On October 31, 2024, BrainAurora Medical Technology Limited from Zhejiang Shaoxing ("BrainAurora") re-submitted its application to the Hong Kong Stock Exchange and updated its prospectus after the hearing, quickly listing on the main board IPO in Hong Kong. BrainAurora had previously submitted its application three times on August 8, 2023, March 28, 2024, and October 31, 2024 respectively after its hearing at the Hong Kong Stock Exchange on August 22, 2024.
Link to the prospectus of BrainAurora Medical Technology Limited after the hearing:
https://www1.hkexnews.hk/app/sehk/2024/106892/documents/sehk24103102164_c.pdf
Main Business
Established in 2012, BrainAurora, as a company in the commercialization stage, has become a senior participant in China's cognitive impairment digital therapy market. It is also the first Chinese company to combine neuroscience with advanced artificial intelligence technology to develop medical-grade digital therapeutic products, and has established end-to-end capabilities from research and development to commercialization.
BrainAurora's product pipeline covers comprehensive cognitive impairment assessments and interventions triggered by vascular diseases, neurodegenerative diseases, mental disorders, and developmental defects in children.
As of October 22, 2024, BrainAurora's core product, the 'Brain Functional Information Management Platform Software System,' is a medical-grade digital therapeutic product based on evidence-based medicine. It is also the first cognitive impairment digital therapeutic product approved by regulators in China. It has already commercialized eight indications for four main types of cognitive impairments and is developing several other indications for cognitive impairments.
As of the same date, BrainAurora has obtained regulatory approval for an additional four products and has six candidate products at various preclinical and clinical development stages, including:
Three products have obtained regulatory approval in China: Basic Cognitive Ability Test Software (BCAT), Cognitive Ability Screening Assessment Software (SAS), and Dyslexia Screening Assessment Software (DSS);
One product has obtained regulatory approval in the European Union: Cognitive Function Disorder Treatment Software;
Six candidate products: New Coronavirus-Induced Cognitive Impairment Assessment and Rehabilitation Training Software, ADHD (Attention Deficit Hyperactivity Disorder) Assessment and Treatment Software, Depression Cognitive Quantitative Assessment Software, Depression Treatment Software, Cognitive Function Disorder Assessment Software, and Cognitive Function Disorder Treatment Software.
The core product of Brain Dynamic Aurora Mobile has been included in the provincial medical insurance reimbursement catalog in 30 provinces in China. According to data from Frost & Sullivan, Brain Dynamic Aurora Mobile is also the first undertaking unit of a project initiated by the National Health Commission. The company's task under this project is to help hospitals establish cognitive centers in more than 2,100 public hospitals nationwide, promoting the development of the digital cognitive disorder therapy market in China. As of October 22, 2024, Brain Dynamic Aurora Mobile has assisted over 120 hospitals in China to establish cognitive centers, including several leading hospitals certified as "National Medical Centers" in various medical specialties established by the National Health Commission.
Brain Dynamic Aurora Mobile's revenue comes from (i) providing in-hospital system integration software solutions, enabling hospitals to provide assessments and interventions to their cognitive disorder patients; (ii) providing out-of-hospital system integration software solutions to individual patients; (iii) providing research project services to research institutions; (iv) providing auxiliary training services to assist clients in organizing training courses and logistical support for cognitive disorder medical specialists; (v) others, such as sales of embedded hardware systems and related user accounts.
Shareholder Structure
According to the prospectus disclosure, Brain Dynamic Aurora Mobile's equity structure before listing shows,
Mr. Tan Zheng, through ZTan Limited, holds 25.38% of the shares;
Dr. Wang Xiaoyi holds 10.05% of shares through Wispirits Limited.
Dr. Wang Xiaoyi, Mr. Jin Yedong, and Mr. Guan Song hold 4.10% of shares through Wiseforward Limited (Dr. Wang holds all voting rights).
Dr. Wang Xiaoyi, Dr. Xiang, Mr. Lin Xiang, Mr. Wang Qingquan, and Mr. Wang Sen hold 2.80% of shares through Neurobright Limited (Dr. Wang holds all voting rights).
Limited partners of Tianjin Kangsheng, Mr. Zhao Yujie, Mr. Zhang Ben, Mr. Fu Rong, Ms. Zhang Xueting, Ms. Xing Dan, Ms. He Dingjuan, Mr. Guo Xiaohua, Ms. Sun Fan, Mr. Chen Shuwang, and Mr. Jin Yedong, hold 9.13% of shares through Healthblooming Limited (Mr. Tan holds all voting rights).
Related persons of Tianjin Chengye hold 3.72% of shares through Integriness Limited (Mr. Tan holds all voting rights).
Mr. Tan Zheng and Dr. Wang Xiaoyi are acting in concert, voting based on Mr. Tan Zheng's views, collectively controlling approximately 55.18% of the voting rights of the above shareholders.
Ms. Li Mingqiu holds 11.38% of shares through Crusky Limited.
Wisdomspirit Holding Limited, a stock incentive plan trust, holds 7.85% of shares.
Northern Light Venture Capital, through NLSF, NLVF, NLPF respectively holds 0.88%, 10.66%, 0.15%.
Mr. Lv Yajun, through China Fangda Capital Holdings, holds 6.47%;
China International Capital Corporation, through CICC Healthcare holds 1.79%;
Peking Feima Travel, holds 1.59%;
Shenzhen Forui, holds 1.31%;
Related parties of Anji Shundian, through Anji Shundian Limited, hold 1.03%;
Ms. Li Qing, through Ambertech Limited, holds 0.69%;
Mr. Huang Guangwei, holds 0.69%;
Ms. Wang Jie, holds 0.34% through Jenny Wang Limited.
Board of directors and executives
The board of directors of Nao Dong Aurora consists of 8 directors, including:
2 executive directors: Mr. Tan Zheng (Chairman of the Board, Chief Global Strategy Officer) and Dr. Wang Xiaoyi (Chief Executive Officer and Chief Research Officer);
3 non-executive directors: Mr. Li Sirui, Ms. Li Mingqiu, Mr. Deng Feng;
3 independent non-executive directors: Mr. Lin Xiaobo, Dr. Duan Tao, Mr. Li Yuezhong.
In addition to the executive directors, the management team includes Mr. Cai Longjun, Chief Technology Officer and Chief Operating Officer, Mr. Wang Junjie, Chief Financial Officer, and Mr. Lai Zhiyuan, Vice President of Marketing and Operations.
Corporate Performance
The prospectus shows that in the past 2021, 2022, 2023, and the first six months of 2024, the revenue of Aurora Mobile was RMB 2.299 million, 11.291 million, 67.2 million, and 51.887 million respectively; the corresponding research and development expenses during these periods were RMB 32.76 million, 67.627 million, 90.733 million, and 64.231 million respectively; the corresponding net losses during these periods were RMB 0.698 billion, 0.502 billion, 0.359 billion, and 1.14 billion yuan.
Intermediary Team
The intermediaries for the Aurora Mobile IPO include China International Capital Corporation and Pu Yin International as its joint sponsors; Deloitte as its auditor; Tian Commerce and DLA Piper respectively as its corporate lawyers in China, and its lawyers in Hong Kong and the USA; Zhong Lun and Kewell as its brokerage lawyers in China, and its lawyers in Hong Kong and the USA; Frost & Sullivan as its industry consultant.
