jingyi Academy, which, according to the report from Zhoushi Consulting, is the largest registered community of traditional Chinese medicine enthusiasts worldwide as of September 30, 2024, offering a wealth of knowledge on traditional Chinese medicine through sharing ancient and contemporary Chinese medical texts as well as the company's original content. On the business front, Wenzhi Traditional Chinese Medicine Technology has built a comprehensive layout for traditional Chinese medicine, meeting clients' needs from disease treatment and healthcare to learning and practicing traditional Chinese medicine. During the performance period, the company generated revenue from traditional Chinese medical services, traditional Chinese lifestyle products (including various traditional Chinese health products, online courses, and books), and TCM Brain subscription services. In terms of market competition, according to the report from Zhoushi Consulting, the market for AI-enabled traditional Chinese medical services is highly fragmented and rapidly developing, with the top five players holding a market share of 5.4% in 2023. As of December 31, 2023, there were over 12,600 AI-enabled traditional Chinese medical service providers in mainland China, with Wenzhi Traditional Chinese Medicine Technology ranking first in terms of revenue from AI-enabled services and holding a market share of 1.5%. The company mainly competes with public and private traditional Chinese hospitals, clinics, and other traditional Chinese medical service providers. Financially, Wenzhi Traditional Chinese Medicine Technology achieved revenues of approximately 62 million yuan, 189 million yuan, and 173 million yuan respectively for the nine months ending on September 30 in 2022, 2023, and 2024, with net losses of approximately 154 million yuan, 194 million yuan, and 56 million yuan respectively. According to the risk factors section in Wenzhi Traditional Chinese Medicine Technology's prospectus, changes in the regulatory system of the mainland China medical service industry, especially changes in medical reform policies, may have a significant impact on the company's business operations and future expansion.