As artificial intelligence technology continues to advance, the integration of AI and healthcare is gradually moving from the laboratory to clinical applications. Medical AI, a typical high-barrier field, is seeing its commercialization capabilities and technological pathways become a core focus for capital markets.
On March 20, Hangzhou Deshi Biotechnology Co., Ltd. (hereinafter referred to as "Deshi") officially launched its Hong Kong IPO, planning to issue 7,999,200 H shares with a price range of HK$95.6 to HK$112.5 per share. Prior to submitting its listing application to the Hong Kong Stock Exchange, Deshi had completed ten rounds of financing, raising a cumulative total of approximately RMB 397 million. During the international placement segment of this IPO, the company attracted subscriptions from multiple long-term funds and achieved significant oversubscription, with the subscription scale exceeding the offering by more than two times. In the current market environment, the participation of long-term capital reflects market recognition of the long-term value of platform-based medical AI companies. If priced at the upper end of the range, the company is expected to be included in the Stock Connect program, further enhancing secondary market liquidity.
**01 Validated Platform Strategy Underpins Commercialization and Market Share** Capital endorsement is first built upon the company's proven commercialization capabilities. Since its establishment in 2016, Deshi has developed a diversified product portfolio, including six medical imaging software products and three commercialized medical devices. Its core product, AI AutoVision®, focuses on intelligent chromosome karyotype analysis and received the NMPA's "Class III Innovative Medical Device" designation in May 2025. According to Frost & Sullivan data, based on 2024 sales revenue, Deshi holds a 30.6% market share in the chromosome karyotype analysis field in China, ranking first.
Looking at the competitive landscape, while there are many participants in the medical imaging AI sector, most companies, constrained by R&D costs and data barriers, focus on specific applications such as pulmonary nodule or fundus screening, resulting in relatively narrow use cases. Although single-point breakthroughs can achieve rapid deployment, they often lead to fragmented systems and a disjointed user experience in actual hospital settings. In contrast, Deshi has chosen a differentiated path, evolving from a single-point tool to a comprehensive platform. Its multi-product portfolio and cross-scenario coverage capabilities give it a degree of scarcity in the current domestic medical AI market. Deshi's financial performance further validates the initial success of this model. In the first three quarters of 2025, the company achieved revenue of RMB 112 million, a year-on-year increase of approximately 470%. Simultaneously, benefiting from an increased proportion of high-margin technology licensing business and the expansion of direct sales channels, the company's overall gross profit margin improved from 42.9% in the same period in 2024 to 75.9%.
**02 Foundational Model Builds Technological Base, Enabling Scalable Replication** If commercialization validates the feasibility of the path, then the underlying technological capability determines its future growth potential. The medical industry demands extremely high accuracy. The direct application of general-purpose large models (like ChatGPT) in medical scenarios still faces uncertainties, while traditional disease-specific AI models grapple with high training costs and long development cycles. In this context, Deshi launched the iMedImage® medical imaging foundational model. As a general-purpose vision model with hundreds of billions of parameters, it can cover over 90% of clinical diagnostic scenarios. More importantly, it offers significant advantages in R&D efficiency. Compared to traditional specialized models, its development cycle, capital investment, and training data requirements are substantially reduced (to one-tenth, one-hundredth, and one-hundredth, respectively). This means the model is not only feasible but also "faster and cheaper" to develop, providing a practical foundation for scalable replication. From an industry trend perspective, the development of medical AI is aligning with the graded diagnosis and treatment policy. Primary healthcare institutions have long faced a shortage of high-quality doctor resources. Equipment integrated with advanced AI models has the potential to significantly enhance diagnostic capabilities at the primary level. By developing its own foundational model, Deshi combines technological capability with genuine clinical needs, addressing a core industry pain point.
**03 Continued R&D Investment Anchors Valuation to Long-Term Platform Value** In its IPO fundraising plan, Deshi has clearly stated its intention to continue strengthening its technological and product capabilities. Public information indicates that approximately 49% of the funds will be used for the R&D and commercialization of its core product AI AutoVision®, and about 20% will be used to enhance the iMedImage® foundational model and AI technology. Sustained R&D investment is also key to maintaining its technological moat and platform advantage. From a valuation perspective, Deshi's current valuation range of HK$8.5 to 10 billion is not low, already incorporating a market premium for the scarcity of its "Medical AI Large Model Platform" proposition. However, from a long-term viewpoint, the justification for this valuation will still depend on two factors: firstly, whether the data flywheel effect can be continuously strengthened, and secondly, whether the low sales cost advantage can translate into profit realization. If the company can maintain its current high-growth trajectory and continuously expand its model application scenarios, its valuation is expected to be gradually absorbed as subsequent performance materializes.
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