Feiyinuo Technology Co., Ltd. (referred to as "Feiyinuo") has once again initiated a bid for the capital market, submitting an IPO application to the ChiNext board. This marks its second attempt after withdrawing a STAR Market application in June 2023.

Financially, Feiyinuo's performance has shown fluctuations. The company reported a net loss of 65.5905 million yuan in 2023, despite a slight 1.65% year-on-year revenue increase. However, a turnaround was achieved in 2024, with an annual net profit of approximately 48.5561 million yuan and revenue growth of 15.51%, surpassing the 600 million yuan mark for the first time. Revenue continued to grow in 2025, rising 7.82% year-on-year, while net profit surged 106.34% to 100 million yuan.

Leveraging years of independent R&D and technological accumulation, Feiyinuo's high-end and ultra-high-end ultrasound equipment performance and quality have reached internationally leading levels. Its economy-grade products have also achieved sustained sales growth due to significant quality and technical advantages. In 2024, Feiyinuo ranked third among domestic manufacturers in total sales of medical ultrasound imaging equipment in China.

Despite its strong market position, concerns persist regarding its heavy reliance on distributor-based revenue structure, profitability quality, and cash flow status as it re-enters the capital market.

**01 Shareholder Changes and Pre-IPO Liquidation**

Feiyinuo Limited, the predecessor of Feiyinuo, was established on March 30, 2010. Founders Xi Shui, Tian Yuan, and others collectively held 70%, while external investors Wei Jimin and Xu Huidong held 30%.

The company completed its joint-stock reform in February 2022, changing its name to Feiyinuo Technology Co., Ltd., and has not issued new shares since.

Notably, seven new shareholders were added within the year preceding the IPO application, all acquiring shares via transfer. Sellers included angel investor Wei Jimin, early investors Zhou Lei, Wang Xiaojun, Jinshahe Investment, Qiming Weichuang, Qiming Ronghe, and controlling shareholder Zhoushan Chenxin.

Specific transactions in May 2025 included Zhou Lei transferring a 0.33% stake to Cheng Zhangwen for 5 million yuan, a 1.33% stake to Qiming Ronggan for 20 million yuan, and a 2.37% stake to Qiming Ronggan for 35.5703 million yuan, fully exiting her holdings. Wei Jimin sold a 1.67% stake to Cheng Zhangwen for 25 million yuan, Wang Xiaojun sold a 1.35% stake for 20.1901 million yuan, and Jinshahe Investment also transferred its stake to Cheng Zhangwen. Zhoushan Chenxin sold a 2.67% stake to Biomedical Investment for 40 million yuan and a 0.67% stake to Taihu Ketou for 10 million yuan.

In December 2025, Wei Jimin further sold a 0.8% stake to Qiming Ronggan for 14.3962 million yuan and a 1.42% stake to Qiming Rongjing for 25.6038 million yuan. Qiming Weichuang sold a 2.95% stake to Zhongxin Chuangtou for 53.1062 million yuan and a 1.32% stake to Jianfa 21 for 23.7938 million yuan. Qiming Ronghe sold a 4.66% stake to Zhongxin Chuangtou for 83.8356 million yuan and a 2.09% stake to Jianfa 21 for 37.5939 million yuan.

Feiyinuo stated the reasons for these transfers included Jinshahe Investment's fund nearing its term and personal liquidity needs for Wei Jimin, Wang Xiaojun, Zhou Lei, and Zhoushan Chenxin.

A review of Zhoushan Chenxin's ownership reveals partners include founders Xi Shui and Tian Yuan, along with Gao Wenyou and Fei Penghao. Notably, Xi Shui's ex-wife Liu Yao and daughter Xi Yuan hold 9.46% and 9.48% stakes, respectively.

Pre-IPO, external shareholders include Qiming Weichuang (10.26%), Wei Jimin (8.17%), Zhongxin Chuangtou (7.61%), Cheng Zhangwen (4.69%), Lai Shujin (4.04%), Qiming Rongjing (3.79%), Jianfa 21 (3.41%), Yuanhe Taihu (3.13%), Suzhou Yuandu (2.80%), Biomedical Investment (2.67%), Qiming Ronggan (2.13%), Jianfa 7 (0.75%), and Taihu Ketou (0.67%). Shares for Yuanhe Taihu, Suzhou Yuandu, and Jianfa 7 were also acquired via transfer in June 2023 from Xu Xiuzhen, mother of angel investor Xu Huidong.

The most recent share transfer implied a valuation of 1.8 billion yuan. The company expects a market capitalization of no less than 1.5 billion yuan.

**02 GE Origins and Pending Litigation**

Xi Shui and his current wife Tian Yuan are both former employees of General Electric (GE). They co-founded Feiyinuo with several other GE colleagues.

In March 2015, GE sued Xi Shui, Tian Yuan, and eight others, along with Feiyinuo, for alleged trade secret misappropriation, seeking substantial damages and injunctions. This lawsuit remains unresolved.

A first-instance judgment in June 2024 from the Wuxi Intermediate Court partially upheld GE's claims, ordering Feiyinuo and other defendants to pay 20 million yuan in damages. Both parties have appealed, and the case is pending a second trial.

The founding team established Feiyinuo Limited in April 2010 while still employed at GE, initially holding shares under Tian Yuan's father's name to avoid conflict. Shareholding platforms were established in July 2012 to regularize ownership.

As of the application, the founding team maintains deep involvement: Xi Shui is Chairman and General Manager; Tian Yuan is Brand Director; Gao Wenyou and Chen Huiren are Directors and Deputy General Managers; Jia Zhiyuan is a Director and Ultrasound Business Unit Director; Fei Penghao is an Employee Director and Handheld Ultrasound R&D Director; Wu Fanggang is Dean of the Research Institute.

**03 Legal Impact on Funding and Qiming Exits**

Feiyinuo maintains the litigation does not involve core technology, pose a significant operational risk, or constitute a legal barrier to the IPO. However, the dispute impacted its capital environment, leading investor Qiming Ronghe to reduce its investment in 2015.

Qiming Ronghe fully exited in December 2025 by selling its stakes to Zhongxin Chuangtou and Jianfa 21 for a total of 121 million yuan. Other Qiming funds remain shareholders.

**04 High Distributor Reliance and Elevated Sales Costs**

Founder Xi Shui cited underestimating domestic market bias against local brands as a major challenge. Feiyinuo has since developed a competitive product matrix, including the ultra-high-end ULTIMUS 9E series, breaking international monopolies. The company has also expanded into gastrointestinal endoscopes and ventilators.

From 2022 to the first nine months of 2025, domestic sales accounted for 39.69% to 42.95% of total revenue. Total revenue grew from 530 million yuan to 432 million yuan for the nine-month period in 2025, but adjusted net profit fluctuated, turning negative in 2023 due to increased sales and R&D spending for the ULTIMUS 9E launch.

Sales expenses as a percentage of revenue were consistently higher than industry averages, attributed to overseas market expansion costs. Despite this, the company maintained positive operating cash flow, with a cash balance of 237 million yuan as of September 30, 2025.

R&D expenditure remained high, supporting product iteration and technological upgrades.

**05 Rising Margins and Third-Party Payments**

Gross margins improved steadily, reaching 59.45% by the first nine months of 2025, driven by product upgrades and cost controls. However, third-party payments as a percentage of revenue rose significantly, primarily from overseas clients facing forex restrictions or specific payment practices, as well as domestic government procurement and leasing arrangements.

Accounts receivable and inventory levels remained substantial, posing potential risks to cash flow if market conditions deteriorate. Increased demo equipment for the ULTIMUS 9E series also raised inventory-related risks.