A decade after being spun off from its listed parent, Neusoft Medical is once again at the center of the capital strategy orchestrated by "China's Software Godfather," Liu Jiren.

On the evening of September 14, Neusoft Group (600718.SH) announced that a private equity fund it co-established, the Liaoning Dongtie Shengtai Private Equity Investment Fund Partnership, intends to purchase an 8.34% stake in Neusoft Medical from Dalian Neusoft Holdings for 1.083 billion yuan in cash.

This marks the second acquisition by the special-purpose fund within a short period. On August 28, the fund had already acquired a 3.93% stake in Neusoft Medical from PICC Group for 510 million yuan. Combined, these transactions will cost approximately 1.593 billion yuan for a 12.27% equity interest in Neusoft Medical, representing about 99.2% of the fund's total size of 1.606 billion yuan.

Where the funds originate

Neusoft Group serves as the primary contributor to the special fund, with a committed capital of 990 million yuan, accounting for 61.64% of the fund's total scale. Interestingly, the seller in this second transaction, Dalian Neusoft Holdings, holds a 14.56% stake in Neusoft Group, making this a related-party transaction. Liu Jiren, who serves as chairman of Dalian Neusoft Holdings and is a director of Neusoft Group, abstained from voting on the deal. Notably, Liu Jiren holds 40.47% of the voting rights in Dalian Neusoft Holdings through Dalian Kangruidao.

Once the special fund completes both acquisitions, it will hold 12.27% of Neusoft Medical. Neusoft Group, which directly holds 26.85%, plans to sign a concerted action agreement with the fund, bringing their combined stake to 39.11%. However, Genertec Capital remains the largest shareholder with 45.22%, and Neusoft Medical will not be re-consolidated into Neusoft Group's financial statements.

Unraveling the timeline

After Neusoft Medical was established in 1998 as a medical equipment division within Neusoft Group, Liu Jiren orchestrated its independent financing round in 2014 when external investors injected 2.733 billion yuan into the company. By July 2016, Neusoft Group's stake had dropped to 33.35%, and Neusoft Medical was deconsolidated. That year, Neusoft Group recognized approximately 1.52 billion yuan in after-tax gains related to stake dilution.

The financial journey has been marked by multiple IPO attempts. Neusoft Medical withdrew its STAR Market application in November 2020 and subsequently filed three unsuccessful applications with the Hong Kong Stock Exchange between 2021 and 2022. The company has struggled with profitability, posting a 78.39 million yuan net loss in 2025 while its valuation has grown substantially. From a pre-investment valuation of 2.5 billion yuan in 2014, the company reached a 14.5 billion yuan valuation in August 2024, before settling at approximately 12.987 billion yuan for the current transaction.

Strategic rationale

Industry analysts suggest the special fund structure serves as a risk buffer during asset integration, keeping initial adjustments and business restructuring outside the listed company's balance sheet while facilitating collaboration among various capital sources. However, this capital repositioning comes during a challenging period for Neusoft Group, which reported a 289 million yuan net loss in the first half of 2026 and a 6.26% decline in revenue. The company has also secured a 750 million yuan working capital loan, mortgaging multiple properties to support its operations.

The timing is particularly significant given Neusoft Medical's continued losses despite its technological achievements, including China's first photon-counting CT. With the special fund's eight-year term and Neusoft Group's stated intention to promote Neusoft Medical's listing, the investment appears aimed at clearing obstacles for a future IPO, though the company's repeated failures to secure public listing suggest considerable uncertainty remains. Liu Jiren's deep experience in capital maneuvers will be tested again as he seeks to complete the final piece of his expansive business empire.