According to recent news from the Hong Kong Stock Exchange (HKEX), Brain Aurora Medical Technology Co., Ltd. has passed the listing hearing on the HKEX Main Board. China International Capital Corporation (CICC) and SPD Bank International serve as joint sponsors. The prospectus shows that Brain Aurora Medical was founded in 2012. Its product pipeline covers the evaluation and intervention of a wide range of cognitive disorders induced by vascular diseases, neurodegenerative diseases, mental illnesses, and childhood developmental defects, among others. As of July 5, 2024, the company's core product, the Brain Function Information Management Platform Software System, has been commercialized for eight indications across four major types of cognitive disorders, and it is developing several other cognitive disorder indications. As of July 5, 2024, Brain Aurora Medical has another three products that have obtained regulatory approval in China: the Cognitive Ability Auxiliary Screening and Assessment Software. In addition, one product (the Cognitive Dysfunction Treatment Software) has obtained regulatory approval in the European Union, and six candidate products are at various stages of pre-clinical and clinical development or the registration process. As of July 5, 2024, Brain Aurora Medical's system has been included in the provincial medical insurance reimbursement catalogs of 30 provinces in China. According to data from Frost & Sullivan, Brain Aurora Medical is also the first organizer of a project initiated by the National Health Commission (NHC). The company's task under this project is to assist the NHC in promoting the establishment of cognitive centers in more than 2,100 public hospitals across the country, and to promote the development of China's cognitive disorder digital therapeutics market. Brain Aurora Medical also cooperates with hospitals to establish cognitive centers outside the NHC project, to help the company establish long-term business relationships with participating hospitals. As of July 5, 2024, Brain Aurora Medical has assisted more than 80 hospitals in establishing cognitive centers in China, including multiple leading hospitals that have obtained the "National Medical Center" certification set by the National Health Commission for various medical specialties. In terms of finances, for the fiscal years 2021, 2022, 2023, and the three months ended March 31, 2024, Brain Aurora Medical achieved revenues of RMB 2.299 million, RMB 11.291 million, RMB 67.20 million, and RMB 25.884 million respectively. Despite the rapid revenue growth, Brain Aurora is still in a state of regular annual losses. From 2021 to 2023, the company recorded losses of RMB 698 million, RMB 502 million, RMB 359 million, and RMB 51.608 million respectively, with a total loss of over RMB 1.5 billion over the three years. As a pioneer in China's cognitive disorder digital therapeutics industry, Brain Aurora is quite popular among capital. In 2015, the company obtained angel round investment from Shanghai Feima Travel and Zhongwei Growth, with a post-investment valuation of RMB 36.6285 million. After that, Brain Aurora obtained several rounds of investment exceeding RMB 100 million. By 2023, the company completed the Series C+ round financing. Including the angel round, it has received a total of 7 rounds of financing, with a post-investment valuation reaching RMB 2.691 billion. With the aggravation of population aging, the total number of patients with four major types of cognitive disorders in China is rising. According to data from Frost & Sullivan, cognitive disorders have become an important public health problem among the elderly. With the aggravation of population aging, it is estimated that by 2025, the number of patients with four major types of cognitive disorders in China will reach 358 million, and by 2030 it will reach 390 million. This is a huge patient group, which is expected to generate a large amount of clinical demand. According to data from Frost & Sullivan, in 2022, the global cognitive disorder digital therapeutics market reached a scale of USD 2.1 billion, and it is estimated to increase to USD 4.2 billion by 2025 and USD 7.0 billion by 2030, with compound annual growth rates of 25.5% and 10.7% respectively. Among them, China has greater growth potential: in 2022, the scale of China's cognitive disorder digital therapeutics market reached RMB 149 million, and it is estimated to increase to RMB 1.952 billion by 2025 and RMB 9.568 billion by 2030, with compound annual growth rates of 135.5% and 37.4% respectively. As one of the pioneers in China's cognitive disorder digital therapeutics industry, Brain Aurora has accumulated some first-mover advantages. The company's R&D team consists of 122 members, including 27 experts with master's degrees and 2 experts with doctorates. The company has invested a lot of resources in R&D, established a strong technical infrastructure, and independently developed key AI models and virtual human technologies to provide innovative cognitive disorder medical technologies and solutions. In addition, the company's R&D capabilities have been recognized by the industry, including the First Class Award of the 2023 Chinese Medical Science and Technology Award issued by the Chinese Medical Association. For this Hong Kong listing, Brain Aurora plans to use the raised funds for the following purposes respectively: It is expected to be used for carrying out further R&D activities, advancing clinical trials for more indications, and promoting the sales and distribution activities of the core product system; It is expected to be used to assist more domestic hospitals in establishing new cognitive centers, through which hospitals can use the company's products to diagnose and treat patients with cognitive disorders and other conditions; It is expected to be used to strengthen the company's AI and related technical capabilities; It is expected to be used to accelerate the R&D and commercialization progress of other candidate products within and outside the company's existing product pipeline; It is expected to be used for brain science and digital therapeutics research centers in cooperation with academic institutions and hospitals; It is expected to be used as the company's working capital and other general corporate purposes. © 2021 Meishun (Hong Kong) Management Consulting Co., Ltd. and Meishun (Hangzhou) Management Consulting Co., Ltd. All rights reserved. Meishun Meiyin (Hangzhou) Consulting Management Co., Ltd. is the domestic subsidiary of Hong Kong Meishun Management Consulting Co., Ltd. under the same actual controller. Both companies are under the same actual controller, both are managed under the same Chinese governance framework, and the company complies with the laws of Hong Kong and mainland China.