On September 29, Neuracle, a leading player in China's brain-computer interface sector, updated its prospectus for a STAR Market IPO. According to the latest financial data disclosed by the company, it generated revenue of 46 million yuan in the first half of this year while recording a net loss attributable to shareholders of 65 million yuan.

Before that, from 2023 to 2025, the company piled up cumulative losses of 329 million yuan over three years, roughly 1.32 times its total revenue over the same period.

Looking back at the company's development, its ability to become a strong contender for the title of "first brain-computer interface stock" is inseparable from the efforts of founder Xu Honglai, a Tsinghua University standout who has devoted more than two decades to the industry. In 2011, Xu Honglai teamed up with Tsinghua alumnus Huang Xiaoshan to co-found the company. In 2019, it formally entered the invasive brain-computer interface field. In March 2026, the company's invasive brain-computer interface product NEO-ONE SCI received approval from the National Medical Products Administration for market launch, making it the world's first approved brain-computer interface medical device.

However, as a star product holding the world's first approval for an invasive brain-computer interface medical device, NEO-ONE SCI is still in the early stages of commercialization. According to the prospectus, as of the first half of 2026, nearly all of the company's core business revenue came from non-invasive products. Among them, the EEG acquisition system contributed revenue of 29.7007 million yuan in the first half, accounting for 64.56% of core business revenue. In July this year, NEO-ONE SCI achieved its first commercial sale, selling 13 units, completing 8 product implants, and securing more than 70 intent orders.

The company updated its prospectus but has yet to achieve profitability. On September 29, the company, vying to become the "first brain-computer interface stock," disclosed an updated prospectus (application draft). The latest financial data show that in the first half of 2026, it generated revenue of 46 million yuan and recorded a net loss attributable to shareholders of 65 million yuan. Over a longer time frame, from 2023 to 2025, its revenue was 75 million yuan, 66 million yuan, and 108 million yuan, respectively, with a compound annual growth rate of more than 20%. Yet even as revenue grew, its losses continued to widen. In 2023, it recorded a net loss attributable to shareholders of 49 million yuan, and the loss grew to 50 million yuan in 2024. In 2025, it recorded a full-year net loss attributable to shareholders of 230 million yuan, up 365.33% year on year. Over the three years, cumulative losses reached 329 million yuan, about 1.32 times total revenue over the same period.

According to information disclosed in the prospectus, the sharp increase in the scale of losses in 2025 was related to a relatively large share-based payment expense in that period. In 2025, the company implemented equity incentives for actual controllers Xu Honglai and Huang Xiaoshan, recognizing a one-time equity incentive expense of 192 million yuan. Based on the characteristics of comprehensive management by the actual controllers and on cautionary grounds, the full amount was included in administrative expenses. In addition, the company's continuously increasing R&D investment also squeezed its profit margin to some extent. According to the prospectus, from 2023 to 2025, its R&D expenses were 64 million yuan, 58 million yuan, and 65 million yuan, respectively, with cumulative R&D investment of 187 million yuan over three years, accounting for 84.94%, 87.85%, and 60.02% of operating revenue, respectively. As of June 30, 2026, the company had undistributed net profit of about -532 million yuan, with a large accumulated unrecovered loss.

In its risk warning, the company explicitly stated that for some time to come, its R&D investment is expected to remain at a relatively high level. If sales growth of its existing products falls short of expectations, or if R&D registration or commercialization progress of products under development is unfavorable, this will have a material adverse impact on its future profitability, and the company may face the risk of continued losses, inability to eliminate or even continued expansion of accumulated unrecovered losses, and negative net assets. In terms of assets and liabilities, as of the end of the first half, the company's total assets were about 766 million yuan, equity attributable to owners of the parent company was 648 million yuan, and the debt-to-asset ratio was about 15.4%. The updated prospectus also mentioned that the company plans to publicly issue no more than 20 million RMB ordinary shares in this listing attempt, with total planned fundraising of about 2.5 billion yuan. Of that, 1.776 billion yuan is intended for brain-computer interface R&D projects; 174 million yuan for brain-computer interface production and construction projects; and the remaining 550 million yuan for replenishing working capital.

A Tsinghua standout leads the team, bringing science fiction into reality. Information from Tianyancha shows that Neuracle Technology (Shanghai) Co., Ltd. (referred to as "Neuracle") was established in 2011, and one of its actual controllers is Xu Honglai. According to public information, Xu Honglai was born in 1984 and entered the Department of Biomedical Engineering at Tsinghua University in 2001. In 2004, he became a member of a brain-computer interface research group. The following year, the research group he belonged to took first place in an international brain-computer interface data competition, and a brain-computer interface device he developed was even featured on Xinwen Lianbo, briefly making the technology a hot topic at the time. In 2006, as he was about to graduate with a master's degree, Xu Honglai received an offer from a major medical device company, but on the advice of his advisor Hong Bo, he ultimately chose to continue his studies and then start a business. During his doctoral studies, with ample funding support and assistance, Xu Honglai abandoned the mature analog technology route abroad and innovatively shifted to an "all-digital" approach to brain-computer interfaces. This route also defined the company's earliest technological foundation and determined its shared underlying capabilities in both invasive and semi-invasive brain-computer interfaces: low-noise acquisition, anti-interference, and emphasis on system performance. In November 2011, Xu Honglai joined hands with alumnus Huang Xiaoshan to found Neuracle Technology (Changzhou) Co., Ltd. in Changzhou Science and Education Town.

After years of persistent exploration, around 2015, the team finally produced its first usable product prototype, which withstood blind testing by hospital experts. Thanks to this product, the company successfully secured an angel round of financing worth tens of millions of yuan that year. In 2019, as the brain-computer interface track continued to heat up, the company obtained another 60 million yuan in financing. By then, its non-invasive EEG products had established a firm foothold in China's scientific research market. In 2019, Elon Musk's Neuralink released a brain-computer interface system, quickly sparking global discussion, and the company immediately officially launched invasive brain-computer interface R&D. Unlike Neuralink's fully implantable flexible electrode approach, the company chose a more "pragmatic" semi-invasive route—placing electrodes outside the dura mater rather than inserting them into brain tissue.

After that, the company's development in the invasive brain-computer interface field began to accelerate. In October 2023, it completed its first invasive brain-computer interface surgery at Xuanwu Hospital of Capital Medical University. In August 2024, its invasive brain-computer interface medical device NEO-ONE SCI entered the National Special Review Procedure for Innovative Medical Devices. In March 2026, NEO-ONE SCI received approval from the National Medical Products Administration for market launch, becoming the world's first approved brain-computer interface medical device. According to the prospectus, NEO-ONE SCI is suitable for patients with quadriplegia caused by cervical spinal cord injury. It identifies movement intention by collecting patients' EEG signals and uses a pneumatic glove device to assist in compensating for hand grasping function. Clinical trial and follow-up data show that at 3, 6, and 12 months after implantation, the ARAT response rate assisted by NEO-ONE SCI was 100%. Among them, at 6 and 12 months after surgery, 68.8% and 81.3% of patients, respectively, showed significant improvement in ARAT grasp scores compared with baseline while unassisted, and paralyzed patients were able to gradually recover hand motor function, indicating a good effect on neural pathway recovery. It is worth mentioning that, according to Beijing Daily, just two days after the product was approved, its medical insurance code was implemented. A week later, Shanghai's medical insurance authorities completed a rapid review through a green channel and, on March 23, jointly completed the document issuance procedure with the health department, including NEO-ONE SCI in Shanghai's medical insurance medical consumables catalog.

With the world's first brain-computer interface approval in hand, commercialization remains in its early stages. Despite holding the world's first approval for an invasive brain-computer interface medical device, the company's related products are still in the early stages of commercialization. Radar Finance learned from the prospectus that the company's products can mainly be divided into two major categories: invasive and non-invasive. Among them, invasive products include rehabilitation compensation products, neuromodulation products, and other products, with core products being NEO-ONE SCI and NEO-ONE ANS. Non-invasive products cover medical EEG machines, electromyography evoked potential instruments, intraoperative neuromonitoring devices, transcranial electrical stimulators, as well as scientific research EEG machines, transcranial electrical stimulators, and others. However, judging from the composition of its main business, nearly all of the company's current revenue comes from non-invasive products. Data show that in the first half of 2026, the company's EEG acquisition system project contributed revenue of 29.7007 million yuan, accounting for 64.56% of main business revenue. In the same period, revenue from transcranial electrical stimulation equipment was 5.7601 million yuan, accounting for 12.52%; revenue from customized development or technical services was 7.5421 million yuan, accounting for 16.39%; and other products contributed 3.002 million yuan, accounting for 6.53%. The company stated plainly that although NEO-ONE SCI has been approved for market launch, it is still in the early stages of commercialization, while another core product, NEO-ONE ANS, and other products under development remain in the R&D stage and had not generated revenue during the reporting period.

However, the company disclosed that as of the signing date of the prospectus, NEO-ONE SCI had completed online listing procedures in 27 provinces and was continuing to push for hospital entry. In July this year, NEO-ONE SCI achieved its first commercial sale, selling 13 products, completing 8 product implants, and obtaining more than 70 intent orders. At the same time, the company said that multiple products under development will also gradually achieve commercialization in recent years, and the industrialization of core technologies is in good shape. The company also pointed out that the commercialization performance of invasive brain-computer interface products will be affected by multiple factors, including clinical penetration, disciplinary development, surgical procedure promotion, and patients' ability to pay. "If situations such as slow progress in hospital entry, obstacles to clinical promotion, or weak payment capacity occur, there is a risk that the commercialization of new products will fall short of expectations," the company further stated. Radar Finance will continue to follow the company's subsequent development.