On January 26, iFLYTEK Medical Technology Co., Ltd. (hereinafter referred to as "iFLYTEK Medical") submitted an IPO application to the Hong Kong Stock Exchange.
As the parent company of iFLYTEK Medical, iFLYTEK (002230SZ) holds its 5247% of the shares.
The disclosure of this prospectus also gives the outside world a glimpse of the overall operation of iFLYTEK's medical sector.
Specifically, iFLYTEK Medical mainly provides electronic medical records and other information services for medical institutions, and the real payers are local health commissions.
During the reporting period, iFLYTEK Medical was still in a loss-making state. The revenue in 2021 and 2022 will be 37.3 billion yuan, 47.2 billion yuan, and the net loss attributable to the parent company in the same period was 08.4 billion yuan, 1$8.9 billion.
iFLYTEK has limited cash reserves, with only 05.8 billion yuan.
In this IPO, iFLYTEK Medical attracted the focus of the market because it launched the "iFLYTEK Xinghuo Medical Large Model" in October 2023, which is claimed to outperform ChatGPT, but the prospectus did not disclose detailed data on the specific operation of the large model.
From pharmaceuticals to consultations, artificial intelligence is present in all links, and medical care with artificial intelligence wings gives the capital market more imagination.
Starting in June 2023, AI pharmaceutical companies Insilico Medicine and XtalPi have successively submitted IPO applications to the Hong Kong Stock Exchange.
Now, iFLYTEK Medical, which focuses on the consultation link, has also launched a sprint to the Hong Kong Stock Exchange.
At this moment, iFLYTEK Medical has been waiting for 30 months - on August 4, 2021, iFLYTEK (002230SZ) issued an announcement on the planning to spin off iFLYTEK Medical for listing, but there has been no news since then, and its IPO plan has not been officially implemented until this year.
At present, iFLYTEK Medical's revenue is mainly divided into four major sectors: primary medical institution services, hospital services, patient services and regional management platform solutions, of which primary medical institution services are the main income**.
In 2021 and 2022, the services of primary medical institutions will generate 21.6 billion yuan, 29.8 billion yuan, accounting for .20%。
The services of primary medical institutions involve intelligent medical assistants and chronic disease management, and the payers behind them are the local health commissions.
We mainly sign agreements with local health commissions to provide primary care provider services to them and the primary medical institutions under their supervision. We provide support through remote support as well as on-site assistance. We also provide ongoing services after the implementation of the project, including software updates and medical knowledge graph updates. iFLYTEK Medical said.
Intelligent medical assistants mainly provide AI-assisted diagnosis and treatment for doctors in primary medical institutions, covering various services such as intelligent consultation, case standardization and quality control.
As of late January 2024, iFLYTEK Medical's intelligent medical assistants have covered 30 provinces across the country, assisting primary medical institutions in providing 2800 million electronic medical records and 7400 million AI-assisted diagnosis and treatment recommendations.
In 2022, the intelligent medical assistant has generated 21.7 billion yuan has supported half of iFLYTEK's medical revenue.
According to Frost & Sullivan data, in 2022, the revenue of intelligent medical assistants ranked first in the clinical decision support system market of China's primary medical institutions, with a market share of 766%。
In addition, the intelligent medical assistant is also integrated into the primary medical business, family doctor contract and other system services, which can provide comprehensive information solutions for primary medical institutions.
According to iFLYTEK Medical, the intelligent medical assistant is the world's first and only intelligent solution that has passed the national medical practitioner qualification examination (comprehensive written examination). Among them, the National Medical Practitioner Qualification Examination is divided into comprehensive written examinations and practical skills.
However, it may be difficult to prove that the intelligent medical assistant is uniquely competitive.
According to public information, ChatGPT, which has not yet undergone professional medical knowledge training, has also passed the medical practitioner qualification examination.
In February 2023, ChatGPT passed the U.S. Medical Practitioner Exam; In June of the same year, the team of Wu Chenghan from the Department of Neurosurgery of the Second Hospital of Zhejiang University confirmed that ChatGPT passed China's national medical practitioner qualification examination (practical skills).
Relying on brushing questions, it is not new for computers to pass the medical licensing exam. The special significance of this matter is that ChatGPT is not a professional model trained for any exam. It has a wider range of knowledge, more like a scholar who has read poetry and books, and at the same time is a little genius who is proficient in trivia and common sense of life, and by the way, it can also pass the medical licensure exam. Wu Chenghan once commented on this.
After ChatGPT swept all walks of life since 2023, in October of the same year, iFLYTEK Medical launched the iFLYTEK Xinghuo Medical large model, which can be used in more than 300 medical scenarios.
Liu Qingfeng, chairman of iFLYTEK, pointed out at the 2023 iFLYTEK Global 1024 Developer Festival that the answer rate of iFLYTEK Xinghuo medical model is higher than GPT4 in terms of medical massive knowledge Q&A and medical professional document generation.
The prospectus said that "the iFLYTEK Xinghuo medical model has been rigorously evaluated and performs better than GPT in various NLP tasks in medical scenarios." ”
However, regarding the specific data of the iFLYTEK Xinghuo medical model that is better than GPT and more luck, this prospectus does not make a fuller disclosure of this.
Despite the blessing of dazzling concepts such as medical models, the overall business essence of iFLYTEK Medical is to provide medical institutions with intelligent medical services such as electronic medical records and first-class diagnosis and treatment.
Both A-share and Hong Kong** have ushered in the landing of smart medical service providers with the National Health Commission or medical institutions as the main customer groups.
In September 2023, Neusoft Xikang (9686.) will land in the port ** fieldHK) is a cloud hospital platform that takes the city as the entry point to provide patients in a certain area with various services such as online diagnosis and treatment, appointment and appointment of aggregator medical institutions, and the payer is the local health commission; As early as 2011, Weining Health (300253SZ) mainly provides hospitals with clinical information systems, electronic medical records, diagnosis and treatment and other smart medical services.
The current performance of iFLYTEK Medical is similar to that of Neusoft Xikang, both of which are in a state of loss. In the first three quarters of 2023, iFLYTEK Medical's net loss still reached 15.9 billion yuan.
In this regard, iFLYTEK Medical is indeed looking for a new way out - expanding the customer base from the medical institutions of the National Health Commission to C-end patients.
Speech recognition technology has always been an important technical advantage of iFLYTEK Medical, for example, iFLYTEK Medical's voice recognition technology supports the generation of electronic medical records for the voice version.
Using advanced medical voice recognition and medical image recognition technology, we provide AI-powered microphone "Transcription" to support voice-based electronic medical record generation and help doctors improve work efficiency. "iFLYTEK medical expenditures.
iFLYTEK Medical is expanding this advantage to the field of intelligent hardware devices.
At present, iFLYTEK Medical provides patients with intelligent hardware equipment including hearing aids, patient services and post-diagnosis management in smart hospitals.
However, the revenue scale of this sector is relatively limited, generating 02.7 billion yuan, accounting for only 780%。
Not only that, the gross profit margin of patient services is also lower than that of the primary medical institution service segment. In 2022, the gross profit margin of patient services was 39%, which was 14% lower than that of primary medical institutions4 percentage points.
At the same time, iFLYTEK's sales expenses are not low.
Sales expenses for the first three quarters of 2023 were 09.1 billion yuan, 16 billion and 12.9 billion yuan, accounting for the proportion of revenue respectively9% and 397%。
At the same time, iFLYTEK's cash is not abundant, and the amount of cash and cash equivalents as of the end of September 2023 is only 05.8 billion yuan.
An IPO is imminent, but it remains to be seen whether iFLYTEK's business is enough to attract the capital market.