Futu News, December 31, this Thursday.$Yidu Technology (02158.HK) $According to the announcement, the company intends to issue about 156 million shares from December 31, 2020 to January 7, 2021, including a public offering of 15.645 million shares and an international offering of about 141 million shares at an issue price of HK $23.50 to HK $26.3 per share.

It is reported that Yidu Technology, founded in 2014, is a medical technology company that provides big data and artificial intelligence technology solutions, providing services and cooperation with medical service participants as well as regulators and policy makers. Business covers big data platform and solutions, life science solutions and health management platform solutions.

According to the Ernst & Young report, in 2019, the company ranked first among all healthcare big data solution providers in China, accounting for 5% of the highly fragmented Chinese Healthcare big data solution market. meanwhile,The company is favored by star institutional investors, including Sunshine Insurance, GIC, Tencent and so on.

In terms of financial data, the company's total revenue from fiscal year 2018 to fiscal year 2020 was 23 million yuan, 102 million yuan and 558 million yuan respectively, with a compound annual growth rate of 395.5%. In the same period, net losses of 978 million yuan, 934 million yuan and 1.511 billion yuan were recorded, while gross profit changed from negative to positive. They were-934000 yuan, 5.713 million yuan and 147 million yuan respectively.

In terms of industry, according to the Ernst & Young report, according to the Ernst & Young report, China is the second largest medical market in the world based on the national medical expenditure of US $931.4 billion in 2019. In this context, the market prospect of China Healthcare big data solution is broad.

The total investment in medical informatization in China's medical industry is 145.6 billion yuan in 2019, and is expected to grow to 356.7 billion yuan by 2024, with a compound annual growth rate of 19.6 percent.

As part of the overall information investment in China's medical industry, China Medical big data solution market was 10.5 billion yuan in 2019 and is expected to grow to 57.7 billion yuan by 2024, with a compound annual growth rate of 40.5 percent. The overall penetration rate of Healthcare big data solution (which refers to the sales revenue of Healthcare big data solution as a percentage of China's total healthcare information investment) is expected to grow from 7.2% in 2019 to 16.2% in 2024.

As for cornerstone investors, a number of cornerstone investors agreed to subscribe for a total of about US $210 million of the offer shares at the offering price, including OrbiMed Funds, Canadian Pension Plan Investment Committee, Yaqut Sdn Bhd,Tencent Mobility,Velmar Company Limited,Matthews Funds,3W Fund Management and China Oriental.

In terms of fund-raising purposes, the company intends to use the net proceeds from the share sale for the following purposes: about 35% will be used to continuously strengthen the company's core competencies, including data processing techniques and machine learning algorithms, and to enhance the company's ability to provide solutions needed by customers; about 35% will be used to fund business operations and further business expansion. About 20% is used to further enrich the company's ecosystem through strategic partnerships, investments and acquisitions; about 10% is used for working capital and general corporate purposes.