Shanghai Synyi Medical Technology Co., Ltd., China's largest hospital AI medical solution provider, is seeking to list on the Hong Kong Stock Exchange under specialty technology company conditions.

On September 30, Shanghai Synyi Medical Technology released its draft prospectus. The prospectus shows that the company is in the relatively early stages of commercializing AI medical solutions and has recorded net losses since its establishment, with expectations to continue generating net losses during the track record period. Unable to meet the profit test, market capitalization test and other requirements under Rules 8.05(1), (2) or (3) of the Listing Rules, the company intends to formally submit its application under Chapter 18C of the Hong Kong Stock Exchange Listing Rules (Specialty Technology Company listing chapter).

**Institutional Investors Include Tencent Entities, Sequoia China and Others**

Founded in 2016, Shanghai Synyi Medical Technology is the only company globally in the AI medical industry covering L1 to L4 level solutions, with full-stack technology R&D capabilities spanning from data infrastructure to application-layer algorithms and software. (Note: L1 refers to Data Intelligence level, where AI provides data insights and analysis; L2 refers to Intelligent Assistance level, where AI provides auxiliary decision-making opinions; L3 refers to Conditional Autonomy level, where AI completes specific workflow tasks; L4 refers to Full Automation level, where AI executes end-to-end workflows.)

According to a Frost & Sullivan report, by 2024 revenue, Shanghai Synyi Medical Technology is China's largest hospital AI medical solution provider. By 2024 revenue, the company is also the world's fourth-largest large hospital AI medical solution provider. As of June 30, 2025, the company has served over 750 hospitals, including more than 400 large hospitals. Additionally, the company has launched the world's first AI-led clinic pilot in Saudi Arabia.

The joint sponsors are CITIC Construction Investment (International) Finance Limited, CCB International Financial Limited, and Bank of Communications International (Asia) Limited.

According to the prospectus, from 2017 to 2024, the company completed multiple rounds of financing, including angel round, Pre-A round to F round. In terms of equity structure, Shanghai Synyi Medical Technology's founding team is the core shareholder, including Chairman and CEO Dr. Zhang Shaodian, co-founder Dr. Ma Handong, and employee shareholding platforms including Shanghai Senji, Shanghai Senjing, Hangzhou Chuangji, Shanghai Senqi, collectively holding approximately 30.58% pre-IPO. Leading senior independent investors include Tencent entities (Linzhi Lichuang + Guangxi Tencent), Zhuhai Huiyi (IDG Capital affiliate), Sequoia China, among others. Tencent entities hold 13.25%, Zhuhai Huiyi holds 11.28%, and Sequoia China holds 11.23%, all being long-term capital that invested over 12 months before IPO.

**Revenue Nearly 290 Million Yuan Last Year, 21.6% Spent on R&D**

According to the prospectus, for 2022, 2023, 2024 and the six months ended June 30, 2024 and 2025, Shanghai Synyi Medical Technology's revenue came from 121, 179, 244, and 83, 134 customers respectively. Revenue increased 66.3% from 143.7 million yuan in 2022 to 239.1 million yuan in 2023, further growing 22.1% to 291.9 million yuan in 2024; and 91.1 million yuan and 112.3 million yuan respectively. During the reporting period, the company recorded operating losses of 232.5 million yuan, 142.6 million yuan, 49.4 million yuan, and 23 million yuan, 20.7 million yuan respectively.

As of June 30, 2025, the company held cash and cash equivalents of 48.628 million yuan, with cash burn rate reduced to 3 million yuan per month (compared to 22.3 million yuan per month in 2022).

Despite increasing revenue year by year and narrowing operating losses, Shanghai Synyi Medical Technology still states that the company has generated losses in the past and may not be able to achieve or subsequently maintain profitability, partly due to significant investments in R&D. If financial resources are insufficient to support R&D activities, it may not be able to keep up with technological advances or meet the evolving needs of customers and clients, which could lead to delays in launching new products and solutions, giving competitors opportunities to gain larger market share and further erode the company's competitive position in the market, resulting in market share loss, revenue reduction and decreased profitability. Therefore, the company may need to obtain additional funding through public or private offerings, debt financing, cooperation and licensing arrangements, or other sources.

Shanghai Synyi Medical Technology states that the hospital AI solutions industry is still in its infancy and relatively fragmented. Currently, only a few companies have built comprehensive solution systems that can meet hospitals' complex needs and achieve commercial success.

Classified by customer type, hospital AI solution providers can be roughly divided into two categories: one focuses on large hospitals, and the other targets small and medium-sized hospitals. Large hospitals benefit from deeper data accumulation, stronger willingness to pay, and higher responsiveness to policy measures. Large hospitals, especially those with 500 beds or more, are crucial for driving the medical AI industry. Therefore, such providers are expected to maintain their leading position in the hospital AI solutions field in the foreseeable future.

The prospectus shows that the global AI medical solutions market is expected to grow from 40 billion yuan in 2024 to 90.6 billion yuan in 2030. In China, this important sub-market, the AI medical solutions market is expected to expand from 16.4 billion yuan in 2024 to 35.3 billion yuan in 2030, accounting for 41.0% and 39.0% of the global total in 2024 and 2030 respectively. Advances in foundation models, accumulation of high-quality medical data, and supportive policy measures are driving AI medical solutions toward higher levels of automation. By 2030, the global L3-level AI medical solutions market is expected to reach 10.8 billion yuan, with China reaching 7 billion yuan. Meanwhile, L4-level AI medical solutions are expected to enter pilot projects globally by 2025, with the global market size expected to reach 800 million yuan by 2030.

According to the prospectus, most of Shanghai Synyi Medical Technology's R&D personnel are located in Shanghai, Hangzhou, and Changchun, primarily utilizing internal R&D talent for R&D activities, especially for core AI technologies, algorithms, and solutions. For 2022, 2023, 2024, and the six months ended June 30, 2025, the company's R&D costs were 135.9 million yuan, 98.4 million yuan, 63 million yuan, and 22.3 million yuan respectively, accounting for 94.6%, 41.2%, 21.6%, and 19.8% of total revenue for the same periods. During the track record period, the vast majority of these expenses were expensed.

Shanghai Synyi Medical Technology states that developing and validating advanced hospital AI models requires interdisciplinary expertise in medicine and AI, making talent costs a significant expense for hospital AI solution providers. In China, the average annual salary for medical AI engineers in 2024 ranges from 300,000 yuan to 1 million yuan. Looking ahead, labor costs are expected to be gradually optimized with the adoption of new AI tools that improve productivity and efficiency.