On September 22nd, it was learned that Shukun (Beijing) Network Technology (hereinafter referred to as Shukun Technology) recently applied to the Hong Kong Stock Exchange to list on the main board of Hong Kong.
According to the prospectus, Shukun Technology was established in 2017 and is an AI image medical platform that provides artificial intelligence medical image solutions for disease screening, diagnosis, and treatment selection and planning.
Shukun Technology's digital doctor pipeline product covers most of the key treatment areas, including the heart, brain, abdomen, chest, and musculoskeletal system, and targets several of the most common and deadly disease areas globally.
According to the Zhushan report, as of the last practical feasible date, the company's digital doctor products have been widely used in more than 1,200 hospitals in China, including about 80% of the top 100 hospitals and more than 30% of the third class hospitals; among all artificial intelligence-based medical image solution suppliers worldwide, the company ranks first in coverage of treatment areas.
During the previous record period, the company's revenue mainly came from the sale of artificial intelligence products. However, the company did not make a profit and incurred losses during the previous record period. The company's operating losses were mostly due to R&D expenses, sales and marketing expenses, and administrative expenses.
According to the prospectus, Shukun Technology's revenue for the fiscal years 2019, 2020, and the first half of 2021 were RMB764,000, RMB24.771 million and RMB52.624 million, respectively, and the corresponding net losses were RMB91.298 million, RMB129 million and RMB87.424 million.
It is worth noting that the company relies on internal marketing teams and third-party dealers to promote and market its products. If the company cannot cultivate and successfully maintain sufficient sales and commercial distribution capabilities, its business and operational performance may be adversely affected.
During the above period, the expenses attributable to the company exceeded the gross profit generated by selling and providing services for commercialized products. The single R&D expenses for each period were RMB42.689 million, RMB62.933 million, and RMB81.188 million, respectively; the company incurred sales and marketing expenses of RMB16.077 million, RMB27.651 million, and RMB30.907 million, respectively. R&D expenses and marketing expenses continue to increase.
At the same time, the company may face fierce competition and rapid market changes, and its competitors may develop or commercialize similar products earlier or more successfully than the company, which may have a negative impact on the company's business and financial condition.