Shanghai Synyi Medical Technology Co., Ltd. (hereinafter referred to as "Synyi Medical") recently submitted its application for a main board listing on the Hong Kong Stock Exchange, with CITIC Securities International, CCB International, and BOCOM International serving as joint sponsors. According to the prospectus, the company was founded in 2016. By 2024 revenue, Synyi Medical is China's largest AI-powered hospital medical solutions provider and the only global AI healthcare company offering full-stack solutions spanning L1 to L4 levels.

However, behind the accolades, the company faces multiple concerns: persistent losses and significant cash flow pressure; reliance on low-tier solutions, raising doubts about its full-stack capabilities; declining R&D investment, threatening long-term competitiveness; and abnormal client concentration spikes, casting uncertainty over revenue stability.

**Declining R&D Expenses—Full-Stack Solutions in Name Only?** Financially, Synyi Medical exhibits revenue growth without profitability. Revenue grew from CNY 144 million in 2022 to CNY 292 million in 2024, a 42% CAGR, continuing into H1 2025 with CNY 112 million (+23.34% YoY). By 2024 revenue, it ranks as China’s top AI hospital solutions provider and fourth globally.

Yet, expansion hasn’t translated to profits. Net losses from 2022–2024 totaled CNY 376 million, CNY 352 million, and CNY 207 million, respectively, narrowing but cumulatively reaching CNY 935 million. H1 2025 added another CNY 97 million loss, pushing total losses past CNY 1 billion over 3.5 years.

Cash flow is strained, with just under CNY 50 million in cash against CNY 450 million in current liabilities as of June 30, 2025, yielding a weak current ratio of 0.73.

Cost-cutting measures include slashing R&D expenses from CNY 135.9 million (94.6% of revenue) in 2022 to CNY 22.3 million (19.8%) in H1 2025. While this narrowed operating losses from CNY 232.5 million to CNY 20.7 million, reduced innovation investment may erode long-term competitiveness for an AI-driven firm.

Despite marketing its unique L1–L4 full-stack solutions, revenue heavily depends on low-complexity L1 offerings (60%+ in H1 2025). Higher-tier L2 solutions fell over 40% YoY to CNY 41.96 million, while L3/L4 contributed merely CNY 1.34 million (L4: zero), questioning its full-stack claims.

Gross margins fluctuated sharply—26.9% (2022) to 55.6% (H1 2024), then dropping to 38.9% (H1 2025), reflecting unstable business structure and earnings quality.

**Limited Paying Clients—Pre-IPO Client Concentration Spike** Synyi Medical serves over 800 clients, including hospitals and regulators, but paying clients numbered just 121 (2022), 179 (2023), 244 (2024), 83 (H1 2024), and 134 (H1 2025), suggesting many remain in trial phases.

Notably, top-five client revenue share dropped from 37.9% (2022) to 23.7% (2024), then surged to 53.9% in H1 2025. Two major clients (P and Q) began partnerships in 2025 and 2024, respectively, while three of the top five in H1 2025 were commercial service firms—a shift from traditional hospital clients, raising sustainability concerns ahead of its IPO.

Trade receivables ballooned from CNY 81.3 million (2022) to CNY 176 million (H1 2025), with days sales outstanding extending by 40 days to 156 days in 2024, worsening cash flow pressures.